Birch Index

Europe's 500 focuses on employment creation. Companies who have nominated themselves and successfully met the criteria and verification process are ranked according to the David Birch Employee Growth Index.

This index gauges a firm's job creation performance, combining both relative and absolute growth, and is used to rank the companies. By taking the product of absolute and relative job growth, the Birch Index displays and allows for the comparison of the employment-creation power of enterprises of different sizes.

The BIRCH Index is calculated as follows:

BIRCH Index Score

=

(Employment in Application year*)-(Employment 2 years prior)

X

(Employment in Application year)/(Employment 2 years prior)

*Employment in Application year refers to the Full Time Employees (FTEs) at close of most recent fiscal year

Example: if a company is applying in 2015, and its employment grew to 800 employees in 2014 from 200 in 2012, the Birch Index would be: (800-200)x(800/200)=2400

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