This metric tracks the total number of net new full-time hires who joined the organization in the last calendar year, excluding employee movement as a result of a business acquisition or divestiture.
Employees are defined by local rules and regulations.
The ESG Convergence Project specifies that in order to calculate the organic net new hires, the company must take the number of employees joining the organization (excluding employee movement as a result of a business acquisition or divestiture) and subtract employee attrition. Attrition is the number of full-time employees leaving the business over the course of the year divided by the average number of full-time employees in the previous year, multiplied by 100.
Additional commentary may include management’s actions to attract and retain workers and how changes in the ability to attract and retain workers affect the company’s performance and strategy.