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Board OntologyHR

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_count by 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.
  • hr.involuntary_turnover_rate
  • hr.performance_watch_count
  • hr.headcount_change
  • hr.talent_challenges
  • hr.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 stagePriority
Series ARecommended
Series BRecommended
Series C+Recommended
PublicRecommended

Suggested for stages: Series A, Series B, Series C+, Public.

Default owning functions

  • HR

Machine-readable

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