What Is Retention Rate?
Retention rate is a percentage that is used to determine employees who stay in an organization within a certain time. It is an indicator of stability in the workforce, satisfaction among employees, and HR policy effectiveness. High retention rates mean that there is a good organizational culture and involvement, whereas low retention rates could be an indication of dissatisfaction or lack of management or competition.
To monitor the quality of hiring, enhance employee experience, and lower costs of replacement, companies monitor retention. It is an important HR measure that is applied in strategic workforce planning.
Examples of Retention Rate
Career development programs helped the company to increase its retention rate.
HR also monitors the retention rate every quarter to determine the trends in turnover.
High retention rate will save on the recruitment and onboarding costs.
Synonyms
- Employee Retention Metric
- Staff Retention Ratio
- Workforce Stability Rate
- Employee Stay Rate
- Retention Performance Indicator
