Average Tenure

Category: HR.

When an employee is satisfied with a company, they will remain with it until the end – or at least, until they find a better opportunity. On the other hand, if an employee is dissatisfied with their experience within a certain company, they will try their best to leave as soon as possible – ending, therefore, their tenure.

What is Average Tenure per Employee

The average tenure per employee indicates how long a worker remains employed at a certain company before deciding to leave. The tenure of an employee can be expressed in anything from days to years – from the first day of employment to the date where the workers did their last shift.

You may calculate the average tenure per employee in the context that you know the total time of all employees and the number of employees that were hired. As a result, the formula will look something like this:

Average Tenure
Total Employment Time for All EmployeesTotal Number of Employees

This formula can be applied to a single department or the company as a whole. The result, however, is a direct indicator of the loyalty of an employee – one which found the company satisfactory.

Average Tenure Length for Every Employee

There are job hoppers – and there are loyal employees. Which brings us to the question: how long does an employee stick to a specific company? How long do their tenures generally last?

Well, the median number generally varies from one category of people to another – the deciding factors being everything from their age to their occupation. Here are a few pointers:

  • The average tenure for employees aged between 24 and 34 is 3.2 years.

  • The average tenure for employees aged 65 and more is 10.3 years.

  • The average tenure for workers in the professional, management, and other related occupations is 5.5 years.

Workers in service jobs had the lowest average tenure, which is 3 years.

As a result, if you are the kind of person that changes their job once every five years, you are right within the average. Furthermore, while most companies encourage “staying loyal just to one or two companies,” you have more chances of developing a broader skill base if you make this switch.

Staying for Too Long

Indeed, staying for a longer time will determine an employee’s satisfaction, and it will certainly lead to talent retention. However, if you stay at the same job for too long, it might give the impression that you have no interest in growing your career. Most people change their jobs if they see that no improvements have been made in 3-5 years. And sometimes, that can happen even earlier.

However, as long as there is room of improvement, the average tenure is a sign that the employee is really happy with the company – and that it’s likely they will remain loyal in the future as well. A long average tenure will put the company in a good light, which will bring more employees – and consequently, more profit.

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