What is Employee Retention Rate?
Share of employees retained over a period.
How to calculate it
Calculate Employee Retention Rate as: (Employees stayed / Employees at start) × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
108 of 120 starting employees stay -> 90% retention.
Example 2
108 of 120 employees present at the start of the year are still there at year-end -> 90% retention, in line with a healthy benchmark.
Why it matters
Employee retention rate is the share of employees retained over a period and is a stability indicator and cost saver. High retention preserves knowledge, sustains team cohesion and lowers hiring costs. Failing to account for new hires in the calculation distorts the figure.
Benchmark context
90%+ annually is generally considered good, but benchmark against your industry, since some sectors structurally run higher churn.
Common pitfalls
Not accounting for new hires.
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