Employee Retention Rate

You’ve probably noticed that many of your friends hate their jobs. While you might think that your company is exempt, it’s very likely that you have Employee Retention Rate who are ready to quit at a moment’s notice!

Employee retention is a serious problem for any company. If your employees are willing to seek greener pastures after only a few short months, then you can expect your company’s reputation to dwindle.

So how do you ensure that you keep track of your employee retention rate?

Here’s how to calculate the employee retention rate:

Calculating Employee Retention Rate With a Formula

You can use the following formula to calculate the employee retention rate at your business.

  • Write down the number of full-time employees at your business during the past 12 months
  • Subtract this number from the number of employees who left each quarter

Once you come up with the 4 values, add them together and divide them by 4. You’ll now get the average of how many employees leave your company each quarter.

If you have an average of at least 10% you know that your business is in danger. While you can expect employees to leave at any time, try not to exceed 5% per quarter.

You can expect this average to fluctuate throughout the year. However, if you’re consistently staying below 10% then you’re on the right track.

Now let’s look at a few quick strategies for how you can improve your employee retention rate. 

How to Improve Employee Retention

Your first step should be to look at your workplace and admire the design. If you can’t do this, then it’s time for a remodel.

You might find that a quick remodel of the business premises can motivate your employees even more. You can learn more about how to remodel your business.

The next step is to ensure more time off and especially paid vacations. It’s likely that your employees feel burned out from continuous work. One of the reasons for The Great Resignation is that many employees felt overworked at their jobs.

You should also take care to recognize your employee’s achievements. A simple gesture now and then to express your gratitude can go a long way.

Giving them an occasional award or certificate will also keep their loyalty. If you can offer them a bonus payment this will also make them consider staying with your company longer.

A final strategy is to provide your employees with greater autonomy. Many employees want to transition to freelance work because it gives them more freedom. You can change their mind if you offer them more independence.

Now You Know How to Calculate Employee Retention Rate

Now that you know how to calculate employee retention rate you can check if this is something you have to worry about at your business.

Keep track of the number of full-time employees you’ve had in a given year. Calculate the percentage of how many of them leave each quarter to see if your company needs to improve its employee retention rate.

Follow our best practices to ensure you keep your employees at your company. Offer greater pay, time off, awards, and greater autonomy to your employees.

You can find more great articles on running a business on our blog!

By Alin

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