Employee retention rate is a metric that measures the percentage of employees who remain employed over a specific period. This vital measurement allows organizations to gauge the success of their human resource practices. This includes things such as talent employee development and engagement initiatives. A high employee retention rate indicates that your organization is effectively managing the needs of its workforce—leading to greater loyalty and productivity, and a better overall working performance. A low employee retention rate could well signal potential issues within your team. This could include a lack of effective communication, inadequate compensation, or a work environment that doesn’t nurture team members’ development.
