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Validation: Values must be greater than or equal to 0. Use a consistent period (e.g., monthly/quarterly/annual). Exclude contractors if you’re measuring FTE retention only.
Once you enter values and click Calculate, the tool displays the percentage of starting employees who remained with the company through the period.
Higher retention preserves institutional knowledge, lowers hiring costs, and stabilizes delivery. Declining retention often signals issues in role fit, compensation, management, or workload.
Note: Turnover rate is the complement of retention (approx. 100% − retention%, assuming simple headcount dynamics).
Example 1 — Quarterly Retention (Given)
Example 2 — Annual Retention with Growth
Use these as directional guides; establish your internal baselines for decisions.
Sector / Team Type | Typical Dynamics (no fixed %) |
Tech / SaaS | Competitive market; retention varies by role & growth pace. |
Retail / BPO / Support | Higher churn from shift work; stabilize via scheduling & incentives. |
Manufacturing / Operations | Stable where safety & wages are strong; spikes during expansions. |
Professional Services | Retention is tied to utilization, career ladders, and client mix. |
Healthcare / Education | Sensitive to staffing ratios and burnout, manager support is critical. |
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Answers to Frequently Asked Questions
Use (Employees at End − New Hires During Period) ÷ Employees at Start × 100.
Pick a consistent period (month/quarter/year) and use start, end, and new hire counts for that period only.
No—retention tracks whether starting employees are still with the company, regardless of role changes.
Adjust start/end counts to exclude structural changes, or compute retention separately for pre- and post-events for clarity.
Decide on the scope upfront (FTEs only vs. all workers) and apply it consistently across all periods.
Turnover is roughly 100% − retention%, but advanced turnover calculations may use average headcount and separations.
Select a starting cohort (e.g., hires in 2024) and track what % remain at each milestone (30/90/180/365 days).