Employee retention refers to the ability of an organization to keep its employees. Employee retention can be represented by a simple statistic; however, many relate employee retention to the efforts employers use in an attempt to retain employees in their workforce. Employee retention is usually represented as a percentage. For example, an annual retention rate of 80% indicates that an organization kept 80% of its employees that year and lost 20%.
It’s natural for organizations to experience turnover. Also, some industries are prone to higher turnover rates than others due to wages, difficulty of work, and benefits they traditionally offer to employees. These industries include:
- Staffing – 352% turnover rate
- Cleaning professionals – 75-400% turnover rate
- Logistics – 50% turnover rate
- Call centers – 33% turnover rate