Retention Rate What Does It Mean?

The retention rate is a measure of employment duration and answers the question, How well do workforce development participants sustain employment? This slide presentation addresses definition of retention rate and calculation of the measure

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Retention Rate The Slide Show

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Retention Rate
The Definition
Retention Percent of participants who have been employed in four continuous quarters after completing services. The selection criteria for the retention report include two subsets. 1) Participants who completed services and got a job within six months of completing services,

and
2) Participants who remained employed for four continuous quarters.

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Retention Rate Who is counted?

All participants Did participant complete services and get a job within six months of completing services? Yes, Total Exited & Placed column

No, not included

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Retention Rate Total Exited & Placed

1 Participants completed services and got a job within six months of completing services.

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Retention Rate Services Completed

This is the services completion date.

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Retention Rate Who is counted?

All participants Did participant complete services and get a job within six months of completing services? Yes, Total Exited & Placed column

No, not included

Did participant stay employed four quarters? Yes, Total Retained column No, not included

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Retention Rate Total Retained

Participants were employed four continuous quarters.

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Retention Rate Denominator

Retention rate = Denominator 1 Total Exited and Placed Records where participant had at least = one hour of work during the quarter of completing services or the quarter after completing services.

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Retention Rate Numerator

Numerator Retention rate = Denominator

Total Retained Total Exited and Placed

Records where participant had a minimum of one hour of work in each = of the four quarters after the quarter of completing services. Records where participant had at least = one hour of work during the quarter of completing services or the quarter after completing services.

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Retention Rate The Report

Retention rate

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Retention Rate An Example

Services Completed 3Q 2002 (July 1, 2002 through September 30, 2002) Total Retained Retention rate = 2 Records where participant had a minimum of one = hour of work in each of the four quarters after the quarter of completing services (3Q 2002).

Total Exited and Placed

All records where services were completed during = 3Q 2002 and records where participant had at least one hour of work during the quarter of completing services (3Q 2002) or the quarter after completing services (4Q 2002).

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Retention Rate An Example Total Exited & Placed

Total Retained Retention rate =

Total Exited and Placed

3Q 2002

Did participant have one hour of work during the quarter?

If yes, count in Total Exited and Placed column

All records with a services completed date of 3Q 2002 (July 1, 2002 through September 30, 2002) are selected.
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Retention Rate An Example Total Exited & Placed

Total Retained Retention rate =

Total Exited and Placed

3Q 2002

4Q 2002

If participant did not have one hour of work, go to next quarter.

Did participant have one hour of work during 4Q 2002?

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Retention Rate An Example Total Exited & Placed

Total Retained Retention rate =

Total Exited and Placed

3Q 2002

4Q 2002

Did participant have one hour of work during 4Q 2002? If yes, count in Total Exited and Placed column. If no, dont count in Total Exited and Placed column.
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Total Exited & Placed A Review

1 The Total Exited & Placed column are participants who completed services and got a job within six months of completing services.

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Retention Rate An Example Total Retained

Now lets look at the numerator Total Retained Services completed quarter 3Q 2002 (July 1, 2002 through September 30, 2002) A participant must have a minimum of one hour of work in each of the four quarters following the quarter of completing services to be counted in the Total Retained column. 2 Total = Retained Retention rate = 1 Total Exited and Placed = Services completed during 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed 3Q 2002 (July 1, 2002 through September 30, 2002) Is there at least one hour of work in 4Q 2002? Total Retained Retention rate = 1 Total Exited and Placed 2 = 4Q 2002 No, participant has not worked four continuous quarters not counted as retained.

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed 3Q 2002

Is there at least one hour of work in 4Q 2002? Total Retained Retention rate = 1 Total Exited and Placed 2 = 4Q 2002

Yes, go to next quarter.

1Q 2003

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed 3Q 2002 Is there at least one hour of work in 1Q 2003? Total Retained Retention rate = 1 Total Exited and Placed 2 No, participant has not worked four continuous quarters not counted as retained.

4Q 2002

1Q 2003

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed 3Q 2002 Is there at least one hour of work in 1Q 2003? Total Retained Retention rate = 1 Total Exited and Placed 2 Yes, go to next quarter.

4Q 2002

1Q 2003

2Q 2003

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed 3Q 2002 Is there at least one hour of work in 2Q 2003? Total Retained Retention rate = 1 Total Exited and Placed 2 No, participant has not worked four continuous quarters not counted as retained.

4Q 2002

1Q 2003

2Q 2003

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed 3Q 2002 Is there at least one hour of work in 2Q 2003? Total Retained Retention rate = 1 Total Exited and Placed 2 Yes, go to next quarter.

4Q 2002

1Q 2003

2Q 2003

3Q 2003

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed - 3Q 2002 Is there at least one hour of work in 3Q 2003? Total Retained Retention rate = 1 Total Exited and Placed 2 No, participant has not worked four continuous quarters not counted as retained.

4Q 2002

1Q 2003

2Q 2003

3Q 2003

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Retention Rate An Example Total Retained

Services Completed - 3Q 2002 Is there at least one hour of work in 3Q 2003? Total Retained Retention rate = 1 Total Exited and Placed 2 If yes, participant has worked in all four quarters and is counted as retained.

4Q 2002

1Q 2003

2Q 2003

3Q 2003

= Records with the services completed quarter of 3Q 2002 and the participant had at least one hour of work during 3Q 2002 or 4Q 2002.

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Total Retained A review

Participants were employed four continuous quarters.

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Retention Rate Interpretation

Lets use an actual example of the Retention Rate using the report. In this example, we will use Region 6 Services Completion date July 1, 2002 through September 30, 2002

2 Retention rate = 1

Total Retained

Total Exited and Placed

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Retention Rate Interpretation

Services completed date

Total exited and placed

Retention rate Total retained

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Retention Rate Interpretation

Services Completion date July 1, 2002 through September 30, 2002
2 Total retained

Region 6 Retention rate =

1

1,417 =

54.06%

Total exited and placed

2,621

How is a retention rate of 54.06% for Region 6 interpreted? A retention rate of 54.06% means that slightly over half of the participants completing services during July 1, 2002 through September 30, 2002 remained employed for four continuous quarters following the quarter after completing services.
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This concludes the slide show. Questions may be directed to: John Glen 503-947-1234 john.l.glen@state.or.us

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