Calculate Retention and Experience: Ultimate Guide

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Employee retention is essential to ensure that employees remain loyal to your company. It influences employee satisfaction and engagement. Do know how to calculate retention? Here’s how.

If an employee is happy with work, the retention rate increases, and turnover decreases. Besides, keeping the best talent from leaving can positively impact company performance.

One of the most common strategies for retention is employee experience. While attracting top talent requires strategic planning and execution, ensuring retention requires employee experience management.

Also, in recent years, there has been a lot of focus on the employee experience in business schools and job interviews.

Effective employee retention strategies also include creating a culture that aligns with the organization’s vision and values.

And ensuring opportunities for professional growth, offering benefits such as perks, learning opportunities, and recognition programs. Providing feedback to employees that ensures they feel valued and supported, etc.

However, one strategy companies are following more often than ever before is employee experience management. This strategy focuses on how an organization creates the best working environment for its employees so that they stay committed to their jobs long-term.

Also, to determine the success of the new employee training program, we need to calculate retention rates for the past year

In this blog, we will discuss what employee retention is. Why is it important? How to calculate retention? And the key metrics you should keep in mind to measure its success!


To calculate retention and improve employee experience, a business should focus on creating a positive work environment, fostering inclusiveness, offering incentives, providing training and development, and maintaining effective communication. Measuring employee experience can be done through anonymous surveys, exit interviews, engagement snapshots, performance evaluations, turnover tracking, and employee loyalty metrics. (With formulae)

Calculate Retention
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Employee perspective on experience and retention

Employee retention and employee experience are two of the most vital factors that lead to a company’s success. In recent years, HR leaders closely watch employee retention and experience as they are the key drivers of business performance.

Furthermore, a good onboarding process is vital for a positive employee experience. The first few weeks of a new employee’s time can set the tone for the rest of their career. So, a well-designed onboarding process introduces the new hire to the company culture, team members, and day-to-day operations. It makes the employees feel more comfortable in the company.

Also, company culture plays a major role in employee retention and experience. A recent study by Gallup found that a strong company culture can boost employee retention and create a healthy work-life balance. That is why HR leaders should focus on creating an inclusive work environment that values employee wellness and professional development.

Why is employee retention important?

Maintaining a strong workforce through employee retention drives business growth and profitability.

It measures the number of employees who stay with a company beyond their initial tenure.

Also, it reduces training and development expenses and lowers employee exit rates, positively impacting business operations.

Additionally, employee retention improves employee morale, productivity, and customer loyalty.

PS: Find out if you must attend the next meeting.

Employee experience and its importance?

Retention is crucial for business success, and employee experience plays a critical role. 

Providing employees with fulfilling and satisfying experience that surpasses expectations results in happy, motivated, and engaged employees.

Moreover, engagement leads to a deeper connection to the company and improved performance.

Furthermore, the link between employee retention and engagement is strong, with engaged employees more likely to remain with the company for extended periods.

Therefore, measuring employee engagement highlights areas for improvement, leading to higher employee retention rates.

You must also know how to calculate retention.

Ways to improve employee experience and enable retention calculation

Here are some ways to improve employee retention:

  • Create a positive work environment that prioritizes job satisfaction, growth opportunities, and the well-being of employees.
  • Foster an inclusive culture where all employees feel valued and included.
  • Implement incentives and recognition programs to motivate employees and reward high performance.
  • Invest in employee training and development opportunities to enhance skills and knowledge.
  • Provide competitive compensation and benefits packages.
  • Encourage open and effective communication between employees and management.
  • Offer flexible work arrangements, such as remote work options or flexible scheduling.
  • Provide opportunities for employee involvement in decision-making processes.
  • Foster a supportive and collaborative workplace culture.
  • Regularly gather and act on employee feedback to continually improve the workplace.

How to measure the employee experience?

There are several proven methods to measure the employee experience.

  1. Bursting with Feedback

    Unleash the power of anonymous employee surveys to capture vivid experiences, assess job satisfaction, and pinpoint areas ripe for improvement.

  2. Departing Insights

    Uncover the reasons behind employees’ departures through targeted exit interviews that shed light on the employee experience.

  3. Engagement Snapshot

    Keep a pulse on employee satisfaction by measuring engagement levels through regular surveys, illuminating areas for improvement.

  4. Performance Perspectives

    Gain valuable insight into job satisfaction and employee experiences through performance evaluations.

  5. Turnover Tracking

    Track the rate of employee departures to identify potential problems with the employee experience.

  6. Attendance Analysis

    Highlight potential issues with the employee experience by monitoring attendance and absence rates.

  7. Customer Feedback

    Gather customer insights on their interactions with employees, painting a clearer picture of the employee experience.

  8. Social Sentinel

    Stay ahead of the curve by monitoring mentions of the organization on social media and online forums, providing valuable insight into the employee experience.

  9. Employee Loyalty Metric

    Measure employee satisfaction and loyalty with the Employee Net Promoter Score (eNPS), a crucial metric for the employee experience.

Calculate Retention and Experience Metrics

To accurately assess the success of our employee retention strategy, we need to regularly calculate the retention rate of our workforce.

Turnover rate

It is the percentage of employees who leave the company over a given period.

The formula for turnover rate is (number of employees who left the company / average number of employees) x 100.

Time to fill a position

It is the time it takes to fill an open position after an employee has left the company.

The formula for time to fill a position is (number of days from when a position was opened to when it was filled) / (number of positions filled).

Retention rate

It is the percentage of employees who remain with the company over a given period.

The formula for retention rate is (number of employees who remained with the company / average number of employees) x 100.


The average length of time that employees have been with the company.

The formula for tenure is (total years of service for all employees) / (number of employees).

Attendance and punctuality

Regular attendance and punctuality are indicators of job satisfaction and employee engagement.

The formula for attendance rate is (number of days attended / number of scheduled work days) x 100.
The formula for punctuality rate is (number of on-time arrivals/number of scheduled work days) x 100.

Promotion and advancement opportunities

Measuring the number of employees promoted or advanced within the company can indicate their satisfaction with career growth opportunities.

The formula for 'promotion rate' is (number of employees promoted / number of employees eligible for promotion) x 100.
The formula for 'advancement rate' is (number of employees who advanced within the company/number of employees) x 100.

Benefits utilization

Measuring the usage of employee benefits, such as health insurance or paid time off, can help determine the effectiveness of these programs in retaining employees.

The formula for benefits utilization rate is (number of employees who used a particular benefit/number of employees eligible for that benefit) x 100.


In conclusion, retaining employees is an indispensable aspect of business success and merits top priority from organizations.

Also, the employee experience is a formidable factor in determining employee retention. Organizations can foster it by cultivating a favorable work environment, providing growth prospects, giving attractive compensation packages, and taking in employee feedback consistently.

Measuring the efficacy of employee retention initiatives is possible by monitoring pivotal metrics such as turnover rate, time taken to fill a position, retention rate, employee satisfaction, and engagement levels.

Therefore, by paying heed to employee experience management, organizations can enhance employee retention, elevate business performance, catalyze growth, and optimize profitability.

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