KPI022 | Officer retention rate V4.0

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	Average number of officers employed
PI016	Number of beneficial officer terminations
PI041	Number of officer terminations from whatever cause
PI056	Number of unavoidable officer terminations

Ranking calculation example

Step 1: Calculate KPI value

PI006	Number of officers employed	= 250
PI016	Number of beneficial officer terminations	= 1
PI041	Number of officer terminations from whatever cause	= 23
PI056	Number of unavoidable officer terminations	= 5
[formula] KPI022_{Value} [/formula]	[formula] = 100\% - \frac {(PI041 - (PI056 + PI016))} {PI006}\times 100\% [/formula]	[formula] = 100\% - \frac {(23 - (5 + 1))} {250}\times 100\% [/formula]	[formula] = 93.2 [/formula]

Step 2: Calculate percentile rank by comparing KPI value against other ships with the same criteria. We assume that another 99 (100 in total) participate in the ranking with the same criteria and our ship has position 33 and you are the only ship in that rank.

Step 3: Calculate the percentile rank by capturing the count of all participant below your rank (cl). The frequency of ships in your same rank (fi). The total number of ships in the ranking segment (N).

[formula] KPI022_{Percentile Ranking} = \frac{cl+05*fi}{N} * 100 = \frac{67+0.5*1}{100} * 100 = 67.50 [/formula]

Interpretation: Based on the above example, we could say that, when it comes to KPI022 Officer retention rate, this ship belongs in the 67.50th percentile of the ships that are being compared with based on its ranking criteria in the respective quarter.

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.