Employee Tenure is the average years of service for each employee in the organization.
A high employee tenure means that the average employee has a lot of years of experience in the company. In some cases, it can also be a sign that a lot of experience may be retiring in the near future.
A low employee tenure means that the average employee has very little experience in the organization.
Employee Tenure = Combined Years of Service / Number of Employees
A business has 38 employees with a combined 375 years of service.
Employee Tenure = 375 / 38 = 9.87
Therefore, this company’s employee tenure is 9.87 years.