Understand your organization's ability to keep its employees over a specific period with this calculator.
function calculateRetentionRate() {
var employeesAtStart = parseFloat(document.getElementById("employeesAtStart").value);
var employeesAtEnd = parseFloat(document.getElementById("employeesAtEnd").value);
var employeesHired = parseFloat(document.getElementById("employeesHired").value);
var resultDiv = document.getElementById("result");
if (isNaN(employeesAtStart) || isNaN(employeesAtEnd) || isNaN(employeesHired) ||
employeesAtStart < 0 || employeesAtEnd < 0 || employeesHired employeesAtEnd, indicating an issue in data or logic, but for calculation purposes we'll cap it at 0)
if (retainedEmployees < 0) {
retainedEmployees = 0;
}
if (employeesAtStart === 0) {
resultDiv.innerHTML = "Employee retention rate cannot be calculated if there were 0 employees at the start.";
return;
}
var retentionRate = (retainedEmployees / employeesAtStart) * 100;
resultDiv.innerHTML = "Employee Retention Rate: " + retentionRate.toFixed(2) + "%";
}
Understanding Employee Retention Rate
Employee retention rate is a critical metric that measures the percentage of employees who remain with a company over a specific period. A high retention rate indicates a healthy work environment, effective management, and competitive compensation and benefits, all of which contribute to a stable and productive workforce. Conversely, a low retention rate can signal underlying issues such as poor employee engagement, lack of growth opportunities, inadequate training, or a toxic company culture. The costs associated with high employee turnover – including recruitment, onboarding, training, and lost productivity – can be substantial, making retention a key focus for sustainable business growth.
The formula used in this calculator is a common method to assess retention:
Retention Rate (%) = [(E – H) / S] * 100
Where:
E is the number of employees at the end of the period.
H is the number of employees hired during the period.
S is the number of employees at the start of the period.
This formula focuses on the employees who were with the company at the start and are still there at the end, excluding any new hires brought in during that timeframe. For example, if a company starts with 100 employees, hires 10 new employees during the quarter, and ends the quarter with 95 employees, then 85 employees (95 end – 10 hired) are from the original group. The retention rate would be (85 / 100) * 100 = 85%. This metric is vital for human resources professionals and business leaders to evaluate the effectiveness of their retention strategies and identify areas for improvement.