Result
Retention rate
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Retention rate = employees who stayed through the end ÷ employees at the start × 100%. Unlike turnover rate, this tracks a specific group of people who were on staff at the start — not the total number of departures against average headcount.
That's exactly why 100% − turnover rate doesn't generally equal retention rate: turnover rate's denominator is average headcount (which includes people who joined during the period), while retention rate's denominator is a fixed starting cohort. These answer different questions: "what share of the whole staff turned over" versus "how many of the people who were here at the start are still here."
Retention rate is especially useful for tracking specific cohorts — employees hired in a given quarter, or key specialists — to see how stable the team is over the long run, rather than just comparing total headcount on two dates.