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SHRM

CUSTOMIZED
TALENT
ACQUISITION
BENCHMARKING
REPORT
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TALENT ACQUISITION
BENCHMARKING REPORT

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SELECTION CRITERIA

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LICENSE AGREEMENT FOR THE SHRM CUSTOMIZED BENCHMARKING REPORT

By opening and using this SHRM Customized Benchmarking Report (the “Report”), you
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© 2017 Society for Human Resource Management. All rights reserved.

The Society for Human Resource Management (SHRM) is the world’s largest HR professional society, representing
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responsibility for any errors or omissions or any liability resulting from the use or misuse of any such information.

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TABLE OF CONTENTS

License Agreement for the SHRM Customized Benchmarking Report 1

A Guide to Your SHRM Customized Benchmarking Report 3

Customized Tables Based on Your Criteria


Recruitment 5
Selection 10
Quality of Hire 16

A Glossary of Terms 18

2
A GUIDE TO YOUR SHRM CUSTOMIZED BENCHMARKING REPORT

Understanding the Data between your figure and those found in this
report, the greater the need for additional
As you compare your own data against
scrutiny.
other organizations, please keep the
following in mind:
3. In cases where you determine that
potentially serious deviations do exist, it
1. This report is based on data derived from
may be helpful to go back and calculate the
the SHRM Customized Benchmarking
same benchmarking measure for your
Database, which contains organizational
organization over the past several years to
data from a random sample of SHRM
identify any trends that may exist.
members. The report is designed to target
companies that closely match the selected
4. The information in this report should be
criteria to allow for a more focused and
used as a tool for decision-making rather
comparable analysis and interpretation.
than an absolute standard. Because
Therefore, any interpretations of these data
companies differ in their overall business
should be kept within this context.
strategy, location, staff size and other
factors, any two companies can be well
2. A deviation between your figure for any
managed, yet some of their benchmarking
benchmarking measure and the comparative
measures may differ greatly. No decision
figure is not necessarily favorable or
should be made solely based on the results
unfavorable; it is merely an indication that
of any one study.
additional analyses may be needed.
Benchmarking measures that relate more
closely to the context of your organization’s
Working with the Data
industry and staff size are more descriptive The information in this report is designed to
and meaningful than information that is be a tool to help you evaluate decisions and
more generic in nature, such as all industries activities that affect your organization.
combined. The larger the discrepancy When reviewing these data, it is important

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to realize that business strategy, circumstances or other business initiatives
organizational culture, leadership behaviors that cause differences with your
and industry pressures are just a few of the organization’s benchmarks.
many factors that drive various
organizational measures. Absolute measures Notes
are not meaningful in isolation—they
The data in this report were collected from
should be compared with one or more
May to July 2017 and reflect fiscal year 2016.
measures to determine whether a
satisfactory level exists. Other measures, for
The number of respondents, indicated by
example, might be your organization’s past
“n,” is composed of the organizations that
results in this area or comparatives based on
responded to the specific benchmark.
organization staff size, industry or
Therefore, the number of peer organizations
geographic location.
may vary from benchmark to benchmark.
The percentile is the percentage of
Each table in the report contains
responses in a group that have values less
customized benchmarks in aggregated form.
than or equal to that particular value. The
There may be discrepancies between your
median is the 50th percentile. The average, or
organization’s benchmarks and the average
mean, is the sum of the responses divided by
or median numbers for a particular category.
the total number of responses.
It is particularly helpful to communicate to
stakeholders that just because your
Some benchmarks are less frequently
organization has benchmarks that are
collected by organizations or may be more
different from the average or median, it does
difficult to obtain. Some data are not
not mean they are favorable or unfavorable.
displayed when there are fewer than five
Rather, it may be the result of a particular
organizations for a specific metric.
total organizational strategy, special

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

RECRUITMENT

Tools Used to
Source Candidates

n 1,749
Company website 85%
Employee referrals 90%
Free job boards 71%
Informal networking 53%
Job fairs (onsite) 39%
Job fairs (virtual) 9%
Networking events 32%
On-campus college recruiting 39%
Online college recruiting 30%
Paid job boards 68%
Print advertisement 31%
Radio advertising 8%
Social media websites 67%
Staffing agencies: direct hires 36%
Staffing agencies: temp to hire 40%
Trade publications 11%
TV advertising 2%
Other 3%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

