Employee retention calculator

Calculate the employee retention rate: the share of the starting team still employed at the end of the period.

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How the formula works

Retention rate = people still employed ÷ headcount at the start × 100. The people still employed are those who were in the starting team and are still there at the end. New joiners are not in either number.

What the number means

72 of the 80 people who were there at the start are still there. That is 90%. The eight who left are the loss from that original team. People who joined during the period do not raise this rate. A company can have strong retention of the original team and still be growing fast.

Worked examples

72 of 80 still there

72 ÷ 80 × 100.

90%. Eight people from the starting team left.

Everyone stayed

80 ÷ 80 × 100.

100%

Questions

Why not 100% minus the turnover rate?

Turnover uses average headcount and every leaver. Retention uses only the starting team. New hires change the average without changing the starting team, so the two percentages do not add to 100.

Do internal transfers count as leaving?

Not if they are still in the group you are measuring. If the group is one department and they moved to another, they left that department. Say which group the two numbers describe.

What is a good retention rate?

Higher means more of the starting team stayed. Whether that is healthy depends on the work. Compare it with the same team last year before you treat one number as a target.

See also

Stayers are people who were there at the start and still there at the end.