--- title: "Employee Retention Rate - HR Glossary | Faqtic" description: "Retention rate measures how many employees stay over a set time. SMEs track it to understand turnover, plan hiring, and improve engagement strategies. High rete" lang: en json-ld: | [ { "@context": "https://schema.org", "@graph": [ { "@type": "Organization", "@id": "https://faqtic.co/#organization", "name": "Faqtic", "alternateName": "Faqtic - The Factorial Agency", "url": "https://faqtic.co", "logo": { "@type": "ImageObject", "url": "https://faqtic.co/lovable-uploads/4e1622b4-0e3c-495f-9b90-c9ca18d0fc27.png" }, "description": "Certified Factorial implementation partner for European SMEs. 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Retention rate measures how many employees stay over a set time. SMEs track it to understand turnover, plan hiring, and improve engagement strategies. High retention reduces costs and builds culture. ### Why it Matters for SMEs - Reduces hiring costs - Improves culture - Builds stability ### Example in Practice Factorial reports retention rates by team. ### Frequently Asked Questions Common questions about employee retention rate ### ### How is it calculated? ### ### Good retention? ### ### Track with software? ### Explore More HR Terms Continue building your HR knowledge with our comprehensive glossary [Browse All Terms](/glossary) ### Related Terms Explore these related HR concepts [ #### Absence Management Absence management covers policies, processes, and tracking for all time away from work. It ensures fairness, visibility, and compliance while helping SMEs understand patterns and plan coverage. Software removes guesswork and manual tallying, reducing disputes and improving employee trust. ](/glossary/absence-management) [ #### Absence Management Policy An absence management policy defines how unplanned absence is handled. SMEs use it to create clarity, fairness, and compliance. ](/glossary/absence-management-policy) [ #### Absence Policy An absence policy defines rules for sickness, lateness, and unplanned leave. SMEs use it to set expectations and reduce disputes. ](/glossary/absence-policy) [ #### Absence Rate Absence rate measures time lost to sickness or other unplanned absences. SMEs track it to manage productivity and wellbeing. ](/glossary/absence-rate) [ #### Absenteeism Absenteeism is when employees miss work beyond planned leave. High absenteeism can indicate disengagement, health issues, or management problems. SMEs track it to manage productivity and wellbeing. ](/glossary/absenteeism) [ #### AI Candidate Matching AI candidate matching compares CVs with job descriptions to find best-fit candidates. SMEs use it to reduce screening time. ](/glossary/ai-candidate-matching) [Browse All Terms](/glossary) ### Related articles from our blog - [![How Faqtic and Factorial Help UK SMEs Improve Employee Retention Rates](https://images.unsplash.com/photo-1673515336391-c63034623475?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3w4MTA5OTd8MHwxfHNlYXJjaHwxfHxob3clMjBmYXF0aWMlMjBhbmQlMjBmYWN0b3JpYWx8ZW58MHwwfHx8MTc4NjYwNjY4M3ww&ixlib=rb-4.1.0&q=80&w=1080) How Faqtic and Factorial Help UK SMEs Improve Employee Retention Rates Discover how Faqtic and Factorial empower UK SMEs to boost employee retention. Learn to effectively implement HR tools and reduce turnover in just weeks! ](/blog/how-faqtic-factorial-help-uk-smes-improve-employee) READY TO TRANSFORM YOUR HR? ## Let's discuss how Faqtic & Factorial can scale your business Join hundreds of European companies who trust Faqtic to optimize their HR operations with Factorial. 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