KPIHuman Resources

New Hire Retention Rate (12-month)

Percentage of new hires still employed at 12 months

What is New Hire Retention Rate (12-month)?

New hire retention rate at 12 months is the percentage of a cohort of new hires who are still employed a year later. It shows how well the organisation keeps the people it recruits.

Losing new hires within a year wastes the money spent on hiring and onboarding, so this rate reflects the quality of both.

How this KPI is measured

Function
Human Resources
Sub-function
Talent Retention
Industry
All Industries
Type
Lagging
Impact
People
Unit
%
Measurement frequency
Annual
Formula
(New hires still employed at 12 months / Total new hires in cohort) × 100

How to calculate it

Divide new hires still employed at 12 months by total new hires in the cohort, and multiply by 100.

For example, if 100 people were hired in a year and 82 were still employed 12 months after their start dates, the rate is 82%.

Follow each hiring cohort individually, and split by source, manager and role.

Where it is used

  • Judging hiring and onboarding quality

    See if hires stay.

  • Comparing sources

    Find channels that bring lasting hires.

  • Finding manager issues

    Spot teams with early leavers.

How to improve it

Tips and common mistakes

  • Follow hires by cohort so timing is fair.
  • Split by source and manager.
  • Read with the 90-day rate.

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