RECRUITMENT

Tools Used to
Source Executive
Candidates

n 1,641
Executive search firms (headhunters) 49%
In-house executive recruiter 28%
Industry associations 23%
Internal applicants/current employees 48%
Professional contacts/networking 61%
Recruiting websites 41%
Social media 27%
Other 3%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

RECRUITMENT

Position Responsible for


Recruiting Applicants for
Nonexecutive Job Openings

n 1,708

Hiring manager 16%

HR Generalist 48%

In-house recruiter 25%

Third-party recruiter/staffing agency 3%

Other 8%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

RECRUITMENT

Position Responsible for


Recruiting Applicants for
Executive Job Openings

n 1,635

Hiring manager 18%

HR Generalist 32%

In-house recruiter 19%

Third-party recruiter/staffing agency 10%

Other 20%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

RECRUITMENT

25th 75th
n Median Average
Percentile Percentile
Cost-per-hire 488 $500 $1,633 $4,669 $4,425

Executive cost-per-hire 247 $1,300 $5,000 $18,000 $14,936


Recruitment-expenses-to-HR-
198 0% 4% 19% 15%
expenses ratio
Requisitions per recruiter (or
716 5 15 35 29
HR FTE)
Requisitions per recruiter
(organizations with dedicated 349 10 25 54 54
recruiters)
Requisitions per recruiter
(organizations without 373 3 10 22 20
dedicated recruiters)

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

SELECTION

Selection Techniques Used


to Assess Executive Level
Candidates

n 1,329
Audition/work sample interview 22%
Behavioral or personality assessment 32%
Behavioral interview 56%
Cognitive skills assessment 16%
Competency-based interview 43%
Group interview 57%
In-person screening 50%
Knowledge test 8%
One-on-one interview 68%
Panel interview 40%
Phone screening 61%
References 74%
Skype/video conference interview 29%
Stress interview 3%
Structured interview 33%
Technical skills assessment 10%
Unstructured interview 12%
Other 1%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

SELECTION

Selection Techniques Used


to Assess Middle
Management Candidates

n 1,483
Audition/work sample interview 22%
Behavioral or personality assessment 28%
Behavioral interview 58%
Cognitive skills assessment 17%
Competency-based interview 45%
Group interview 55%
In-person screening 51%
Knowledge test 13%
One-on-one interview 68%
Panel interview 38%
Phone screening 68%
References 74%
Skype/video conference interview 27%
Stress interview 3%
Structured interview 34%
Technical skills assessment 17%
Unstructured interview 12%
Other 1%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

SELECTION

Selection Techniques Used


to Assess
Nonmanagement/Individual
Contributor Candidates
n 1,407
Audition/work sample interview 20%
Behavioral or personality assessment 20%
Behavioral interview 54%
Cognitive skills assessment 16%
Competency-based interview 43%
Group interview 45%
In-person screening 49%
Knowledge test 20%
One-on-one interview 68%
Panel interview 29%
Phone screening 68%
References 69%
Skype/video conference interview 21%
Stress interview 2%
Structured interview 33%
Technical skills assessment 27%
Unstructured interview 12%
Other 1%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

SELECTION

Selection Techniques Used


to Assess Nonexempt
(Hourly) Nonmanagement
Candidates
n 1,456
Audition/work sample interview 16%
Behavioral or personality assessment 17%
Behavioral interview 49%
Cognitive skills assessment 18%
Competency-based interview 39%
Group interview 36%
In-person screening 50%
Knowledge test 22%
One-on-one interview 68%
Panel interview 24%
Phone screening 65%
References 65%
Skype/video conference interview 15%
Stress interview 2%
Structured interview 32%
Technical skills assessment 28%
Unstructured interview 14%
Other 1%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

SELECTION

n Yes No
Use of automated prescreening to
1,668 22% 78%
review job applicant's resume

25th 75th
n Median Average
Percentile Percentile
Acceptance rate 839 86% 96% 100% 91%

Positions externally filled 747 66% 89% 100% 74%

Positions internally filled 747 0% 11% 33% 25%

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

SELECTION

25th 75th
n Median Average
Percentile Percentile
Time-to-fill 864 20 days 30 days 45 days 36 days

Open to approval 480 1 day 2 days 5 days 8 days

Approval to job posting 481 1 day 1 day 3 days 3 days


Job posting to start
488 3 days 5 days 10 days 9 days
screening
Screen applicants 483 2 days 5 days 10 days 7 days

