How to Calculate Staff Retention Rate

Staff Retention Rate Calculator

Measure your organization's ability to keep its talent.

New hires are excluded from the retention calculation to focus on the original cohort.

Calculation Result

function calculateStaffRetention() { var startCount = parseFloat(document.getElementById('startEmployees').value); var endCount = parseFloat(document.getElementById('endEmployees').value); var hiredCount = parseFloat(document.getElementById('newHires').value); var resultDiv = document.getElementById('retentionResult'); var output = document.getElementById('retentionOutput'); var summary = document.getElementById('retentionSummary'); if (isNaN(startCount) || isNaN(endCount) || isNaN(hiredCount)) { alert("Please fill in all fields with valid numbers."); return; } if (startCount <= 0) { alert("The number of employees at the start must be greater than zero."); return; } // Standard Formula: ((End Count – New Hires) / Start Count) * 100 var stayed = endCount – hiredCount; if (stayed = 90) { text += " Excellent! Your retention rate is high, indicating a healthy workplace culture."; } else if (retentionRate >= 70) { text += " Good. Your retention is stable, though there may be room for improvement in engagement."; } else { text += " Attention Needed. A retention rate below 70% often suggests issues with job satisfaction or management."; } summary.innerHTML = text; }

How to Calculate Staff Retention Rate

Staff retention rate is a critical KPI (Key Performance Indicator) for HR departments and business owners. It measures the percentage of employees who remain with an organization over a specific period, typically a fiscal year or quarter.

The Staff Retention Formula

Retention Rate = [(Number of Employees at End of Period – New Hires) / Number of Employees at Start of Period] x 100

By subtracting new hires from the ending headcount, you are isolating the "original cohort." This allows you to see how many of the people who were there on Day 1 are still there on the Last Day.

A Practical Example

Imagine your tech startup has the following data for the year 2023:

• Start Count (Jan 1st): 50 employees
• End Count (Dec 31st): 55 employees
• New Hires during the year: 15 employees

Step 1: Calculate how many of the original 50 stayed. (55 total at end – 15 new hires = 40 original employees stayed).

Step 2: Divide by the start count. (40 / 50 = 0.80).

Step 3: Multiply by 100. The Retention Rate is 80%.

Retention vs. Turnover: What's the Difference?

While often used interchangeably, they measure different things:

• Retention Rate: Measures the percentage of "stayers." It tracks the stability of your workforce.
• Turnover Rate: Measures the percentage of "leavers." It includes everyone who exited, including those who were hired and left within the same period.

Why High Retention Matters

Low retention is expensive. Studies show that replacing an employee can cost anywhere from 50% to 200% of their annual salary when accounting for recruiting, onboarding, training, and lost productivity. High retention rates generally correlate with higher morale, better customer service, and stronger institutional knowledge.