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KPI022 | Officer retention rate V3.0
Key Performance Indicator
This KPI expresses the officer retention rate within the company.
| Interpretation | This KPI expresses the company’s ability to retain officers within the organization. The KPI shows the ratio between terminations and the size of the DOC holder's officer pool. The KPI is vulnerable to changes in fleet size. |
| Notes | The formula has some limitations as the beneficial termination is a subjective term. The formula is also influenced by acquisitions/sales of ships. In case the fleet is increased the number of officers will increase and the indicator will improve, and the other way if the fleet is reduced the indicator will deteriorate. |
| Unit | % |
| Scope | DOC holder |
| Calculation period | 12 month rolling year |
Formula
[formula]KPI022 = 100\% - \frac {(PI041 - (PI056 + PI016))} {PI006}\times 100\%[/formula]
| PI006 | Number of officers employed |
| PI016 | Number of beneficial officer terminations |
| PI041 | Number of officer terminations from whatever cause |
| PI056 | Number of unavoidable officer terminations |
Example
| PI041 | Number of officer terminations from whatever cause | = 23 |
| PI056 | Number of unavoidable officer terminations | = 5 |
| PI016 | Number of beneficial officer terminations | = 1 |
| PI006 | Number of officers employed | = 250 |
| KPI Value | Officer retention rate | = 93.2% |
Rating Formula
[formula] \begin{align} \displaylines { KPI_{Value}\\ KPI_{MinReq} = 70\\ KPI_{Target} = 95 } \end{align} [/formula] [formula] KPI_{Rating} = 100 \times \frac {(KPI_{Value} - KPI_{MinReq})} {(KPI_{Target}-KPI_{MinReq})} [/formula]
Rating Example
| KPI Value | = 93.2% |
| KPI MinReq | = 70% |
| KPI Target | = 95% |
| KPI Rating | [formula]=KPI_{Rating} = 100 \times \frac {(KPI_{Value} - KPI_{MinReq})} {(KPI_{Target}-KPI_{MinReq})} = 100 \times \frac {(93.2 - 70)} {(95-70)} = 93[/formula] |
External references
INTERTANKO Officer Retention Formula. (Corrected) Version 2 Dated 12th March 2008.
The formula is modelled upon the Abelson adjusted turnover rate "Abelson M (1996) Turnover cultures and turnover audits" in Human Resources Management. The formula was adjusted by INTERTANKO to create a retention rate formula, as opposed to a turnover rate formula.