Can the tech industry solve the employee tenure problem?

No comments

Most tech companies don’t perceive employee tenure to be a problem yet. The industry is booming and jobs in this sector keep multiplying by the minute. The downside to all this, however, is that the tech industry has one of the lowest employee tenure averages registered in the past few years.

The fact is our mentalities have drastically changed over the last decade. From baby boomer’s 10 years tenure outlook to an average of 5 years now, everything changes, especially the rules of HR.

“It used to be that when you were looking at someone’s resume and they changed jobs more frequently than every five to seven years, they’d be labeled as a job hopper, unstable, greedy or selfish, unable to hold a job. Whatever it was, it usually flagged them and pulled them out of the stack.

Now, in some regards, I think it has flipped. Now when recruiters look at someone who has stayed in a role for more than three years, the question is why? What have they been doing? …

The world is changing really fast. There’s this intuition that if you’re doing the same job for more than three years and your job didn’t change, that means either your company’s not that dynamic or you are not that dynamic. I’m not saying that’s always the case, I’m just saying there’s this increasing perception.”

Jobvite CEO Dan Finnigan, in an interview for IT Business Edge


  • Employee tenure is the length of time that a person spends with the same employer.
  • Tenure is affected by changes in demographics, technology and the state of the economy.
  • The general tendency, as workers advance in age, is for tenure to rise and then decrease around retirement age.
  • Employee tenure usually increases during recession.
  • Women’s enlarged participation in the workforce has significantly balanced gender employee tenure over the past decades.
  • A higher degree in education usually leads to a bigger employee tenure.
  • Employee tenure is lowest in the service industry.


According to SHRM’s assessment on employee tenure between 2012-2013, the service industry has a 5 year average, which is the lowest average registered. Employees in this industry do not stay at their organizations particularly long and seem to have little connection to or investment in their jobs.

For tech companies, talent retention is even more volatile, the average employee tenure being estimated at around 3 years.

Employee turnover is a costly issue. With every employee leaving, a company loses both its financial investment in recruitment, onboarding and training costs, as well as its non-financial investment (that can sometimes weigh harder) in knowledge, workplace collaboration and competitiveness.

Businesses are just coming to realize that and, hopefully, are coming up with ways to address this challenge.


PayScale did a survey to identify US companies with the highest and lowest employee tenure, out of the Fortune 500 list. The overall average that they came up with was 3.68 years. Compared to the US Bureau of Labor Statistics’ report released in January of 2012, the average dropped with 1 year, from 4.6 years…

Source: Blog – Hppy

TRG Guide

Sponsored By