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What Is Retention Rate?

Retention rate is the share of a starting group of employees still employed at the end of a period.

An educational definition from the HR glossary. Explore related terms below, or jump into the resource center to go deeper.

Definition

Retention rate is the share of a starting group of employees still employed at the end of a period.

Why it matters

It isolates how well you hold on to an existing population, distinct from overall movement.

Examples

Illustrative example. Retention rate = (employees who stayed ÷ employees at the start) × 100.

For the practical detail behind this term, follow the related metric, template and resources below.

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For informational purposes only. This is an educational, plain-language definition — not legal, tax, financial or compliance advice and not an official definition. Terms and obligations vary by organisation and jurisdiction. Numeric examples are simple, placeholder-based illustrations, not data. Confirm specifics with qualified professionals.
Related concepts

Related glossary terms

Keep exploring the HR vocabulary.

Glossary

Employee Retention

Employee retention is how well an organisation keeps the people it wants to keep over time.

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Turnover Rate

Turnover rate expresses separations during a period as a percentage of average headcount for that period.

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New-Hire Retention

New-hire retention measures how many recent hires are still employed after an early-tenure window.

Open
Measure it

Related metrics & calculators

HR metric

Employee Retention Rate

Employee retention rate measures how much of a starting group of employees you keep over a period.

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Related resources

The clusters that put this concept into practice.

Lifecycle

Employee lifecycle

The full employee journey, stage by stage.

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FAQ

Frequently asked questions

What is Retention Rate?

Retention rate is the share of a starting group of employees still employed at the end of a period.

Why does Retention Rate matter?

It isolates how well you hold on to an existing population, distinct from overall movement.

How is Retention Rate measured?

It connects to the HR metric linked on this page, where you can find the formula and how to read it. This glossary entry is an educational definition, not a data source.