Plain-language questions
Ask for average employee tenure per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · HR
Average employee tenure: formula and example.
Average employee tenure is the average number of years that current employees have worked for the organisation. For each employee you take the time since their start date and calculate the mean. It says something about stability, accumulated knowledge and the make-up of your workforce.
Average employee tenure formula
Sum of (reference date − start date) across all current employees ÷ number of current employees
Worked example
On 1 October 2026 the 150 employees of Acme Groothandel had 1,035 years of service between them. Average employee tenure is 1,035 ÷ 150 = 6.9 years.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A longer average tenure points to a stable workforce with a lot of company knowledge. A short tenure can reflect rapid growth, but can also signal high turnover. Look at the spread: an average of seven years can hide a core group with twenty years of service and many new starters.
Pitfalls with average employee tenure
- Including people who have left; the figure is about who works there now.
- Treating rehires and people who joined after an agency placement differently without agreeing a rule.
- Showing only the average when the distribution across years of service says much more.
SQL & DAX
Calculating average employee tenure in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT department,
COUNT(*) AS headcount,
ROUND(AVG((CURRENT_DATE - hire_date) / 365.25), 1) AS avg_tenure_years,
COUNT(*) FILTER (WHERE CURRENT_DATE - hire_date < 365) AS under_one_year
FROM employees
WHERE hire_date <= CURRENT_DATE
AND (termination_date IS NULL OR termination_date > CURRENT_DATE)
GROUP BY ROLLUP (department)
ORDER BY department NULLS LAST;Avg Tenure (years) =
VAR d = MAX ( 'Date'[Date] )
VAR Active = FILTER ( ALL ( Employees ), Employees[HireDate] <= d && ( ISBLANK ( Employees[TerminationDate] ) || Employees[TerminationDate] > d ) )
RETURN DIVIDE ( SUMX ( Active, DATEDIFF ( Employees[HireDate], d, DAY ) ), COUNTROWS ( Active ) * 365.25 )In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate average tenure?
For each current employee, calculate the years between their start date and the reference date. Add these up and divide by the number of employees. Use days divided by 365.25 for an accurate result.
Is a long average tenure a good thing?
It depends on your situation. Long tenure means retained knowledge and stability, but can also point to little movement and few new ideas. Look at turnover and the spread across ages and roles as well.
How does average tenure differ from retention rate?
Average tenure is a snapshot of the current workforce. Retention rate measures how many people stayed over a period. A fast-growing organisation can have a short average tenure and still a high retention rate.
Further reading
- KPI libraryHR KPIs: formulas and examplesHR KPIs cover staffing, absence, turnover and recruitment. This is sensitive data: show it only to people who are allowed to see it, and do not report on groups so small that individuals can be identified.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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