Retention rate is a metric that refers to a company’s ability to “retain” consumers, or in this case, employees. The contrary being attrition rate, or as we more commonly know it, turnover rate. The attrition rate is the pace at which people leave a company whether by force or voluntarily. Prior to accepting a job offer, obtaining insight into these metrics could provide clarity on a number of qualities (or incompetence’s) that the company may possess. Allowing you to make a more educated decision to either accept or deny a role. This blog will uncover the untold story of a company’s retention rate and what assumptions can safely be made upon conclusion.

Discovery

Uncovering a prospective employer’s retention rate is an added tool in your belt to ensure you are making an informed decision that will ultimately bring you success. The retention rate and attrition rate are opposite. For example, if a company has a 90-day retention rate of 90%, its 90-day attrition rate would be 10%. Discovering one Is discovering both.

It’s unprofessional to walk into an interview and ask about their retention/attrition rate outright. If you’re interviewing for a large, publicly traded company, an online search of “mass layoffs” could give you the answer you’re looking for. A LinkedIn search could be just as (if not more) telling, offering a chance for you to search current and previous employees, as well as their time with that company.

More than 50% of all organizations globally claim to have difficulty retaining some of their most valued employee groups. It’s not always simply the number of employees who leave, but the types of employees who leave, and the reasons they are leaving may deserve a closer look.

In addition, when considering retention/attrition rates, it’s important to consider the industry in which you are applying. A low retention rate in certain industries does not require a second look – being the nature of the industry. The U.S. Bureau of Labor Statistics shows industries with the lowest retention rates include, Construction, Manufacturing, Professional and Business Services, Healthcare, etc.

Assumptions

There are plenty of safe assumptions that can be made upon the discovery of a high or low retention rate.

High Retention Rate:

Positive company culture

Inclusive and diverse

Desirable pay & benefits package

Opportunity for career growth

Low Retention Rate:

Limited growth opportunities

Negative company culture

Lack of appreciation/acknowledgment

Burnout

A company could possess the above qualities in any combination. Some companies may have a positive culture and limited growth opportunities. Learning a company’s retention rate, whether high or low is another way to determine if a role is your best fit.

For further assistance in your job search or your search for qualified candidates, please contact us at (518) 275-4816.

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