Conduct interviews 490 3 days 5 days 10 days 8 days

Make final decision 488 2 days 3 days 5 days 5 days

Offer to acceptance 509 1 day 2 days 4 days 4 days

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

QUALITY OF HIRE

Quality of Hire Measures


Used by Organizations

n 305
360-degree feedback scores 28%
Average bonus 15%
Customer service score 20%
Error rates in performance 23%
Inclusion in succession plan 9%
Interview to performance relationship 27%
Number of awards 4%
Performance appraisal score 62%
Profit contribution 8%
Promotion frequency 8%
Promotion rate 9%
Rate of salary increase 18%
Retention rate 45%
Talent scorecard 10%
Other 6%

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SHRM TALENT ACQUISITION
CUSTOMIZED BENCHMARKING REPORT

QUALITY OF HIRE

n Yes No
Percentage of organizations
1,343 23% 77%
measuring quality of hire

25th 75th
n Median Average
Percentile Percentile
Separations within first three
610 0% 6% 25% 16%
months of employment
Separations within first six months
599 0% 9% 25% 17%
of employment
Separations within first year of
602 0% 14% 38% 26%
employment

* Metrics with a sample size (“n”) of less than 5 are not displayed.

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TALENT ACQUISITION GLOSSARY OF METRIC TERMS, DEFINITIONS
AND CALCULATIONS

Statistical Definitions Average


The average is the sum of the responses
“n” divided by the total number of responses. It
The letter “n” in tables and figures indicates is also known as the mean. This measure is
the number of respondents to each question. affected more than the median by the
In other words, when it is noted that n = 25, occurrence of outliers (extreme values). For
it indicates that the number of respondents this reason, the average reported may be
was 25. greater than the 75th percentile or less than
the 25th percentile.
Percentile
Job Positions
The percentile is the percentage of
responses in a group that have values less
than or equal to that particular value. For FTE
example, when data are arranged from FTE is an abbreviation for full-time
lowest to highest, the 25th percentile is the equivalent. Full-time equivalents represent
point at which 75% of the data are above it the total labor hours invested. To convert
and 25% are below it. Conversely, the 75th part-time staff into FTEs, divide the total
percentile is the point at which 25% of the number of hours worked by part-time
data are above it and 75% are below it. employees during the work year by the total
number of hours in the work year (e.g., if the
Median (50th percentile) average work week is 37.5 hours, total
The median is the midpoint of the set of number of hours in a work year would be
numbers or values arranged in ascending 37.5 hours per week x 52 weeks = 1,950).
order. It is recommended that the median is Converting the number of employees to
used as a basis for all interpretations of the FTEs provides a more accurate
data when the average and median are understanding of the level of effort being
discrepant. applied in an organization. For example, if

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two employees are job-sharing, the FTE Nonmanagement/Individual Contributors
number is only one. Nonmanagement/individual contributors
are salaried employees who do not have
HR FTEs direct reports and who report to
HR FTEs is the number of full-time HR management. They are responsible for the
equivalents that support the HR function tasks within their role and are exempt from
for an organizational level. The primary the Fair Labor Standard Act (FLSA) rules
responsibilities of these staff are directly and regulations. Examples of nonmanage-
HR-related, such as, but not limited to, ment/individual contributor job positions
administrative support directly related to include analyst, nurse and engineer.
HR, benefits, compensation, diversity,
generalist, HRIS and recruiting. Excluded Nonexempt (Hourly) Nonmanagement
staff are those whose primary Nonexempt (hourly) nonmanagement
responsibilities are not directly HR-related, employees do not have direct reports and
such as, but not limited to, facilities, health report to management. Nonexempt
and safety, organizational development, employees are covered by the FLSA rules
payroll, phones, training, and travel services. and regulations. Examples of nonexempt
(hourly) nonmanagement job positions
Executive include assistant, coordinator and specialist.
Executive-level job positions are at the
highest level of the organization and are HR Generalists
responsible for managing at the The HR generalist supports management on
organizational level by providing the overall a broad range of HR-related duties and may
direction of the organization and recruit on behalf of the organization as one
establishing policies and strategies. part of the generalist’s job responsibility.
Examples of executive-level management
job positions include CEO, CHRO, COO In-House Recruiters
and CFO. The in-house recruiter’s primary
responsibility in the organization’s HR
Middle Management department is to source new candidates to
Middle-management positions report to the fill open positions.
executive level and have employees who
report directly to them. Middle- Third-Party Recruiter/Staffing Agency
management employees are responsible for The third-party recruiter/staffing agency is a
overseeing products or services at the recruiter or staffing agency that recruits on
regional or divisional level. They are also behalf of the organization’s clients.
responsible for implementing company
strategy and policies. Examples of middle-
management job positions include director,
people manager and supervisor.

