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.
12 month retention rate for new hires
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 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.
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 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.