Home
Back
Employee Retention Rate Formula:
| From: | To: |
The Employee Retention Rate formula calculates the percentage of employees retained during a specific period. It helps organizations measure their ability to retain talent and identify potential issues with employee turnover.
The calculator uses the Employee Retention Rate formula:
Where:
Explanation: The formula calculates the percentage of employees retained by comparing the net employee count (end employees minus those who left) against the starting employee count.
Details: Tracking employee retention rate is crucial for understanding workforce stability, identifying retention challenges, and developing effective HR strategies to improve employee satisfaction and reduce turnover costs.
Tips: Enter the number of employees at the start of the period, number of employees who left during the period, and number of employees at the end of the period. All values must be non-negative integers.
Q1: What is a good employee retention rate?
A: Generally, a retention rate above 90% is considered good, though this varies by industry. Rates below 85% may indicate retention issues that need attention.
Q2: How often should retention rate be calculated?
A: Most organizations calculate retention rates quarterly or annually, but it can be measured for any period depending on organizational needs.
Q3: What's the difference between retention rate and turnover rate?
A: Retention rate measures the percentage of employees who stay, while turnover rate measures the percentage who leave. They are complementary metrics.
Q4: Should new hires be included in the calculation?
A: Yes, new hires during the period are typically included in the end count but not in the start count, providing a comprehensive view of workforce changes.
Q5: What factors can affect employee retention rate?
A: Factors include compensation, work environment, career development opportunities, management quality, work-life balance, and company culture.