Answers the question: how many employees worked in the company during a certain time frame?
Formula:
(number of employees who stayed in the company in the reference period/number of employees at the start of the reference period) * 100
Example:
100 employees were working at the start of the period while at the from these employees only 90 were still in the company. The retention rate in this case will be: 90/100*100=90%
What should we measure, Employee turnover or Retention? Both. Retention refers to employees that stayed in the company while turnover refers to those who left. Both have blind spots and looking at both of them can bring to light different situations.
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