IE 15.1. Net organic new hires

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Understanding and reporting net organic new hires is crucial for any company committed to transparency towards its stakeholders. This figure not only reveals the organic growth of the company but also its ability to retain its talents. Let’s see how to articulate this data in the annual report.

1. How to answer this question ?

To calculate net organic new hires, start by counting the number of full-time equivalents (FTEs) that joined your company during the reporting year, excluding those acquired through mergers or acquisitions. Then subtract the number of FTEs who left the company, excluding those who left due to a divestiture or acquisition. The result represents the net number of FTEs added to your company organically, reflecting internal growth without the influence of external strategic movements.

2. Why is it important ?

Net organic new hires provide valuable insights into the company’s health and HR strategy. A positive balance indicates stable growth and attractiveness, while a negative balance could reveal retention challenges. This information is essential for investors and stakeholders assessing the company’s sustainability and ethical practices.

3. Examples :

– A technology company recorded a net balance of 25 FTEs, reflecting significant expansion of its operations without resorting to external acquisitions.

– A service company saw a net balance of -10 FTEs, suggesting retention challenges that might need addressing in its talent management strategy.

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.

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