Retention rate is a metric used to measure the percentage of employees who remain with an organization over a specific period of time. It is typically calculated by taking the number of employees who stayed with the company during the period, dividing it by the number of employees at the start of that period, and multiplying by 100 to express it as a percentage. A high retention rate indicates that the company is successful in keeping employees, while a low retention rate may suggest issues such as job dissatisfaction, poor company culture, or limited opportunities for career growth. Retention rate is a key indicator of employee satisfaction and organizational stability.