1. Human Resources
  2. Employee Retention & Succession

Employee Retention


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.


(Number of employees at end of period - Number of employees hired during the period) / Number of employees at start of period x 100


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.