Business Term to Know: Retention Rate

A retention rate is the percentage of earnings held back by a business. A company with a high financial retention rate is most likely a financially healthy company. In the case of marketing, it is another way to gauge the success of a business by evaluating the ratio of returning customers to non-returning customers.

When it comes to employees, a high retention rate means there is very little turnover – a sign that employees are content working for the particular company.