There are so many metrics that it’s hard to keep track of each and every one of them. One of the metrics that is often overlooked is the Internal Hire Rate. However, if more companies used it, it could come in handy, so if you’re not already using it, you should consider.
The reason is that it is a KPI that helps organizations that are dedicated to employee development and growth. If you want your employees to have the best performance, you should read the following lines and learn about this great KPI.
What is the Rate of Internal Job Hires and How is it Calculated?
The Internal Job Hires Rate is dedicated to those who care about the growth of their employees. In other words, the rate shows the proportion of employees that have moved internally over some time period of interest.
In order to calculate it, you have to use this formula:
Internal Hire Rate = Total Internal Hires in period / Average Headcount in period
Basically, the average headcount shows you the average number of people that are employed at your company at the start and end of the period. So, this lets you determine how many people were there during the whole period.
Usually, the time period is monthly, but it’s not uncommon for it to be measured either quarterly or annually.
How is it Helpful?
As already mentioned, this gives a KPI to organizations dedicated to the development and growth of the employees. The reason is that the rate estimates how good companies are in providing new development options for already existing employees. Firms are aware that there is a certain value to employees who have organizational knowledge, as they can help the company. Moreover, there are many career development benefits for people who move around an organization and find out about the distinct aspects the business has.
As obvious, companies that have higher Internal Hire Rates are known to provide more internal career growth opportunities to their employees. This is not only important to improve the employees’ talents and engagement. It can also offer them job satisfaction and turnover.
Therefore, this rate can be very useful to company owners. It lets them measure how well a company is in developing its employees’ skills and knowledge. Consequently, in case the rate doesn’t show something good, the employer knows they have to do something in order to change that. So, the firm will be able to perform better.
Final Thoughts
Every company owner cares about the success of his business – that’s not a surprise. Because of that, they need to use KPIs that determine how well the company does, and how well the employees perform. The Internal Job Hires rate will show the firm owner how well they develop the workers’ skills, and so, they can help the employees grow even more. As a result, the company is going to perform even better and obtain success.
If you weren’t aware of this KPI, you should now have knowledge about it.