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KPI · HR
Employee retention rate: formula and example.
Employee retention rate is the percentage of employees who were employed at the start of a period and are still employed at the end. People who joined during the period are excluded. It shows how well you hold on to the people you already have.
Employee retention rate formula
Employees employed at both start and end of the period ÷ employees at the start × 100%
Worked example
On 1 January 2025 Acme Groothandel had 140 employees. On 31 December 2025, 126 of them were still employed. The employee retention rate is 126 ÷ 140 × 100% = 90.0%.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A higher rate means you keep more of your existing people. Retention and turnover are not mirror images: retention only follows the group that was there at the start, while turnover also counts new starters who leave. Compare by department and by year, and focus on groups you particularly want to keep, such as specialists.
Pitfalls with employee retention rate
- Including people who joined during the period in the numerator or denominator.
- Treating retention as 100% minus turnover; that only holds when nobody joins.
- Showing retention for very small groups, such as a team of three, where one leaver is identifiable and has an outsized effect.
SQL & DAX
Calculating employee retention rate in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT COUNT(*) AS headcount_at_start,
COUNT(*) FILTER (WHERE termination_date IS NULL OR termination_date > DATE '2025-12-31') AS still_employed,
ROUND(100.0 * COUNT(*) FILTER (WHERE termination_date IS NULL OR termination_date > DATE '2025-12-31')
/ NULLIF(COUNT(*), 0), 1) AS retention_pct
FROM employees
WHERE hire_date <= DATE '2025-01-01'
AND (termination_date IS NULL OR termination_date > DATE '2025-01-01');Retention % =
VAR StartDate = MIN ( 'Date'[Date] )
VAR EndDate = MAX ( 'Date'[Date] )
VAR Starters = FILTER ( ALL ( Employees ), Employees[HireDate] <= StartDate && ( ISBLANK ( Employees[TerminationDate] ) || Employees[TerminationDate] > StartDate ) )
VAR Stayed = FILTER ( Starters, ISBLANK ( Employees[TerminationDate] ) || Employees[TerminationDate] > EndDate )
RETURN DIVIDE ( COUNTROWS ( Stayed ), COUNTROWS ( Starters ) )In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate employee retention rate?
Take the number of employees at the start of the period and count how many of them are still employed at the end. Divide the second number by the first and multiply by 100%. People who joined during the period are left out.
Is retention rate the same as 100% minus turnover?
No. Turnover counts all leavers against the average headcount, including new starters who left quickly. Retention only follows the group that was there at the start. When you hire a lot, the two figures diverge.
Over what period should you measure retention?
Usually a year, because shorter periods show few leavers and fluctuate a lot. A separate measure for new starters over their first year is also useful. Keep the period fixed so you can compare years.
Further reading
- KPI libraryHR KPIs: formulas and examplesHR KPIs cover staffing, absence, turnover and recruitment. This is sensitive data: show it only to people who are allowed to see it, and do not report on groups so small that individuals can be identified.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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