What is Retention Rate?
Retention Rate, also known as Employee Retention Rate, simply stands for the ability of an organization to retain employees within the organization. When the retention rate of an employee is measured, it is termed Employee Retention Rate, which stands for the percentage of workers/employees remaining or being retained in a company/organization for a fixed amount of time. It is basically a measure of statistics.
The decision to stay is in the hands of the employee, which highly depends on the employer and the overall strategies implemented by the organization to be successful in retaining its employees.
Employee Retention Rate Formula
Employee Retention Rate = [(Total number of employees - Total number of employees who have left ) / Total number of employees] * 100.
Several organizations follow different methods to retain employees as their employee retention strategy. The first and foremost thing to do is to keep the employees happy and satisfied at work. The other strategies may include improvement in the aspects of:
- Salary structure
- Company policies
- Culture of the company
- Bonuses and benefits
- Office perks
