How to Calculate Year to Date Employment Retention
High employee turnover results in high costs for most employers. New employee recruitment, hiring costs, lost productivity, training costs and other associated expenses add up as a direct result of employment turnover, according to Sigma Assessment Systems Inc. Calculating employee retention rates allows employers to identify what percentage of employees remain with the company during a one-year period. Understanding the retention rate allows a human resources department or business owner to see what changes could be made to decrease employee turnover.
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Instructions
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1
Calculate the average monthly employment for the year by adding the total number of employees for each month and dividing by 12.
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2
Count the number of employees who left the company during the year.
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Subtract the number of departing employees from the average monthly employees. For example, you have a monthly average of 100 employees and 32 quit during the year. Subtract 32 from 100 for a total of 68 . The total amount of employees retained for the year is 68.
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Divide the total number of employees retained for the year by the number of average monthly employees. Using the example, 68 divided by 100 equals 0.68.
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Multiply by 100 for the employee retention rate. By multiplying 0.68 you reach an employee retention rate of 68 percent for the year-to-date.
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Tips & Warnings
The year-to-date can start at any date during the year, as long as you end 365 days from the start date.
The U.S/Bureau of Labor Statistics recommends substituting the average monthly employee number with the number of employees on the 12th of the month to find the monthly retention rate.
To calculate the turnover rate, or percentage of employees leaving the company, divide the number of employees leaving by the average monthly employment, then multiply by 100.
