Employee Retention
Percentage
The percentage of employees who remain with the company over a specified period, typically a year. It provides insights into the organization's ability to maintain its workforce.
High retention rates typically indicate that employees are satisfied and the company offers a conducive environment for growth and productivity. Low retention can signal underlying issues and result in increased costs related to hiring and training replacements.
Formula
(Number of employees at end of period - Number of employees hired during the period) / Number of employees at start of period x 100
Example
If a company starts with 100 employees, hires 20 new ones, and ends with 105 employees, the retention rate is 85%.
Typically, startups can have a retention rate of anywhere between 60% to 85%. Larger companies often see retention rates between 85% to 95% or even higher.