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March 17th, 2023 · 6 min read

Employee retention metrics: The numbers you need to know (and track)

blog header graphic for employee retention

The importance of revisiting which employee retention metrics you’re tracking

7 most important retention metrics for your talent management strategy

 

Employee retention rate

employee retention rate formula

  

What is a good employee retention rate?

 

Turnover rate

 

employee retention rate formula

What is a good turnover rate for employees?

 

Employee turnover cost

  • Costs of hiring and onboarding 
  • Costs of resources and technology used for recruitment, training and onboarding processes
  • Losses associated with diminished productivity as time and resources are redirected to filling critical vacancies 
  • Costs associated with benefits or severance for the departing employees

Employee satisfaction

Average employee tenure

 

Absence rate

employee absence rate formula

What is a good employee absence rate?

 

Employee lifetime value

 

Retention metrics for employee onboarding

 

Employee satisfaction in the first 30-60-90 days

  • How do employees feel about their relationship with your organization at 30-60-90 days? 
  • Does this feeling change over the course of this time period? If it does, does it trend negatively or positively?
  • What factors of the new employee experience are the most influential? 
     

Employee turnover in first 30-60-90 days

  • What percentage of new employees are leaving the company within this critical time period? 
  • What percentage of employees are retained past these same time periods?
  • What distinguishes the experiences of employees that stayed with the company longer and the ones who left? Are there noticeable trends?

Retention metrics for learning and development

 

Percentage of employees enrolled in learning programs

 

Learner engagement and satisfaction

  • For employees taking part in a formal training or workforce education program, how are they progressing?  
  • Are participating employees meeting or exceeding their learning objectives?
  • How are participating employees performing on the job? Are they applying their new skills and knowledge to their existing roles?
  • How do your employees feel about the range, accessibility and relevance to current and future career prospects offered by your menu of learning opportunities?
  • How do participating employees feel their learning experience and skill-building are setting them up for success on the job?

 

Employee performance 

  

Employee retention rate for employees participating in L&D programs vs. those who are not

Start tracking the right retention metrics

You can address talent development challenges