Learn which lifestyle benefits employees used most!
Employee retention refers to an organization's ability to keep its employees and prevent them from leaving their jobs voluntarily.
The employee retention rate is the percentage of an organization's employees that stay employed with the organization over a defined period of time.
To calculate employee retention rate, first define the period of time. Then, subtract the current number of employees from the number of new hires during the period. Then divide the result by the number of employees at the start of the period and multiply that by 100.
Here's what the formula looks like:
Employee Retention Rate (%) = ((Number of Employees at the End of a Period - Number of New Hires During the Period) / Number of Employees at the Start of the Period) × 100
High employee retention indicates that employees are satisfied, engaged, and motivated to stay with the company for a significant period of time. Conversely, low retention can suggest issues such as dissatisfaction, lack of opportunities, or a negative work environment.
There are a number of steps to improve your employee retention rate including:
1) Reassessing your current compensation and benefits package.
Many of the benefits that employers offer with good intentions like pet insurance or gym memberships can't possibly meet the needs of an entire workforce. The personalized aspect of employee perk stipends skyrockets utilization rates (our customers have seen rates as high as 90%!).
2) Providing opportunities for employees to receive recognition and rewards.
According to Zippia, more than half of employees report feeling adequately recognized by their employer for their contributions.