Average Employee Tenure is a measure of the time employees tend to stay with a particular company. Employee tenure can provide insights into employee loyalty, employee satisfaction as well as the freshness level of the workforce.
Average Employee Tenure = Sum of all tenures / number of full-time employees
This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.