Terms & Calculations

Workforce Calculations

Average Headcount

Average headcount is calculated by dividing the sum of the starting and ending headcount in the given period by two.

For example, if your starting headcount in December 2020 was 265 and your ending headcount that month was 263, your average headcount will be 264.

Attrition Calculations

Attrition

Attrition is the percentage of your workforce that left during any given period.

We calculate your attrition by dividing the termination count for the given period by the average headcount for that same period.

For example, if through December 2020, you had an average headcount of 264 employees and 8 employees left, your attrition during that time was 3.0%

In order words, 8 ÷ 264 = 3.0%!

Termination Count

Termination count is the number of employees in any given period who had termination events during that time. 

For example, if 8 employees left your company between December 1st 2020 and January 1st 2021, your termination count for December 2020 will be 8.

Annualized Attrition

Annualized attrition is the percentage of your workforce that left during any given time, converted to an annualized number.

For example, if through December 2020, you had an average headcount of 264 employees and 8 employees left, your attrition during that time was 3.0%

This attrition occurred during a month with 31 days. Therefore, your annualized attrition is converted to the equivalent of a 365-day year, or 35.7%.

In order words, 3.0% attrition * 365 days a year / 31 days in December = 35.7%

Average Tenure

Average tenure captures the average number of years that employees have been actively employed at your company.

In Knoetic, this excludes any gaps in employment due to terminations (e.g. an employee was active between 2016-2018, but did not work for the company in 2017, has a tenure of 2 years.

Average Age

This is the average age of active employees in years.

Any employees in Knoetic who have no date of birth or age listed in their HRIS record will not be included in this calculation. If you have not authorized us to access employee birthdays, we use their age instead—so the number will be approximate.

Recruiting Calculations

Days-To-Hire

Days-to-hire is the average number of days between when an application is received and a candidate accepts their offer.

Specifically, we start the clock when successful candidates submit their applications (not when the job posting is opened). And we end the clock when the offer is marked as "Accepted" in your ATS.

Offer Acceptance Rate

Offer acceptance rate is the percentage of offers that are accepted by candidates.

This calculation includes offers that are accepted or rejected—it does not count offers that are deprecated, withdrawn, or pending.

Pending Starts and Terms

Pending Starts and Terms are part of Knoetic's Future Headcount tile to help you better understand how your headcount is likely to change over time.

We pull "future/pending starts" and "future/pending terminations" directly from your HRIS. These are employees who are scheduled to become active or terminated at some point in the future.

Projected Starts and Terms

Projected Starts and Terms are also part of Knoetic's Future Headcount tile to help you get an idea of how your headcount is trending. These figures are generated based on historical averages for your attrition and new hires to help predict what overall headcount will look like in the future.

These numbers are dependent on the completeness and accuracy of the data inputted into your HRIS. If your projected headcount seems off, it may be due to incomplete data in your HRIS.

Org Chart Calculations

Organizational Layers

Organizational layers are the total number of hierarchical layers or levels in your organization. This metric counts the number of layers from the CEO (inclusive) down to the bottom level of the company.

Average Span of Control

Average span of control is the average number of direct reports per manager. A “manager” is defined as someone who has at least one employee reporting directly to them in your org chart.

Knoetic automatically generates and updates your list of “managers” by identifying reporting relationships in your HRIS. This way, we are constantly keeping your list of current managers up-to-date!

Manager:Employee Ratio

The manager:employee ratio shows how many non-manager employees there are for every manager.

For example, you have 403 total workers, which includes interns and contractors (we include these workers because excluding them can cause errors with this ratio calculation).

95 of your workers are managers, and 308 are non-managers. Therefore, your manager:employee ratio is 3.2.

Knoetic automatically generates and updates your list of “managers” by identifying reporting relationships in your HRIS. This way, we are constantly keeping your list of current managers up-to-date!


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