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Hiring Manager • Internal applicants/current
The hiring manager is the person who employees
• Professional contacts/networking
requests a job position to be filled and to
• Recruiting websites
whom the newly hired employee will
• Social media
directly report.

Recruitment Position Responsible for Recruiting


Applicants for Nonexecutive Job
Tools Used to Source Candidates Openings
To manage a higher requisition load, The job position that is primarily
recruiters may prefer to use sources that responsible for recruiting applicants for
yield a higher percentage of quality nonexecutive job openings.
candidates in the hope of lessening the
amount of time spent on the pre-screening Position Responsible for Recruiting
process. Sourcing tools include: Applicants for Executive Job Openings
• Company website
• Employee referrals The job position that is primarily
• Free job boards responsible for recruiting applicants for
• Informal networking executive-level job openings.
• Job fairs (onsite)
• Job fairs (virtual) Cost-Per-Hire
• Networking events Cost-per-hire represents the costs involved
• On-campus college recruiting with a new hire. These costs include the
• Online college recruiting sum of third-party agency fees, advertising
• Paid job boards agency fees, job fairs, online job board fees,
• Print advertisement employee referrals, travel cost of applicants
• Radio advertising and staff, relocation costs, recruiter pay and
• Social media websites
benefits, and talent acquisition system
• Staffing agencies: direct hires
costs, divided by the number of hires.
• Staffing agencies: temp to hire
• Trade publications
Executive Cost-Per-Hire
• TV advertising
Executive cost-per-hire represents the costs
Tools Used to Source Executive involved with a new executive hire. These
Candidates costs include the sum of third-party agency
fees, advertising agency fees, job fairs, online
• Executive search firms job board fees, employee referrals, travel
(headhunters)
cost of applicants and staff, relocation costs,
• In-house executive recruiter
recruiter pay and benefits, and talent
• Industry associations
acquisition system costs, divided by the
number of executive hires.

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Recruitment-Expenses-to-HR-Expenses Selection
Ratio

This is the ratio of an organization’s total Selection Techniques Used to Assess


expenses dedicated to recruitment to the Candidates
organization’s HR expenses. The
recruitment expenses includes pay and Audition/work sample interview—
benefits for the recruiting team, third-party applicants are required to provide an
agency fees, background checks, advertising example of previous work or perform a
costs, job fair costs, online job board costs, specific task that is related to the target job.
employee referral costs, travel costs of
applicants and staff, relocation costs, and Behavioral or personality assessment—a
technology infrastructure (talent standardized instrument, such as a
acquisition systems). personality test or a questionnaire (e.g.,
Predictive Index, MBTI), is used to reveal
aspects of an individual’s character. Some
Requisitions per Recruiter (or HR FTE)
organizations choose to use this technique
The requisition per recruiter (or HR FTEs) to test for person-organization fit or culture
is the average number of requisitions a fit.
recruiter is responsible for in a year.
Behavioral interview—a job interview
Requisitions per Recruiter technique where the applicant is asked to
(Organizations with Dedicated describe examples of past behavior in work
situations. The candidate’s past job
Recruiters) performance is used as an indicator of the
The requisition per recruiter is the average applicant’s performance in the position for
number of requisitions a recruiter is which he or she is being considered.
responsible for in a year in organizations
with at least one dedicated recruiter. Cognitive skills assessment—an
assessment used to measure a variety of
Requisitions per Recruiter cognitive abilities (e.g. verbal, mathematical,
reasoning, etc.).
(Organizations without Dedicated
Recruiters) Competency-based interview—candidates
The requisition per recruiter is the average are asked questions that are linked to
number of requisitions a recruiter is specific competencies needed in the role
responsible for in a year in organizations and/or organization. The questions are
without any dedicated recruiters. designed to have the interviewee give an
example of tasks he or she has performed in
the past and the outcome from that task.

