Understanding New Hires vs Total New Hires

In another post we discussed the difference between terminations and total terminations. There is similar concept on the hiring side with a twist. I’m going to cover that same topic on the hiring side by looking at new hires and total new hires, but I’m going to go a little faster and not cover as much detail. If you are confused make sure you read the other post and understand that idea.

Let’s discuss total new hires first because it is fairly simple. Here is the formula of total new hires:

Total New Hires = New Hires + Retro Hires + Rehires

Total New Hires encompasses all of the hiring metrics to give you an idea of who was a new hire regardless of their classification. Each set of those metrics DO NOT overlap. If they overlapped we’d double count people in the total new hires metric.

New hires and retro hires are defined much like terminations and retro terms in that they both rely on effective hire date and the valid from date. It’s the valid from date’s relationship with the end of the month that places a given employee in either the new hire set or the retro hire set. Here is a set of data showing how various employees would be classified between new hire, retro hire, and rehire.

Employee Number Action Effective Hire Date Valid From Termination Retro Hire Rehire
1001 Hire 2019-03-16 2019-03-02 Yes No No
1002 Hire 2019-03-01 2019-02-022 Yes No No
1003 Hire 2019-03-31 2019-04-15 No Yes No
1004 Rehire 2019-03-14 2019-03-18 No No Yes

A rehire is special case where someone is hired twice throughout their lifetime. For example, say I worked at the company from 03/2016-06/2017 then I left. And I was hired again on 12/2018. That would make me a rehire since I’ve been hired before. Rehires are completely based on action codes. Your source system must use an appropriate action code to classify someone as a rehire. There is no such thing as a retro rehire at this time. In theory there could be, but it is not modeled right now.

Now if we analyzed this data we’d expect to see the following in an analysis.

Date New Hires Reto Hire Rehire Total New Hires
Mar 2019 2 1 1 4

As you can see Total New Hires encompasses all 3 sets of new hires, retro hires, and rehires. Total New Hires gives you the full picture of new hires, but it might shift around between reporting periods (See Retro Hires vs Retro Terms to understand why). That’s why it is important to understand these differences.