Terminations
Count of company-initiated employee separations during the period — performance-management exits, layoffs, redundancies, and for-cause terminations. The numerator of `hr.involuntary_turnover_rate` and the inverse of `hr.voluntary_exits` on the attrition page. Common pitfall: bundling layoff events (often one-time, board-known) with normal performance-management churn (steady-state, manager-driven). Best practice is to break out layoffs in `hr.talent_challenges` narrative and reserve this number for the recurring stream. — HR KPI, I'mBoard-authored (editorial tier).
I'mBoard-authored (editorial tier)
No public third-party standard anchors this KPI yet, so I'mBoard authors and maintains the definition — transparently labeled as editorial tier. See the ontology methodology for the published vs editorial tier system and the back-attribution workstream.
Rogue ID: hr.terminations
Type: Number
Domain: HR
Definition
Count of company-initiated employee separations during the period — performance-management exits, layoffs, redundancies, and for-cause terminations. The numerator of hr.involuntary_turnover_rate and the inverse of hr.voluntary_exits on the attrition page. Common pitfall: bundling layoff events (often one-time, board-known) with normal performance-management churn (steady-state, manager-driven). Best practice is to break out layoffs in hr.talent_challenges narrative and reserve this number for the recurring stream.
Formula
Count of company-initiated employee separations within the reporting period — performance terminations, RIFs, role eliminations, and for-cause exits. Excludes voluntary resignations (those are `hr.voluntary_exits`) and contractor-end events.Why it matters
A direct read on performance-management cadence and any organizational restructuring activity. Spikes correlate with strategy pivots, post-fundraise rebalancing, or recovery from over-hiring — each implies different board narratives.
How to interpret
Sustained termination volume above ~1% of headcount per month (excluding announced RIFs) typically signals hiring-quality issues, performance-bar drift, or comp-band misfit (industry folk-wisdom, not citation-grade). One-time RIF events should be reported separately in hr.board_actions with the headcount delta noted.
Calculation policy
How an AI agent should compute this KPI from messy company data. Free-text rules consumed at reasoning time — not a deterministic DSL. The most common ways to get this wrong are listed under Common miscomputations.
Inclusion rules
- Count of COMPANY-INITIATED employee separations within the reporting period — performance terminations, layoffs / RIFs, role eliminations, and for-cause exits (period-flow, standard period boundary).
- Mirror image of
hr.voluntary_exits: if the company drove the separation, it counts here.
Exclusion rules
- Employee-initiated resignations and retirements — those are
hr.voluntary_exits. - Contractor-end / engagement-expiry events — not employees.
- Announced one-time layoff (RIF) events when the board has adopted the convention of breaking them out separately in
hr.talent_challenges/hr.board_actions— keep this number for the recurring performance-management stream so the trend is not swamped by a single event.
Required inputs
- Separation records flagged company-initiated with reason code (performance / RIF / for-cause) and last-day date.
- A separate tally of any announced RIF headcount delta for the period.
- Team / level attribution.
Data-source priority
- HRIS offboarding records with initiator and reason code.
- Board-action / RIF documentation for one-time events that should be reported separately.
Edge cases
- Layoff event: report the RIF headcount delta separately (board-known, one-time) and reserve this metric for steady-state performance churn — bundling them hides both signals.
- For-cause immediate termination: counts in the period of the last day even with no notice.
- Severance / garden-leave: the separation date for counting is the employment-end date, not the date severance payments stop.
Validation checks
- Converts to
hr.involuntary_turnover_rate; the count and rate must share the same separation set. - Should lag
hr.performance_watch_countby roughly a quarter when PIPs are converting — a spike with no prior PIP build-up suggests a RIF that belongs in narrative. - Voluntary + involuntary exits reconcile against the period headcount drop with
hr.new_hires.
Common miscomputations
- Bundling one-time layoff headcount into the recurring termination stream — distorts the performance-management trend the board reads here.
- Classifying a managed-out exit as voluntary, which simultaneously overstates voluntary and understates involuntary turnover.
- Counting contractor-end events as terminations.
Related KPIs
hr.involuntary_turnover_ratehr.performance_watch_counthr.headcount_changehr.talent_challengeshr.board_actions
Source
I'mBoard editorial — authored and maintained by I'mBoard, first published 2026-04-01. No third-party standard is cited for this KPI; when one emerges, the definition is back-attributed and promoted to the published tier (a minor version bump). Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.
Stage relevance
| Company stage | Priority |
|---|---|
| Series A | Recommended |
| Series B | Recommended |
| Series C+ | Recommended |
| Public | Recommended |
Suggested for stages: Series A, Series B, Series C+, Public.
Default owning functions
- HR
Machine-readable
- This KPI as JSON:
/api/ontology/hr/terminations.json - All HR KPIs:
/api/ontology/hr.json - Full catalog:
/api/ontology/index.json
Talent Highlights
Free-form narrative on notable hires, promotions, internal moves, and other positive organizational developments the board should be aware of. The "good news" companion to `hr.talent_challenges`. Common pitfall: listing every internal move and burying the genuinely important signals (key executive hires, strategic team-build milestones). Best practice is 3–5 bulleted items per period, each tied to a board-relevant outcome or risk-it-mitigates rather than a generic celebration. — HR KPI, I'mBoard-authored (editorial tier).
Total Contractors
Count of active 1099 contractors, consultants, agencies-of-record, and similar non-employee labor at period end. Tracked separately from `hr.total_headcount` because the cost structure, retention dynamics, and classification risk are different. Common pitfall: under-counting agencies that bill on a project basis without per-head visibility — these often slip out of HR systems and surface only in finance AP detail. A contractor-to-FTE ratio above ~30% sustained typically warrants a classification audit and a deliberate "build vs rent" board conversation. — HR KPI, I'mBoard-authored (editorial tier).