Average Tenure per Employee

Average Tenure Per Employee

Employee Tenure key performance indicator shows how long an employee is working for a given company. Employee Tenure can be expressed as duration in days, months, years (since hire date until today’s date or the date when the employee leaves the company). It is also possible to calculate Average Tenure per Employee as the ratio of total time of employment of all employees to the total number of employees hired by employer.  The formula that calculates this ratio looks like this:

Average Employee Tenure per Employee = Total time of employment of all employees / Total number of employees hired by employer

Also, Average Employee Tenure per employee can be computed dividing the total number of years the employee serves in each position by the total number of employees in the company (or department). In this case the formula is as follows:

Average Tenure per Employee in same job/function = Total time of employment of employee in the same position (or job) / Total number of employees

Both types of Employee Tenure calculated by two formulas above can be defined for the whole company or for particular department.

Average Tenure per Employee is an indicator of employee loyalty and satisfaction with the company. You can also use this KPI to compare Average Tenure per Employee with one of your competitors.

To calculate Average Tenure per Employee please follow the steps below:

• Create the custom field “Time of Employment” for project with the code “cf_time_of_employment”



You can add the employment time for each employee separately per task to show total time during which all employees are working for the company or enter the total employment time for project/task group.

• To enter the value of the custom field “Time of Employment” per project you need to right click on task group with project tasks, select “Custom fields options” and select “Edit”



• To enter the value for the custom field right click on task group and select “Edit”



• Create the custom field “Number of Employees” with the code “cf_number_of_employees”



• To enter the value of the custom field “Number of Employees” per project you need to right click on task group with project tasks, select “Custom fields options” and select “Edit”



• To enter the number of employees for task group right click on task group with project tasks and select “Edit”



• Create the custom field “Average Tenure per Employee” with the formula:

ToFloat($cf_time_of_employment) / ToFloat($cf_number_of_employees)



• On Task Tree select the task group for which you need to display the value of this KPI, select “Custom fields options” and set the following custom fields settings for the custom field “Average Tenure per Employee”:
  • In “Settings for” select “This task group”
  • select “Enable”
  • select “Calculated by custom field formula (for task group)”



• If you add the employment time for each employee separately per task to show total employment time for task group select “Custom fields options” and set the following custom fields settings for the custom field “Time of Employment”
  • In “Settings for” select “This task group”
  • select “Enable”
  • select “Aggregated (for task group) and the option “Sum” for custom field “Time of Employment”



 



Average Tenure per Employee on Task Tree