In the context of ESG (Environmental, Social, and Governance) reporting, understanding the calculation of total net new hires is crucial for companies aiming to measure and communicate their social impact. This metric, defined by the number of full-time equivalents (FTEs) joining the company, adjusted by departures and the effects of mergers and acquisitions, offers an overview of employment dynamics within the organization over a given year.

1. How to answer this question ?

First, gather three types of data:

1. New hires: The total FTEs that joined the company during the year, excluding those from mergers and acquisitions.

2. Turnover: The number of FTEs who left the company, excluding those related to mergers and acquisitions.

3. Variations resulting from mergers and acquisitions: The net variation in the number of employees directly resulting from mergers and acquisitions.

Then, calculate total net new hires using this formula: (New hires - Turnover) + Variations due to mergers and acquisitions.

2. Why is it important ?

Understanding this dynamic not only measures workforce growth or reduction but also evaluates the company's attractiveness in the job market and its stability. It's a key indicator for investors and stakeholders interested in the company's social performance.

3. Examples :

- A company hired 100 FTEs and recorded 50 departures (excluding effects of mergers and acquisitions). During the same period, it acquired another company, adding net 30 FTEs to its workforce. The total net new hires would then be (100 - 50) + 30 = 80 FTEs.

- Another company saw 120 new FTEs join its ranks, while 70 FTEs left the organization. There were no mergers or acquisitions affecting the number of employees that year. Thus, total net new hires amount to 120 - 70 = 50 FTEs.

These responses highlight a company's commitment to understanding and reducing its impacts on the natural environment, showing true awareness and action in favor of biodiversity.

IE 15.3. Total net new hires

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