Average Employee Tenure

Average Employee Tenure

The average employee tenure is a metric which can be used in multiple human resource management processes. When monitoring staff retention levels an increase in average employee tenure can indicate a successful strategy. Within succession management a high average tenure may be useful when calculating risks posed. Low average tenure levels can indicate higher staff turnover rates and may warrant further investigation.

The formula used in the calculation is:

Average Employee Tenure = Total Years of Service / Total Headcount