Employee retention rate is an important metric for any organization to track. It helps to measure the percentage of employees who remain with the company over a certain period of time. In this article, we will discuss what employee retention rate is, when it is valuable to calculate it, and how to calculate it in Workday.
Employee retention rate is the percentage of employees who remain with a company over a certain period of time. It is a key metric that helps organizations to understand how well they are retaining their employees. A high retention rate indicates that employees are satisfied with their jobs and the company, while a low retention rate may indicate that there are issues that need to be addressed.
Calculating employee retention rate is important because it helps organizations to identify trends and patterns in employee turnover. By analyzing retention rate data, companies can identify areas where they need to improve in order to retain their employees. This can include improving employee benefits, offering better training and development opportunities, or creating a more positive work environment.
It is valuable to calculate employee retention rate at regular intervals, such as quarterly or annually. This allows organizations to track changes in retention rate over time and identify any trends or patterns. It is also valuable to calculate retention rate when there are significant changes in the organization, such as a merger or acquisition, or when there are changes in leadership or management.
Calculating retention rate is particularly important for companies that rely on skilled or specialized employees. In these industries, it can be difficult and expensive to replace employees who leave, so it is important to retain them as long as possible.
Calculating employee retention rate in Workday is a simple process. First, you will need to gather data on the number of employees who were employed at the beginning of the period and the number of employees who remained employed at the end of the period. You will also need to gather data on any employees who left during the period.
Once you have this data, you can calculate retention rate using the following formula:
Retention Rate = ((Number of Employees at End of Period - Number of Employees Who Left During Period) / Number of Employees at Beginning of Period) x 100
For example, if you had 100 employees at the beginning of the year, and 90 employees remained employed at the end of the year, with 10 employees leaving during the year, your retention rate would be:
((90 - 10) / 100) x 100 = 80%
Calculating employee retention rate in Workday is a valuable tool for organizations to track and analyze employee turnover. By understanding retention rate trends, companies can identify areas for improvement and take action to retain their employees.
Workday itself isn’t naturally geared towards letting you calculate complex metrics like Employee Retention Rate. As an alternative, teams typically use products like Arithmix to import data from Workday and build out dashboards.
Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Workday, combine it with data from other systems, and create calculations like Employee Retention Rate.
In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.
Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.
Calculating metrics like Employee Retention Rate is simple in Arithmix. Once you've created your free account, you’ll be able to import your Workday data, and use it to create natural language formulas for metrics like Employee Retention Rate.
Arithmix is designed to give you the power to build any calculations you want on top of your Workday data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.