KPI of the Day – HR: # Rookie ratio
Definition
Measures the ratio between employees with less than two years of experience, known as rookies, and the total number of employees.
Purpose
To indicate the level of experience of the personnel, as this is an important driver of organizational performance and success.
Recommendations
The # Rookie ratio provides insight into the distribution of the workforce within an organization. More precisely, it measures the percentage of employees who have been with the organization for less than two years, versus the percentage of employees who have been employed with the company for longer than that.
An organization has to strike a balance in the # Rookie ratio, as having values that are either too high or too low can yield drawbacks. Although new employees can be less efficient and more demanding in the short run, they are invaluable for refreshing the company’s spirit and working environment. However necessary a breath of fresh talent may be for the organization, it is just as important that the same organization values and retains its existing employees.
This KPI is limited by not reflecting the average experience level of employee experience. Another context for monitoring it is to measure the rookie ratio on a per-project/team/department level. A balanced rookie ratio is ideal, as it provides both the benefits of a new wave of ideas from new employees and an experienced workforce to maintain know-how and train new staff.
Moreover, accurate reporting for this KPI is dependent on a well-maintained and real-time adjusted HR internal system for monitoring employee profile data, while targets depend on the organization’s stage of development and its HR strategy in terms of attracting a fresh workforce and model them or attracting highly experienced talent.
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Tags: Human Resources performance, KPI
