Retention Rate is a key HR metric that measures the percentage of employees who remain with an organization over a specific period. It reflects workforce stability, employee satisfaction, and the effectiveness of retention strategies. A high retention rate indicates strong employee engagement, competitive compensation, and a positive work environment, whereas a low retention rate may signal high turnover, workplace dissatisfaction, or poor career growth opportunities.

Industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) closely monitor retention rates to reduce hiring costs, maintain operational efficiency, and enhance workforce productivity. Companies leverage HR analytics, employee engagement programs, career development initiatives, and competitive benefits to improve retention, reduce attrition, and foster long-term employee loyalty.