So, what is employee tenure? It is generally defined as the length of time an individual spends with the same organisation or working for the same employer. According to the CIPD, the most common length of service is between two and five years (22.4%) but employees with over five years’ service make up nearly 50% of the workforce (Jan-Dec 2022).
Is a long-term relationship better? You can certainly be forgiven for thinking so, as our corporate landscape often places value on long service and actively engages with strategies to lengthen or reward employee tenure. But why? Here are some key benefits of both short- and long-term tenures:
Long-term employee tenure
Increased productivity
Tenured employees tend to have a clear understanding of their roles and company goals due to their experience and time with the organisation. This familiarity with processes and procedures can allow them to work efficiently and contribute positively to productivity, as they are able to navigate the idiosyncrasies inherent in all companies. Quite often, they will have developed practices that enable the most efficient use of time to achieve objectives and outputs; and are then able to influence wider practices to spread the word.
Stability and commitment
Tenured employees will often feel more secure in their positions and so, can demonstrate greater commitment to the company. Their loyalty contributes to a stable work environment, which can positively impact team dynamics and overall organisational success. My current HR team has an average tenure of around 10 years, and this contributes to a very supportive and effective working environment – although how they’ve put up with me over the years is still a mystery!
Skill set and knowledge base
Over time, tenured employees accumulate valuable knowledge and skills specific to their roles. This expertise can not only be passed down to new hires, benefitting the organisation as a whole, but also help with integrating new technologies and processes, ensuring they work for the business. We all have a ‘go-to’ person in our companies who is the fount of all knowledge and can help give a perspective gained from years of experience and insight.
Company ambassadors
A company that retains its workforce builds a reputation for employee satisfaction. In a world where Employee Value Proposition (EVP) plays an important role in both retention and attraction, having employees who are aligned with the company ethos and happy to talk about why they’ve stayed so long, is a real asset. Plus, they are able to share this insight with new hires, acting as mentors and imparting knowledge and enthusiasm for the company.
Short-term employee tenure
So, if long tenured employees are the utopia, why does an interim market exist, I hear you ask? What about those contractors who enjoy short-term assignments or project-based roles? Well, as I mentioned earlier, there are benefits to both forms of tenure and while the above benefits can be true of long-term relationships, there is also a lot to be said for a short-term fling (from an employment perspective, I hasten to add):
Career experience
Demonstrating experience in diverse roles can make employees more attractive to potential employers, not only for permanent positions but also where a specific skill set or experience is needed. Working in various short-terms roles can help to provide this and organisations then benefit from someone who can bring real-life examples from different workplaces.
Versatility
Working across different organisations and/or industries means employees will have experience of adapting to new environments or taking on responsibilities they haven't had before. This can encourage a mindset that is open to new ideas, as well as sharing them, and so means organisations benefit from having a versatile employee who excels in new environments.
Openness
By accepting that an individual is not planning on bedding down within the organisation, employers may find a level of openness and challenge that is not there in others. The short-termer will be happy to challenge the status quo and focus on meeting the objectives in hand, even if that means coming up with new ways of working or unsettling the cart. While this might not be comfortable for all involved, it will foster an environment where ‘this is how it’s always been done’ is no longer a mantra.
Ambition and drive
Employees who are prepared to leave a company to seek new challenges or career development that is not available to them if they stay, show a level of ambition that is likely to have benefitted the company during their employment. In addition, they could well be the individuals who return to the organisation as future leaders, and so allowing them the opportunity to gain new experiences, while leaving on good terms, is a no brainer.
Final thoughts
With benefits of both types of tenure, where does this leave you? Should you be looking for a serial monogamist or a more open relationship? Well, as with most things in life, there isn’t a simple answer. It’s primarily about striking the right balance within your workforce and accepting that people have different preferences and needs.
Of course, you should be looking to encourage retention and reward those who show loyalty to the company, but you should also embrace those who leave sooner than hoped as they may one day wish to return. Many people, having gained certain skills and experience elsewhere, will fondly remember their experience at an organisation and consider rejoining. Therefore, the main thing to remember is how all employees are treated and valued during their time with you. Who knows, you may rekindle a relationship with an old flame further down the line!
Looking for your next great hire in the HR space, or looking for pastures new? Contact our specialist consultants to start the journey.
