1. What is Employee Retention Rate?

The Employee Retention Rate measures the percentage of employees who remain with a company over a specified time period. It's a key HR metric that helps organizations understand their ability to retain talent.

2. How Does the Calculator Work?

The calculator uses the retention rate formula:

Where:

• Employees at End — Number of employees at the end of the period
• Employees at Start — Number of employees at the start of the period

Explanation: The formula compares the number of remaining employees to the original number, expressed as a percentage.

3. Importance of Retention Rate

Details: A high retention rate indicates employee satisfaction and organizational stability, while a low rate may signal problems with workplace culture, compensation, or management.

4. Using the Calculator

Tips: Enter the number of employees at the start and end of your measurement period. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good retention rate?
A: Generally, 90% or higher is excellent, 80-90% is good, and below 80% may indicate retention problems.

Q2: How does this differ from turnover rate?
A: Retention rate measures who stayed, while turnover rate measures who left. They're complementary metrics.

Q3: What time period should I measure?
A: Common periods are annual, but you can measure quarterly or for any relevant timeframe.

Q4: Should new hires be included?
A: Typically no - only count employees present at the start of the period.

Q5: How can we improve retention?
A: Focus on competitive compensation, career development, work-life balance, and positive workplace culture.