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Tenure

REFERENCE NUMBER: BR004

Employee Census Headcount Gender Ratio Ethnic Diversity Ratio Age Ratio Job Type Census Employee Benefit Participation

Basic Ratios Salary Rollup Metric Average Salary Metric Turnover Ratio Tenure Performance Metrics Open Requisitions

Advanced Ratios Span of Control Key Employee Identifier Succession Planning Report Employee Surveys Ratios Training

Description

The Tenure Metric communicates how long an employee has been employed by the organisation. Tenure can be reported by total length of employment with the company or by length of employment in each position occupied by the employee.

Business Case

Individual Tenure Metrics are important in assessing employee performance with respect to peers as well as eligibility for promotion and certain benefits. Aggregate Tenure Metrics are a measure of employee satisfaction with the organisation and/or their direct supervisors. Aggregate Tenure Metrics can also be compared with Tenure Metrics for industry peers to assess the company’s competitive standing with potential employees.

Required Data

Employment Start Date   Example: 3-12-2001
Employment End Date   Example: 7-24-2005

Sample

Implementation Considerations

There are many considerations that can be taken into account when defining the tenure calculation. In fact, multiple tenure metrics may be desirable. Some metrics are listed below. Your HumanConcepts Professional Services Consultant can work with you to define calculations that take into account the available data and your business needs.

Individual Tenure by Position

Example: Sr. Engineer – 18 months, Manager – 4 months
Most companies report individual employee tenure not only as a total number of months spent with the company, but also broken out by the number of months spent in every position that the employee has occupied. This additional granularity makes it easier for managers to assess employee eligibility for promotions, position rotation as well as tenure-related benefits, such as 401K plan matching, tuition reimbursement, leaves of absence, etc.

Average Tenure by Job Role/Job Type

Example: Accounting Function – 36 months, Engineering – 44 months
In addition to reporting individual tenure, most companies also monitor average employee tenure by Job Role or Job Type. This information can highlight out-of-range conditions, such as unexpectedly low tenure in a particular department, or tenure that is significantly lower than that of an industry peer. High turnover, if not aggressively managed, can lead to poor employee morale and poor employee performance.