Analytics · HR glossary

Retention Rate

Retention rate measures how much of a starting employee group remains at the end of a period. A common formula divides retained members of that group by its starting size.

By SmallHRTools · How we write definitions

Example

If 90 of the 100 employees present at the start of the year remain at year-end, retention is 90%, excluding later hires from that cohort calculation.

What to keep in mind

Retention is not always 100 minus a separately reported turnover rate because denominators and populations can differ. State the cohort, dates and treatment of internal transfers or other movements.

Put it into practice

Retention rate calculator

Further reading

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