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Headcount Turnover - How is it calculated?
We are seeing conflicting information regarding how Headcount Turnover is calculated.
The Subject Area page says this (no reference to "daily").
The excel spreadsheet on the data lineage says this ("daily avg head count"):
Answers
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It is correct. All depends on what time grain you are reporting.
Assume today is Feb 10
Jan 1 Headcount = 100
Jan 31 Headcount = 110
Assume that 5 were terminated and 15 were hired in January
Assume that 2 were terminated on Feb 7 and 3 were hired on Feb 9If you have "Month" on your report, you will see:
Month, Avg HDC, HDC Turnover
Jan, (100+110)/2=105, (5/105)*100=4.76%
Feb, (110+109)/2=109.5, (2/109.5)*100=1.83%
Because we are on Feb 10 (our initial assumption), the period end date would be Feb 10, and not Feb 28.If you have "Date" on your report, you will see the following for Feb (not giving for Jan coz that will be 31 records)
Date, Avg HDC, HDC Turnover
Feb 1, 110, 0%
Feb 2, 110, 0%
Feb 3, 110, 0%
Feb 4, 110, 0%
Feb 5, 110, 0%
Feb 6, 110, 0%
Feb 7, (110+108)/2=109, (2/109)*100=1.83%
Feb 8, (108+111)/2=109.5, 0%
Feb 9, 109.5, 0%
Feb 10, 109.5, 0%1 -
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Thank you for the answers so far, but I think there is still some confusion regarding how this works when we look at it by year. For example, turnover rate in 2024. If we have an area that started the year with a headcount of 33, and ended the year with a headcount of 48, the calculation is averaging those two numbers for an average headcount of 40.5. However this area had a large increase in headcount mid year (up to 117) which is not accounted for if we are taking beginning and end of period. The true average daily headcount (averaging the headcount for each day of the time period, in this example year) was 68.
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Avg HDC
If you have only YEAR as the time grain on your report, it will average out the headcounts as of 1/1/2024 and 12/31/2024, which according to you are 33 and 48 respectively. What happened during mid-year won't be addressed. And I don't see anything wrong in it. The real average HC for 2024 is essentially 40.5. That is my understanding.
Would be curious to see what Raghu has to say.
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Hi All, thanks for engaging on this topic.
I agree with Sushanta's response above. The average depends on the grain of the query.
If year is the lowest grain then the headcount as of first day and last day of the year is considered for the average
If month is the lowest grain then the headcount as of first day and last day of the month is considered for the average
Some of our customers rely on Trailing Twelve Months Average Headcount. We do not have a seeded metric yet for that.
However, we have TTM Termination (Rolling 12 M) Metrics seeded.
using this, i had created a dv to compute the turnover using TTM Terminated metrics and Computed TTM Average headcount
I hereby share the same dv, take a look if it helps
refer the table on top
Raghu
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Thank you for this update! It seems like the data lineage excel spreadsheet should be updated to say average headcount and not daily average headcount since it is not always daily. We will dig in to the response and example above and will follow up with any questions.
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