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Group interview—an interview process Stress interview—an interviewing
where multiple interviewees are technique where the applicants are
interviewed at the same time. deliberately placed in a stressful situation
and evaluated based on how they react to
In-person screening—a screening is a the stress (e.g., an intimidating interviewer,
selection technique to determine if the having to complete multiple tasks,
applicant has the qualifications needed to aggressive interviewer attitudes, puzzles).
do the job for which the company is hiring. This technique is frequently used for
An in-person screening is typically positions in which the incumbent would
conducted face-to-face before a job frequently face stress on the job.
interview.
Structured interview—an interview in
Knowledge test—a standardized test to which candidates are asked the same
determine a person’s knowledge of a subject predetermined questions in the same order.
or field. All responses given by the candidates are
evaluated using the same rating scale.
One-on-one interview—a common type of
interview where an applicant is interviewed Technical skills assessment—an
individually by one interviewer. assessment used to measure a skill specific
to that field or profession.
Panel interview—an interviewing strategy
where the applicant is interviewed by Unstructured interview—an interview in
multiple people at once. which there is no a specific set of
predetermined questions, although the
Phone screening—a screening is a selection interviewers may have certain topics in
technique to determine if the applicant has mind that they wish to cover during the
the qualifications needed to do the job for interview. Unstructured interviews may
which the company is hiring. A phone flow like an everyday conversation and tend
screening is typically conducted before a job to be more informal and open-ended.
interview.
Percentage of Organizations Using
References—a written or verbal Automated Pre-Screening
recommendation typically given by a
The percentage of organizations that use
candidate’s former or current supervisor,
employer, colleague or professor. automated prescreening tools to review job
applicants’ resumes during the screening
process. These tools perform actions such as
Skype/video conference interview—an
scanning resumes for key words pertaining
interview that takes place through an online
to the job description.
video platform such a Skype or Google+.

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Acceptance Rate Job Posting to Start Screening
The ratio of the total number of full-time The number of days from the time the job is
and part-time job acceptances an posted to the time the candidate screenings
organization received from job candidates to started.
the total number of full-time and part-time
offers of employment an organization Screen Applicants
extended to job candidates. The number of days it took to screen all job
candidates.
Positions Externally Filled
The number of full-time and part-time Conduct Interviews
positions in an organization that were filled The number of days it took to conduct all
with candidates not employed by the interviews for all job candidates.
organization.

Positions Internally Filled Make Final Decision

The number of full-time and part-time The number of days from the end of the
positions in an organization that were filled interviews until final decisions on job
with candidates already employed by the candidates were made.
organization in other positions.
Offer to Acceptance
Time-to-Fill The number of days from the time an
Time-to-fill represents the number of days employment offer was extended to a job
from the time the job requisition was candidate until the time the candidate
opened until the time the offer was accepted accepted the offer.
by the candidate. This number is calculated
by using calendar days, including weekends Quality of Hire
and holidays.
Percentage of Organizations Measuring
Open to Approval Quality of Hire by Tracking
The number of days from the time the 360-degree feedback scores—the total
requisition was opened to the time the combined scores from a 360-degree
requisition was approved. feedback tool (i.e., total score is the
aggregate of all rater groups). Raters include
Approval to Job Posting the employee, the employee’s supervisor(s),
The number of days from the time the peers, direct reports and/or customers.
requisition was approved to the time the job
was posted (e.g., company website, job Average bonus—a percentage of an
boards). employee’s total salary rewarded in bonuses.

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Customer service score—the aggregate Rate of salary increase—how quickly an
score of all ratings given to an employee by employee is given a salary increase.
customers (e.g., in retail, customers are
given the opportunity to rate the employee Retention rate—how long (in years) an
who helped them). employee remains employed with the
organization (e.g., staying more than one
Error rates in performance—formally year).
documented errors in performance (e.g.,
errors in manufacturing plants that result in Talent scorecard—the total performance
decreased output, low student achievement on a talent scorecard, measured by items
scores for teachers, etc.). such as key performance indicators,
feedback, etc.
Inclusion in succession plan—whether or
not an employee is included in a formal Percentage of Organizations Measuring
succession plan. Quality of Hire

Interview to performance relationship— The percentage of organizations that track


the relationship between an employee’s quality of hire in any way.
interview evaluation scores and actual
performance appraisal/management scores Separations Within First Three Months
within six months on the job. of Employment

The percentage of total separations that


Number of awards—achievements and were employees who had tenure of three
awards given to the incumbent in the first months or less.
year of employment and/or subsequent
years. Separations Within First Six Months of
Employment
Performance appraisal score—a total
rating given during a performance review by The percentage of total separations that
an employee’s supervisor(s). were employees who had tenure of six
months or less.
Profit contribution—the proportion of an
employee’s annual sales revenue relative to Separations Within First Year of
the organization’s sales revenue in that same Employment
year.
The percentage of total separations that
were employees who had tenure of 12
Promotion frequency—how often an
months or less.
employee is promoted.

Promotion rate—how quickly an employee


is promoted.

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