Employee Retention | Meaning and Definition

What is Employee retention?

It is the practice through which the employer ascertains that the employee(s) remain with the company and do not think of quitting the job. There is a definite yet variable retention rate reflected in every organization. The retention rate indicates the percentage of the number of employees who, during a fixed period, did not quit and remained with the particular organization. Retention is a popular practice that every organization follows. The idea is to provide suitable benefits such as perks, compensations, bonuses, and other rewards to encourage them to continue working for the organization. 

Employee Retention vs. Employee Turnover

It is retention in the organization, whereas Turnover is the exact opposite of Retention. Employee Turnover is defined as the percentage of employees who quit the company over a certain period. For better results, a company always focuses on maximizing the retention rate and essentially minimizing the turnover rate.