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- How do you measure effectiveness of retention?
- What are the theories of employee retention?
- Is higher or lower retention rate better?
How do you measure effectiveness of retention?
How do you measure employee retention? Employee retention is the percentage of employees who remain at a company for a fixed time period. To calculate, divide the number of employees who stayed during a specific time period by the number of employees at the start of time period and then multiply by 100.
What are the theories of employee retention?
The resource-based employee retention theory (RBV)
Another important employee retention theory is the resource-based theory, which argues that employees who feel most useful to their companies are likely to be most loyal. This theory proposes that by making employees feel valuable, you can reduce retention issues.
Is higher or lower retention rate better?
Most companies calculate retention rates annually, but you can measure the rate in small periods to get faster results. The higher the retention rate, the better. If it's 80%, that means only 20% of employees leave the business during a given period.
