Employee retention is an organization’s ability to keep its employees and limit turnover. With turnover rates at a 10-year high-51% of workers are either watching for or actively seeking new jobs-employers must closely track retention metrics to spot and address issues before valuable talent walks out the door.
High retention rates signal a stable, satisfied workforce, while low retention rates can be costly and disruptive, leading to increased hiring and training expenses, lost productivity, and weakened team morale1.
Key Employee Retention Metrics to Track
1. Employee Retention Rate
This is the percentage of employees who stay with the company over a given period. A rate between 80% and 90% is generally considered positive1.
2. Retention Rate by Group
Breaking down retention by department, job level , or ethnicity helps identify disparities and target areas for improvement, ensuring a more equitable workplace1.
3. Voluntary Turnover Rate
This measures employees who leave by choice, highlighting issues with culture or engagement. High voluntary turnover may indicate deeper problems1.
4. Involuntary Turnover Rate
Tracks layoffs and terminations, shedding light on hiring practices and performance management effectiveness.
5. Talent Turnover Costs
Replacing employees is expensive-up to 200% of a manager’s salary, 80% for technical roles, and 40% for frontline workers. Calculating these costs helps justify investments in retention.
6. Average Employee Tenure
Shows workforce stability. A higher average tenure suggests loyalty and experience, while sudden drops may signal emerging issues.
7. Absenteeism Rate
High absenteeism can be a sign of disengagement or dissatisfaction. The industry average is around 3.2%.
8. Attrition Rate
The overall reduction in workforce, regardless of reason. Tracking this alongside retention and turnover gives a full picture of workforce dynamics.
Qualitative Metrics:
Not all retention risks show up in spreadsheets. Monitor:
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Employee engagement and satisfaction (via surveys and feedback)
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New employee satisfaction (especially in the first two years)
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Flight risk (predictive analytics and manager feedback)
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Job satisfaction (role-specific contentment)
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Employee happiness (overall well-being and mood)
Why Tracking Retention Metrics Matters
Collecting and analyzing these metrics allows organizations to:
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Spot trends and recurring turnover causes
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Benchmark against industry standards
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Assess the impact of new HR programs or policies
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Identify early warning signs of turnover
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Quantify the financial benefits of keeping talent1
Summary
Tracking and improving employee retention is essential for any organization aiming to reduce costs and build a high-performing, loyal workforce. By focusing on the right metrics, companies can identify issues early, make informed decisions, and create a more satisfying workplace for everyone.
If you’re looking for a partner to help you hire and keep the best employees while cutting costs, Chris Attaway Consulting can help. We deliver what employers and employees want most: better pay, improved benefits, and a more engaged workforce-all at no net cost to you or your team. Let’s make retention your competitive advantage.