Retention Rate is the percentage of new hires who remain employed with an organisation after a specified period, typically measured at intervals such as 30, 60, or 90 days.
In a recruitment agency context, the Retention Rate serves as a key performance indicator (KPI) to assess the effectiveness of the hiring process. By analysing this metric, agencies can identify trends in employee turnover and evaluate the quality of placements. A high retention rate often indicates successful matching of candidates with the right roles and company cultures, while a low rate may signal issues in the recruitment process or workplace environment.
Understanding Retention Rate is crucial for both recruitment agencies and their clients, as it directly impacts overall productivity and costs associated with hiring. Agencies can use this data to refine their recruitment strategies, ensuring they attract candidates who are more likely to stay long-term. Additionally, it provides valuable insights for employers to enhance their onboarding processes and employee engagement initiatives, ultimately fostering a more stable workforce.
Run the whole desk on one platform
Gangal is all-in-one recruitment software for UK & Ireland agencies — ATS, CRM, compliance, timesheets and payroll — with Remi, our AI recruiter. Flat pricing from £499/mo (£999 with Remi). Free trial, no card.
Start your free trial