Why a Company's Retention Rate Is a Great Indicator

Whether you are new to the job hunt or an experienced veteran, we all know searching for a new job can be challenging especially when taking into account all of the factors and considerations that go into applying for different roles. Not only is it important to consider the demands and qualifications of a new position, it is also equally important to do some research on the company you are applying for if you plan on working there in the long-term. Corporate culture is one of the many important factors to examine when immersing yourself into a new workspace because it is directly linked to the overall happiness and fulfillment employee’s feel at work. So, what is the first step you can take to determine if a company has a great corporate culture that fits you? Well, start by taking a look at its retention rates!

Retention rates are the measurements of an organization's ability to retain its employees within a specific period of time. Companies with a poor retention rate (a turn-over rate of more than 10%) can provide insight into employee satisfaction rates and identify a potentially unhealthy workplace culture. On the other hand, companies with a high retention rate (close to 90% or higher) tend to have greater employee satisfaction along with a healthier workplace culture that encourages productivity and overall financial stability and growth.

I'm sure some of us have worked a job where a new employee leaves shortly after their first day at work and you may have wondered why. While this could be due to multiple reasons outside corporate culture, it is always a good idea to research former employee reviews of a company you're interested in working for through accredited employee review sites. That way you can gain a better idea of how a company operates behind closed doors before you even take the time to apply and interview! However it is also important to take reviews with a grain of salt.

By now you might be wondering what exactly makes corporate culture great? The answer to this question can be subjective depending on who’s asking. Ideally, you want to look for a company culture that aligns with your values. For instance, if a job seeker values diversity in the workplace they would look for a company that embodies this value in their business practices. The more of your personal values that align with a company's workplace culture, the more likely you are to feel satisfied and fulfilled at work which leads to higher retention rates. 

The hunt for a good job that fits your life and needs can be challenging but always remember that your happiness and sense of fulfillment are important! Take your time when researching a job position and the hiring company so you can increase your chances of being a good fit for the long-term job. By researching a company's retention rate, you take one step closer to finding a career that enriches your life with a healthy corporate culture that fits you. So, show up for yourself and research those retention rates before applying to your next dream job!