Understanding Employee Retention Rate: How Do You Calculate It?

Hi,

Can someone tell me how the "employee retention rate" is calculated?

Regards,
Ehtesham

Dear Ehtesham,

Attached is a worksheet for the calculation of Retention Rate.

Regards,
Raghav V

Hi Amit,

That is a good one for Attrition Rate. But the query was on "Retention Rate". :)
If you can add to what I have posted on "Retention Rate" that would be good.

Regards,
Raghav V

I came across another formula for the turnover rate which goes like this:

Number of leavers/average number employed = turnover rate

For example, 12/{(64+56)/2} * 100 = 20%

Where:
- 64 = number employed at the beginning of the period
- 56 = number employed at the end of the period
- 20 = average turnover rate per period

Is this formula different from that of the attrition rate? Because if we put both formulas with the same figures, we are getting different results.

Please advise.

Hi Paru,

I wanted to know, for my clear understanding, what is the purpose of calculating the retention rate? How does this information help us understand what needs to be worked on?

Cheers,
Paru