Average Employee Tenure

Average Employee Tenure

KPI Details

Average Employee Tenure measures the average length of time that a single employee stays with the company. Employee tenure is a vital Human Resources (HR) metric that can be used to assess employee engagement and satisfaction, company training and development programs, the quality of benefits and compensation packages and the overall culture of the organization. Furthermore, highly tenured employees are typically more familiar with the organization's culture, as well as its operational and strategic objectives (i.e., the company has "invested" in these employees), which can have a positive impact on workplace productivity, morale, and work quality. Retaining valuable, high performing employees is seen as a competitive advantage for any organization, and can also lessen the organization's recruiting and hiring workload.

KPI Definition

The average amount of time (measured in years) that all employees, or a particular group of employees (may be segmented by employee type, function or department), have been employed by the company across all job positions held during their tenure.

KPI Calculation Instructions Average Employee Tenure?

Two numbers are used to calculate this KPI: (1) the sum of total tenure (i.e., the number of years that an employee has been with the company) for all employees within the group being examined, and (2) the total number of employees within the group being examined. Employee tenure should be counted from the first day of employment until the presentday (for employees still with the company), or the day of termination/ separation. Average employee tenure may be analyzed at a companywide level, within various departments or organizational areas (e.g., Finance, Information Technology, Sales, etc.), within specific regions or for specific job positions or employee types.

KPI Formula :

(Sum of Tenure for All Employees Being Examined) / Total Number of Employees Being Examined