Number of Hires
You’ve done the math and you’ve chosen a program that meets your needs. Next, looking at the year in general, you need to dive into how many hires you estimate to make. This will impact both topics we have already discussed including each new employee’s cost to you, as well as the amount you spend on the program (some may be account/data amount specific when it comes to determining pricing). In order to make this easier on your team, break this number down by quarter to see what budget needs to be spent on each channel or area of your business and when.
In order to get a closer look at this number, you will have to do some digging both in records of years past and how your company culture actually works. For instance, what does your workforce consist of? Is it mostly Millennials who are ready to seek adventure to try new things? Or, is it full of older generations who enjoy the comfort of staying put in a secure position? Obviously, this will change from department to department and may even be impacted by the type of position you are looking at. Interns are much more likely to leave within the first year than someone who is senior management.
In October 2017, records indicted a total of 5.2 million new hires across businesses within just one month. [Source]
Getting a spot on number is always preferred. However, getting an average to build off of should always be in best practice - it is always better to calculate for a higher budget than run out and not have a way to hire for the positions you need to fill. Another way to help you get close to this number is by formulating your employee turnover. This can be broken up into two different categories:
Overall Turnover
- Figure the average number of employees during the measurement period (this should be by quarter). Add the number of employees at the beginning of the period to the number at the end. Divide by two to find the average number of employees, then divide the number of employees separated during the period by the average number of employees to find the employee turnover rate.
New Hire Turnover
- This calculation is actually industry specific. Calculate the number of employees who leave less than one year after being hired as a percentage of total employee turnover. If this is a high figure for your industry, it might be a clue to possible problems retaining new employees such as lack of adequate orientation and training. Here’s a great place to check industry benchmarks for turnover.
During this process, be sure to get key insights from different levels and areas of your company. It will be helpful to look into the managers and supervisors for specific departments to not only get the numbers you need, but their expertise concerning past experience with new hires and employees in general.
About Jeanette Maister:
Global talent acquisition technology leader with extensive experience in global talent acquisition, applicant tracking systems & recruiting technology, recruiting metrics and process. Deep insight into all aspects of campus recruiting strategy. Recognized for driving growth and helping clients transform their recruiting efforts.
