20 Metrics in 20 Days- Day 11: Internal Hire Rate

Day 11 in our series of 20 consecutive posts on HR metrics: Internal Hire Rate


Internal Hire Rate is the percentage of employees that moved (“hired”) into a new role within the company over some period of time.


$latex {\frac{\#\ Internal\ Moves\ in\ period}{Average\ Headcount\ in\ period}}&s=3$

Additional Considerations

  • Internal moves, whether promotions or lateral moves, are not that common so it makes sense to calculate this on at least a quarterly basis rather than monthly.
  • Depending on your organization, you may wish to consider filtering out “demotions”. However, in some instances, those demotions may just reflect an opportunity for some to move into a new area of the business and continue their development rather than true a demotion because of, say, subpar performance.

Why You Should Care

The internal hire rate can shed light on how well companies prepare employees for and take advantage of new opportunities.


Like most other metrics, there is no magic number when it comes to internal hires. There are, however, some steps you can take to provide context around that number and better understand your organization:

  • Examine trends on internal moves over a 2-3 year period
  • Break down your internal hire by different business areas to spot any meaningful differences
  • Compare the number of internal moves that occur within a business area v. those occurring between areas. Where are the movers coming from? Where are they going?

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