What is Employee Retention?
Employee retention is an organisation's ability to keep its employees over time, measured as the percentage of employees who remain with the company over a given period. High retention means fewer people leaving; low retention (high turnover) means the organisation is constantly losing and replacing staff. Retention is influenced by compensation, career development, management quality, work-life balance, company culture, and the overall employee experience.
Why it matters
Turnover is one of the most expensive problems an organisation faces. Replacing an employee costs between 50% and 200% of their annual salary depending on the role. Beyond the direct cost, turnover disrupts teams, erodes institutional knowledge, and damages morale. Retention starts long before an employee considers leaving. It starts with hiring the right people for the right roles and continues with onboarding, development, and culture. Great recruitment is the first line of defence against turnover.
How Teamtailor helps
Teamtailor improves retention by helping you hire the right people in the first place. Structured interviews reduce mis-hires, a strong employer brand attracts culturally aligned candidates, and seamless onboarding ensures new hires feel welcomed and productive from day one.
