Percentage of new hire retention after 12 months

This measure calculates the percentage of new hires (middle management/specialists, operational workers/office staff, and senior management/executives) that are still employed at the business entity 12 months after accepting the job offer. It is part of a set of process efficiency measures that help companies optimize their "reward and retain employees" process by minimizing waste and refining resource consumption.

Benchmark Data


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Measure Category:
Process Efficiency
Measure ID:
Total Sample Size:
3,064 All Companies
25th Median 75th
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Key Performance Indicator:

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are percent.

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12 month retention rate for new hires

Key Terms

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Middle Management/Specialist

Middle management/specialist refers to managers with budgetary and/or supervisory responsibility who report to senior management and/or line managers. Typically they would have supervisors and/or line managers report to them. This staff level also includes specialists. Sample titles might include functional vice president, function/department manager, and process/line manager.

Senior Management/Executive

Senior management/executive refers to the highest-ranking officers and the managers below executives. These managers would typically have several managers reporting to them and have functional or business unit responsibility. Sample titles might include CxO, Executive vice president, Director, and Sr. Vice President.

Operational Workers/Office Staff

For the purpose of this study, operational workers/office staff refers to all employees who do not have any management responsibility. For example, this would include white-collar non managerial employees.

Retention Rate

The number of employees at the end of the year that were present at the beginning of the year divided by total number of employees at the beginning of the year.

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.


The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.1)

  • 7.5.1 - Develop and manage reward, recognition, and motivation programs (21438)
    • - Develop salary/compensation structure and plan (10498)
    • - Develop benefits and rewards plan (10499)
    • - Perform competitive analysis of benefits and rewards (10500)
    • - Identify compensation requirements based on financial, benefits, and HR policies (10501)
    • - Administer compensation and rewards to employees (10502)
    • - Reward and motivate employees (10503)
    • - Review retention and motivation indicators (10510)
    • - Review compensation plan (10511)
  • 7.5.2 - Manage and administer benefits (10495)
    • - Deliver employee benefits program (10504)
    • - Administer benefit enrollment (10505)
    • - Process claims (10506)
    • - Perform benefit reconciliation (10507)
  • 7.5.3 - Manage employee assistance and retention (21439)
    • - Deliver programs to support work/life balance for employees (10508)
      • - Manage flexible working (21440)
    • - Develop family support systems (10509)
  • 7.5.4 - Administer payroll (10497)