Tenure Calculator

Created by AbdulRafay Moeen
Reviewed by Dominik Czernia, PhD candidate and Jack Bowater
Last updated: Apr 26, 2022

Our tenure calculator is a handy tool for finding the average service duration of employees in your organization.

The following article will discuss what tenure is, why we calculate the work tenure, and how to calculate the employment tenure by hand using the average tenure formula.

What is an employee tenure calculator

Calculating the employee tenure helps us obtain the average duration of service for employees in an organization. This is the average length of time someone is employed for before they resign or move on, which helps to get an overview of:

  • How satisfied employees are;
  • Loyalty of employees towards the organization;
  • How well the organization's retention policies are; and
  • The organization's revenue per employee.

💡 Revenue per employee is a measure of the total revenue divided by the number of employees.

Now that you know what employment tenure is, let's find more information on how to calculate the average duration of service for an organization's employees.

How to use our work tenure calculator

You can use our employee work tenure calculators as follows:

For average duration of service

  1. Enter the total number of employees you've had over a specified period, e.g., 20 employees.

  2. What is the sum of the years of service for each employee over that duration? For example, input 50 years in the second field of this employment tenure calculator.

  3. Thus, your employee tenure is 2.5 years.

For specific duration of service

  1. Select an individual's employment starting date in the first field.

  2. Select their ending date in the second field.

  3. The result will give you that individual's employee tenure.

In the next section, you will learn about the average tenure formula we've used above.

🙋 We usually calculate employee tenure for mature organizations holding several years of operations and revenue growth.

Formula to calculate average employment tenure

Now that you know what employment tenure is and how to calculate the average tenure of employees with our tool, let's see the proper formula to do it manually:

Tenure=Duration/Employees\text{Tenure} = \text{Duration} / \text{Employees}

where:

  • Employees\text{Employees} - Average number of total employees in the specified period;
  • Duration\text{Duration} - Combined years of service of all those employees; and
  • Tenure\text{Tenure} - Employee tenure at the organization.

The instruction explaining how to calculate the average tenure of employees is below:

  1. Calculate the total number of employees, i.e., those who have left and who are still with you, e.g., 30 employees

🔎 The types of employees we include in this calculation are the ones that have a noticeable impact on the business.

  1. Add up all the time they've worked at your organization, e.g., the total tenure time is 150 years.

  2. Divide the number of years by the number of employees:

    Tenure=150/30=5\text{Tenure} = 150 / 30 = 5

    Thus, this organization's average employee tenure is 5 years.

💡 The greater the employee tenure is in a nation, the lower the unemployment rate.

🙋 To calculate an individual's employment tenure, subtract their end date from their start date.

FAQ

What is work tenure?

Employee work tenure is the average duration of time an employee works for a particular organization before moving onto another.

To calculate work tenure, we divide the number of combined years of service by the number of employees, i.e.,

  • Tenure = Duration / Employee

How do I calculate employee tenure?

To calculate employee tenure:

  1. Count your total number of employees.
  2. Combine all the years they've worked for you.
  3. Divide the number of years by the number of employees, i.e.,
  • Tenure = Duration / Employee

What is the tenure of 20 employees with 120 years of service?

6 years is the average tenure of 20 employees with 120 combined years of service to an organization.

We obtain this by dividing the combined duration of service by the number of employees, i.e.,

  • Tenure = Duration / Employee

How do I calculate the employee tenure in months or years?

To calculate the tenure in months:

  1. Count the number of months your employees have worked.
  2. Divide this number by the number of employees.
  3. You will have your tenure in months, i.e.,
  • Tenure = Duration / Employee

Divide this result by 12 to calculate the tenure in years.

AbdulRafay Moeen
Average duration of service
Total number of employees
Combined duration of service
yrs
Average tenure
yrs
Specific duration of service
Starting date
Ending date
Employee tenure
yrs
mos
days
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