There’s no doubt that employees are a valuable resource. After all, they are the heart and soul of every company, big or small. That’s why it’s critical to keep a close eye on your employee retention rate. The employee retention rate is the percentage of employees who stay with a company over a period of time. And while countless factors contribute to this figure – from high-intensity company culture to even rigged employee award shows – tracking certain metrics can help you identify potential issues early on and take steps to keep your best workers.
So, what are the key employee retention metrics you should be tracking? Here are three to get you started.
Employee Engagement Levels
Engaged employees are more likely to stick around so it’s a good idea to keep tabs on your employees’ engagement levels.
There are many ways to measure employee engagement, but one of the simplest and most effective is the Employee Net Promoter Score (eNPS). To calculate an employee’s NPS, you simply ask them how likely they are to recommend your company to a friend or family member on a scale of 0 to 10.
You can then break down your employees’ responses into three categories:
- Promoters (9-10): These are your most engaged employees. They’re passionate about your company and are likely to stick around for the long haul.
- Passives (7-8): These employees are satisfied with their job but could be tempted to leave for a better offer.
- Detractors (0-6): These are your least engaged employees and are likely to leave in the near future.
A second metric to track is absence rates.
There are several reasons why employees may be absent, from personal issues to genuine health concerns. Whatever the reason, it’s important to keep tabs on absence rates so you can identify any potential issues early on. For example, a high absence rate during winter may point to seasonal affective disorder (SAD).
To track absence rates, simply multiply the number of absent days/number of available workdays in a period by 100. You can then break down absences by type, such as sick days, personal days, and vacation days.
Involuntary Turnover Rates
Involuntary turnover is when an employee leaves a company against their will. In contrast, voluntary turnover is when an employee leaves a company of their own accord, such as quitting or retiring.
Involuntary turnover can be caused by a number of factors, from layoffs to poor job performance. Once again, it’s important to track your company’s involuntary turnover rate so you can identify any harmful patterns.
To calculate your company’s involuntary turnover rate, simply divide the number of employees who were involuntarily terminated in a given period by the average number of employees. For example, if you have an average of 100 employees and 10 of them are involuntarily terminated in a given year, your involuntary turnover rate would be 10%.
High employee retention is critical for any business. By tracking metrics like employee engagement levels, absence rates, and turnover rates, you can identify potential issues early on and take steps to keep your best workers happy and engaged.