Struggling with Employee Retention? Let's Discuss Effective Strategies

Dear All,

Could anybody provide me with the formula for employee retention?

Regards, Minal Bagwe

Employee retention is a crucial aspect of any organization, and understanding the formula for calculating it is essential. Thank you for your inquiry, Minal.

But what about the candidates that we have recently recruited, which will be a part of the total number of employees? Please let me know.

Regards,
Yash

Hey,

Here is the retention rate formula:

% Retention Rate (RR) = 100 - [{S - (UT + BT)} / AE x 100]

Where:
RR = Retention Rate
S = Total number of terminations from whatever cause (this means the total number of employees that have left the company for any reason)
UT = Unavoidable Terminations (e.g., retirements or long-term illness)
BT = Beneficial Terminations (e.g., sometimes those staff who leave provide benefits to the company by virtue of leaving, such as underperformers)
AE = The average number of employees working for the company during the same period as calculated; this should be any period of 12 months.

Hope you will find this useful.

-- Priyanka

Thank you, Priyanka, for providing a solution to this query. I hope Minal is satisfied with your formula. Just to clarify one thing - is this the only method of calculating the retention rate?

Thank you.