Employee Retention Rate Calculator is a ready-to-use excel template to calculate employee retention rate for companies on a yearly, half-yearly, quarterly and monthly basis. Employee Retention Rate is a very important HR metric regularly used by HR Professional.
What Is Employee Retention Rate?
Employee Retention is the ability of a company to retain its employees. Employee Retention Rate is the percentage of employees staying with any organization during a specific period. The higher the retention rate the better.
HR managers of big companies seek the best talent to fill their positions. Retaining these employees by satisfying them in their jobs is very important.
Regular checks on retention rate will help you take the necessary steps to retain(hold) the qualified and trained staff to your organization.
Formula To Calculate Employee Retention Rate
The formula to calculate the Employee Retention Rate is as Follows:
Retention Rate is the opposite of Attrition Rate. Retention Rate is the number of employees who have joined at the start of a specific period and have stayed with the organization during that period. Whereas, the attrition rate is the number of employees leaving the organization during a specific period.
Let us understand it with an example.
Company A has 86 employees at the beginning of 2017 and out of these 86 employees, 80 are still with the company at the end of the year. Thus, numerically the company has retained 80 employees out of the total of 86 employees that joined or were present at the start of the year.
Applying the retention Formula, 80 / 86 X 100 = 93.02 % Retention Rate
Now to calculate the Attrition Rate, 86 – 80 = 6 / 86 X 100 = 6.98 % Attrition Rate
You can use our ready template to calculate the attrition rate. Click on the link to download the Attrition Report Excel Template
Thus, 93.02 % staff remains with the company whereas only 6.98 % staff leaves the company during that year.
Employee Retention Rate Calculator Excel Template
To simplify the process of calculating retention rate, we have created a simple and easy Employee Retention Rate Calculator Excel Template with predefined formulas.
You can derive yearly, half-yearly, quarterly and monthly retention rate by just entering the strength of employees at the start and end of the period and it will automatically calculate the retention rate for you. This template can be useful to HR Professional, HR assistants, small business owners.
You can download other useful HR Metrics Templates like Employee Absent Rate Calculator, Job Vacancy Rate Calculator, Post Occupancy Rate Calculator, Offer Acceptance Rate Calculator, Offer Decline Rate Calculator, Promotion Rate Calculator and many more from our website.
Let us understand how to use this Calculator in details.
How To Use Employee Retention Rate Calculator Excel Template
This template consists of 4 sections:
- Yearly Retention Rate
- Half-Yearly Retention Rate
- Quarterly Retention Rate
- Monthly Retention Rate
1. Yearly Retention Rate
Organizations usually measure Retention rate on yearly basis. To find the yearly retention rate you need to enter only 2 details:
- Number of employees at the beginning of the year
- Number of employees Previously joined Still with Company at the end of the year.
Applying the above-given formula, it will automatically calculate the yearly retention rate for you.
2. Half-Yearly Retention Rate
Bigger or medium-sized organizations have more employees and have too much movement in their workforce. They usually measure Retention rate on a halfyearly basis.
Similar to the Yearly basis, here also you need to provide only two details and it will calculate the retention rate for you.
3. Quarterly Retention Rate
You can also calculate the retention rate on a quarterly basis with this template. Enter the number of employees at the beginning and end of the quarter. The results will be displayed in the cell below.
4. Monthly Retention Rate
Big MNCs with too many employees measure retention on regular basis. This template will also help you calculate the monthly retention rate. Enter the data in light blue fields and the results will be displayed in the cell below.
Importance of Retaining Employees
- Low retention shows the good health of your organization.
- Reduces recruiting expenses.
- Saves time for recruiting and training new employees.
- Increased Productivity. As the staff knows the work and is doing the same for long, it takes less time then a new employee and eventually increases the productivity.
- When you don’t provide security, appreciation and another required atmosphere to the employees, it will encourage them to look for a job and might end up working for your competitors.
- Loss of business, loss of revenue and loss of business secrets.
In addition to the above, you can also download many templates in the following categories:
- HR and Payroll Templates
- Financial Analysis Templates
- Financial Statement Templates
- US Federal Income Tax Templates
- Health & Fitness Templates
- India GST Templates
- UAE VAT Templates
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