Employee Retention Rate (ERR)
Percentage of employees who remain with the organization over a specific period
FORMULA
ERR = ((Beginning Headcount - Departures) / Beginning Headcount) × 100
Alternate Calculations
Inverse of Turnover
100 - Turnover RateBy Department
((Dept Begin - Dept Departures) / Dept Begin) × 100What is Employee Retention Rate?
Employee Retention Rate measures the percentage of your workforce that stays with the organization over a defined timeframe. It directly reflects organizational health, culture quality, and manager effectiveness.
High retention reduces hiring costs, maintains institutional knowledge, and indicates strong employee satisfaction. Industry benchmarks vary: tech typically targets 85%+, while other sectors range from 75-90%.
Chart
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273begin · JunEmployee Retention Rate
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Sample Data
| month | begin | departures | retention |
|---|---|---|---|
| Jan | 250 | 5 | 98 |
| Feb | 254 | 4 | 98.4 |
| Mar | 258 | 3 | 98.8 |
| Apr | 263 | 4 | 98.5 |
| May | 268 | 3 | 98.9 |
| Jun | 273 | 2 | 99.3 |
Required Data Columns
Beginning HeadcountDepartures