Calculator
Retention Rate Calculator
Measure your employee retention rate to understand workforce stability and plan for continuity. Retention rate shows the percentage of employees who remain with your organization. Always calculated on an annual basis for consistency.
Inputs
Results
Annual Retention Rate
92.0%
Good
Starting Employees
100
Employees Retained
92
Attrition Rate
8.0%
Strong Retention
Key Metrics
Annual Retention Rate
92.0%
Good performance
Employees Retained
92/100
8 employees left
Attrition Rate
8.0%
Departure percentage
Your retention rate of 92.0% is competitive. Focus on maintaining current strategies while identifying the small group of departing employees to understand any patterns.
Recommendations
- →Conduct stay interviews with key employees to understand what's working
- →Analyze the small number of departures to identify any patterns
About Retention Rate
Retention Rate is calculated as: (Employees Retained / Starting Employees) × 100
Annualization: Regardless of your measurement period (monthly, quarterly, half-yearly, or annual), the retention rate is always calculated and presented on an annualized basis for consistent year-over-year comparison.
A higher retention rate indicates greater workforce stability, lower recruitment costs, and better organizational continuity. Industry benchmarks typically range from 80-95% annually.
Retention Rate benchmarks:
- • ≥95% - Excellent (best in class)
- • 90-94% - Good (competitive)
- • 80-89% - Fair (industry average)
- • <80% - Needs attention (above average turnover)
Retention Rate Calculator
Now, analyze and optimize employee retention with the help of the Employee Retention Rate Calculator by SkillSauce. Easily calculate the annualized retention rate and generate insights that will lower employee attrition and the cost of recruitment.
This calculator will enable you to calculate how many of your workforce have remained within your establishment over a set timeframe. All output data is annualized, meaning that no matter how your data is set for measurements, there will be consistent yearly comparisons.
What you'll get instantly
- •Annual Retention Rate (%)
- •Employees Retained
- •Attrition Rate (%)
- •Performance benchmark (Excellent, Good, Fair, Needs Attention)
- •Actionable insights and recommendations
How to Calculate Retention Rate
Enter:
- •Starting Employees – Headcount at the beginning of the period
- •Employees Who Left – Total exits during the period
- •Measurement Period – Monthly, quarterly, half-yearly, or annual
The calculator automatically adjusts and displays an annualized retention rate for fair comparison.
Retention Rate Formula
Retention Rate (%) = (Employees Retained ÷ Starting Employees) × 100
Where:
Employees Retained = Starting Employees − Employees Who Left
Why annualization matters
Even if you measure retention monthly or quarterly, SkillSauce standardizes results annually. This avoids misleading conclusions and aligns with global HR benchmarks.
Example Retention Rate Calculation
Scenario:
- Starting Employees: 100
- Employees Who Left: 8
- Measurement Period: Annual
- Employees Retained: 92
Retention Rate:
92 ÷ 100 × 100 = 92%
Attrition Rate: 8%
Interpretation: A 92% retention rate is considered Good and competitive across most industries.
Retention Rate Benchmarks
Use these industry benchmarks to evaluate performance:
≥ 95% – Excellent
Best in class
90–94% – Good
Competitive
80–89% – Fair
Industry average
< 80% – Needs attention
High turnover risk
A higher retention rate signals stronger workforce stability, better engagement, and lower recruitment costs.
Why Retention Rate Matters
Employee retention directly impacts:
- •Recruitment and onboarding costs
- •Team productivity and morale
- •Knowledge continuity
- •Employer brand strength
- •Long-term business growth
High attrition often indicates gaps in hiring quality, role fit, engagement, or performance management.
Retention Rate vs Attrition Rate
Retention Rate
measures how many employees stay
Attrition Rate
measures how many employees leave
Both metrics together provide a complete picture of workforce health.
When to Use a Retention Rate Calculator
- •Quarterly or annual HR reviews
- •Workforce planning and budgeting
- •Comparing departments or regions
- •Evaluating hiring and onboarding effectiveness
- •Preparing leadership or board reports
Improve Retention with SkillSauce
Retention doesn't start after hiring—it starts before the offer is made.
SkillSauce helps organizations improve retention by:
- •Reducing bad hires with objective skill assessments
- •Using AI-powered interviews to evaluate real-world performance
- •Eliminating bias in screening and decision-making
- •Matching candidates accurately to role requirements
- •Providing data-driven hiring insights
Better hiring decisions = higher retention rates.
About This Retention Rate Calculator
SkillSauce's Retention Rate Calculator is built for HR leaders, recruiters, founders, and people managers who want clear, actionable workforce insights—without spreadsheets or manual formulas.
Use it alongside SkillSauce's assessments, AI interviews, and analytics to build a more stable, high-performing workforce.
Calculate retention. Identify risk. Hire better. Retain longer—with SkillSauce.
Frequently Asked Questions
Find answers to common questions about employee retention rate and workforce stability.
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