Why The Average Employee Tenure Is Shortening And What You Can Do About It

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Average employee tenure is on the decline.

A new survey from Glassdoor shows that the average employee tenure is just over three years. What does this mean for your company? Read on to find out!

Average employee tenure is down from 5.1 years in 2014 and 5.5 years in 2009. The survey also found that more than a third of employees now stay with a company for two years or less.

There are a number of reasons for this trend. One is the changing nature of the workforce. With the rise of the gig economy, more and more people are becoming freelancers or contractors. This means that they are less likely to stay with one company for a long period of time.

Another reason is that companies are increasingly focused on short-term results. This has led to a culture of layoffs and downsizing, which

A third reason is the cost of living. In many parts of the world, the cost of housing, food, and other essentials has been increasing faster than wages. This makes it difficult for people to save up enough money to buy a house or start a family.

Finally, technology is changing the way we work. With the rise of automation and artificial intelligence, many jobs that used to be done by human beings are now being done by machines. This is making it easier for companies to downsize their workforce.

What can you do to increase employee tenure?

Providing good benefits, offering challenging and interesting work, and fostering a positive work environment are all keys to keeping employees happy and engaged in their work.

Employers should also focus on creating a culture of development and growth. This can be done by offering opportunities for employees to learn new skills and advance in their careers. By investing in their employees, employers can create a loyal and dedicated workforce that is more likely to stick around for the long haul.

Here are a few of the most effective strategies to increase average employee tenure:

  • Offer competitive salaries and benefits
  • Foster a positive and engaging work environment
  • Encourage ongoing training and development
  • Offer opportunities for advancement
  • Implement changes slowly
  • Encourage employees to stay with the company long-term

By taking steps to improve these factors, you can help increase employee tenure and reduce turnover at your company.

Offer competitive salaries and benefits

Employee turnover is a costly problem for businesses. Not only does it cost money to replace employees, but it can also lead to a loss in productivity and a decrease in morale. Offer competitive salaries and benefits to reduce employee turnover.

In today’s job market, employees have more options than ever before. To attract and retain the best employees, businesses need to offer salaries and benefits that are competitive with other companies. Furthermore, they need to provide employees with a positive work environment and the opportunity to grow within the company.

By offering competitive salaries and benefits, businesses can reduce employee turnover and create a more productive and positive work environment.

Foster a positive and engaging work environment

Happy workplace is the best strategy to reduce attrition and increase average employee tenure.
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It is essential to create a positive and engaging work environment to foster productivity and creativity. A positive work environment is conducive to workers feeling motivated, engaged, and supported. Many factors contribute to a positive work environment, such as:

  • A culture of respect and inclusion
  • Focus on professional development
  • A healthy work-life balance

Creating a positive work environment is essential to attracting and retaining top talent. By investing in your employees and creating a supportive workplace, you can create a competitive edge that will help your business succeed.

Encourage ongoing training and development

Encouraging ongoing training and development is one of the best ways to increase average employee tenure. By providing opportunities for employees to improve their skills and knowledge, you can create a more engaged and committed workforce.

Additionally, ongoing training and development can help employees feel more valued and appreciated, which can lead to increased job satisfaction and loyalty.

There are several ways you can encourage ongoing training and development in your company. You can provide financial support for employees who want to take courses or earn certifications. You can also offer paid time off for employees to attend conferences or workshops.

Additionally, you can create an internal mentorship program to pair experienced employees with newer staff members. By providing opportunities for employees to grow and learn, you can create a more positive and productive work environment.

Offer opportunities for advancement

It is no secret that employees are more likely to stay with a company that offers opportunities for advancement. By offering opportunities for employees to grow within the company, you are not only retaining your best talent, but you are also investing in the future of your business.

There are many ways to offer opportunities for advancement, such as offering training and development programs, providing mentorship opportunities, and creating clear career paths. By taking steps to offer opportunities for advancement, you are showing your employees that you are invested in their growth and development – and that you are committed to keeping them with your company for the long term.

Implement changes slowly

If you want to implement changes in your company, don’t do it all at once. Introduce new policies and procedures gradually so that employees have time to adjust. sudden changes can be unsettling and lead to a high turnover rate.

Encourage employees to stay with the company long term

One way to encourage employees to stay with your company for a long time is to offer them financial incentives. For example, you could offer them bonus payments for every year that they stay with the company. Another way to encourage employees to stay is to create a corporate culture that values loyalty and longevity.


The trend of declining employee tenure is likely to continue in the years ahead.

There are a number of reasons for this, including the changing nature of the workforce and the increasing cost of living. However, there are things that companies can do to increase employee tenure.

By implementing changes slowly and encouraging employees to stay with the company long term, you can make your workplace more attractive to talented workers.

Here is the link to my own research on average employee tenure. I have compared gender wise employee tenure and employment gaps.

We also foresee a major change in employment terms and context over the next few years. Check out my video on 5 future of work predictions.

Do share your views. You could comment below or head over to LinkedIn and send me a message. Thank you for visiting my blog, do check out other interesting articles.

By Nitesh Verma

Founder - Business Management Blog. I am an independent business strategy consultant, helping companies take data driven business decisions. My mission is to find and implement simple solutions for complex business problems.

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