Retention (Employee)
Keeping valuable employees in organization.
Formula
Employee Retention Rate = (Employees at End of Period ÷ Employees at Start) × 100
Real World
John Lewis Partnership retains staff by offering profit-sharing bonuses and calling employees 'Partners', giving them a stake in the business — contributing to above-average retail retention rates.
Exam Focus
Use the retention rate formula in data-response questions and link low retention directly to increased recruitment and training costs.
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