Struggling with Employee Retention? How Do You Calculate the Retention Rate?

Please, can anybody tell me the formula for retention rate?

What retention rate are you looking for? Employee retention? Customer retention?

Autumn Jane

Employee Retention Rate can also be known as Employee Turnover Rate. When Employee Turnover Rate is used as a KPI, basically, you WANT some turnover, and whilst you don't want to REWARD a manager for firing people, you don't want to penalize them for the poor performers leaving. The formula to calculate annual retention rate or employee turnover rate is: Sum of staff departures over the year divided by Sum of Monthly Staff Headcount.

Regards, Autumn Jane

Please correct me if I am wrong here:

Retention Rate Calculation

- Total number of employees = x
- Number of employees quit/fired = y
- Total number - number quit/fired = z

The formula is: (x - y) = z

To find the retention percentage: (z / x) * 100 = retention %

For example:

- 100 employees total
- 25 quit/fired
- (100 - 25) = 75
- (75 / 100) * 100 = 75%

This results in a 75% retention rate.

Thank you,

Regards,
Thanooj