Following is how the retention rate is calculated in our dashboard:
Retention Rate: (Number of Active Employees remaining from Employees active at the beginning of the period /Number of Employees active at the beginning of the period) * 100
Following is the formula used for the turnover rate:
Turnover Rate = (Number of Exits/Avg. Number of active Employees during the period) * 100
Avg. Number of active Employees during the period = (Employees at the Beginning + Employees at the end) / 2
You can check the numbers by unhiding the calc sheet.
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Example:
If you have the end date entered as 31-Dec-2023, the following is the yearly retention rate and turnover rate calculated:
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Retention Rate:
Number of Active Employees remaining from Employees active at the beginning of the period = Number of employees who have a Hire date on or before 31-Dec-2022 and exit date after 31-Dec-2023
Number of Employees active at the beginning of the period = Number of employees who has a hire date on or before 31-Dec-2022 and exit date after 31-Dec-2022
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Turnover Rate:
Employees who left = Number of employees who has exit date on or between 01-Jan-2023 to 31-Dec-2023
Employees at the beginning = Number of employees who has a hire date on or before 31-Dec-2022 and exit date after 31-Dec-2022
Employees at the end = Number of employees who has a hire date on or before 31-Dec-2023 and exit date after 31-Dec-2023