Calculate the net hire ratio from hires, terminations and employee count, or solve for hires, terminations or employee base from a target ratio.

Use one period and workforce scope for all three values.

Usually average or starting headcount for the period.

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Net Hire Ratio Formula

The following formula is used to calculate the net hire ratio for a given set of values.

R = (H - T) / E

Variables:

  • R is the net hire ratio
  • H is the number of hires
  • T is the number of terminations
  • E is the total number of employees

To calculate the net hire ratio, subtract the number of terminations from the number of hires, and then divide the result by the total number of employees.

What is a Net Hire Ratio?

The net hire ratio measures hires minus terminations relative to a chosen employee base. A positive ratio indicates net hiring and a negative ratio indicates net reduction for the period. Compare values only with a consistent period, workforce scope and employee-base convention. The ratio alone does not establish hiring effectiveness or the cause of workforce changes.

How to Calculate Net Hire Ratio?

The following steps outline how to calculate the Net Hire Ratio.

  1. First, determine the number of hires (H).
  2. Next, determine the number of terminations (T).
  3. Next, determine the total number of employees (E).
  4. Finally, calculate the net hire ratio using the formula R = (H - T) / E.
  5. After inserting the values and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

Number of hires (H) = 50

Number of terminations (T) = 10

Total number of employees (E) = 200