The labour retention ratio is a measure of how well an organization is retaining its employees. It's calculated by dividing the number of employees who have stayed with the organization for a given period (usually one year) by the total number of employees at the beginning of that period. The result is expressed as a percentage, and the higher the percentage, the better the organization is at retaining its employees. A high labour retention ratio indicates a positive work environment, good employee satisfaction, and a strong employer brand. On the other hand, a low retention ratio can indicate a toxic work culture, poor management, or low employee morale.