WHAT IS THIS KPI? Retention Rate measures the ability of an employer to retain hired talent within the organisation
WHY IS THIS METRIC IMPORTANT? Retention Rate is an important KPI for all organisations as staff churn is a primary driver of open vacancies and as a result and, as a result drives, other direct recruitment costs. There an immediate correlation between the number of unwanted vacancies and the overall cost of talent acquisition.
Strong retention has many other benefits. It indicates positive morale in the workforce which itself directly correlates with productivity. There is reduced knowledge loss within the organisation caused by losing key staff and less inefficiency caused by open vacancies. It also avoids the negative commercial impact of new staff members taking time to reach full productivity.
While there are many factors that impact Retention Rates, it all starts with the hiring process. Attracting high quality individuals who are well informed about both the company they are joining and he role they are performing is critical. As is making sure that they have a positive introduction to the firm through the recruitment journey and on-boarding process.
To read more about how to measure recruitment performance in your organisation download this report.