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1 Calculating Employee Retention Rates

Arun | 0 Posts

11 May, 2023 12:25

Hi everyone.

I'm new to this forum and apologize in advance if this has already been discussed. I assure you that I have searched the forum but could not find an specific to my query.

I am working on a dashboard for my organization and would like to calculate the Employee Retention Rate for specific period. There is a huge confusion with regards to the calculation especially when it comes to including New Joiners and Leavers count. Can someone please explain this to me so that i can implement this correctly to senior management ? For eg. do we really need to exclude the leavers count from the End of the Period headcount, assuming that end of any period headcount already excludes leavers ? Also, what about new joiners who have joined during the period ?

For example, what would be the correct Employee Retention rate for following counts:

Headcount start of the period: 112
Headcount end of the period: 145
New Joiners during the period: 33
Leavers during the period: 4

Thanks in advance !

1202 views

Liban | 0 Posts

12 May, 2023 10:32

Hi Arun,

A simple formula you can choose to use is;

Employee Retention Rate = ((E-N)/S)) x 100

Where:

E: Number of employees at the end of a period
N: Number of new hires during the period
S: Number of employees at the start of the period

So using your example above, the retention rate would be:

((145 - 33) / 112) x 100 = 100%

Hope that helps :)
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