People and HR

Employee retention rate

  • People and HR

Definition

The percentage of employees who stay with an organisation over a period.

Example

185 of the 200 people employed at the start of the year still being there gives 92.5% retention.

For your role

Choose your role to see what this term means in your work.

Why it matters

Keeping good people protects knowledge and saves hiring costs.

Where it is used

HR reports and people strategy plans.

How to calculate it

Employees still employed at end ÷ employees at start × 100

Worked example

185 of the 200 people employed at the start of the year still being there gives 92.5% retention.

Definitions vary. Some exclude people who joined during the period, and others measure over different time frames. Check how your organisation calculates it.