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 am 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.

Total New Hires

Let us 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 Hire or Retro-Hire

In order to determine new hire or retro-hire you need two dates.

  1. The Hire Date
  2. The date it was entered

The rules for determining this are the following:

  • If the hire date is entered BEFORE the end of the month then it is a new hire
  • If the hire date is entered AFTER the end of the month then it is a retro-hire

Here is a table of employees showing how they would be classified as new hire, retro hire, or 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

Rehire

What we have not discussed yet is a rehire. A rehire is special case where someone is hired twice throughout their lifetime. For example, say I worked at the company from March of 2016 until June of 2017. I am terminated in June 2017, but then on Dec 2018 I am hire again. 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.

Stability

New Hires metric is a stable metric which means after the month has past the new hires metric cannot change. Retro-hires is an unstable metric which means after the end of the month is can change. An unstable metric could change between reporting periods after that reporting period has past. Rehires are stable, but any rehire that is realized after the end of the month will be a retro-hire. The ramifications of this means that total new hires is also unstable, and any more advanced metric you create that uses total new hires will also be unstable.

Analysis

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.