Retention rate measures the percentage of employees who stayed in the company in the chosen time frame.

Calculation steps:

1. choose time frame
2. identify the number of employees working at the start of chosen time frame
3. identify the number of employees who left during the chosen time frame

Employee turnover is complementary to retention rate. Get the full picture and analyze both metrics.

It is important to know also the characteristics of the employees who remain in the company. Create profiles of this employees and compare them to the profiles that you need in your company.

Example:

Time frame: 1st of January to 31st of March

Employees working at the start of the time frame: 100

Employees who left in the time frame: 10

Retention Rate = ((100 - 10)/100)*100 = 90%