How to Increase Employee Tenure: Strategies for HR Managers

4 of July, 2023

You know the statistics – the average employee tenure in the U.S. these days is a measly 4.2 years according to the Bureau of Labor Statistics. As an HR manager, high turnover is the last thing you want.

Constantly having to recruit, hire and onboard new employees is exhausting and expensive. Not to mention the costs of lost knowledge and reduced productivity. The good news is there are some proven strategies you can put in place to increase employee tenure and boost retention rates. Want to know the secrets to keeping your best employees for the long haul? Read on, we’ve got you covered.

In this article, we’ll explore five techniques used by the most successful companies to cultivate workforces with impressive longevity and low churn. Implement these strategies and you’ll be well on your way to building a team of employees for life.

The Current State of Employee Tenure in the U.S.

Employee tenure in the U.S. has been on the decline for decades. According to recent surveys, the average employee stays at a job for only 4.2 years. As an HR manager, increasing tenure should be one of your top priorities. Long-term employees are great for business – they’re more productive, help preserve company culture, and reduce costs associated with high turnover like recruiting and onboarding.

• Conduct “stay interviews” to learn what motivates your top talent. Ask open-ended questions about their goals, growth opportunities, and job satisfaction. Look for common themes and make changes accordingly.
• Provide clear career paths and opportunities for advancement. Employees want to know there’s a future for them at your company. Mentorship programs, job rotations, and internal promotions are all great ways to show you’re invested in their long-term success.
• Focus on work-life balance. Flex time, unlimited PTO, and remote work options give employees more control and flexibility. When people feel their needs outside of work are supported, they tend to stay in their jobs longer.
• Invest in ongoing education and training. An employee who is continuously developing their skills is an employee who will stick around. Provide access to courses, workshops, and learning opportunities to keep your team up-to-date with current practices.
• Recognize and reward tenure. Whether it’s a bonus, extra vacation days, or a simple card or announcement, show appreciation for employees who have been with you long-term. People want to feel valued, so make sure tenure is celebrated and acknowledged.

With the right strategies and tools like Sesame’s People Analytics in place, increasing employee tenure at your company is absolutely within reach. Focus on what really matters to your employees and make their long-term success and happiness a priority.

Why Longer Employee Tenure Matters

Why does employee tenure even matter? Simply put, longer-tenured employees are good for business. When employees stick around for the long haul:

• They become highly knowledgeable and skilled. Experience is the best teacher, and over time employees become experts in their roles, processes, and your company culture.
• Productivity and performance increase. As employees become more proficient in their jobs, they work more efficiently and produce higher quality work.
• Costs decrease. High turnover is expensive. It costs money to hire and train new employees. Long-tenured staff are already up to speed, so you avoid these costs.
• Customer service improves. Long-term employees build rapport and loyalty with your customers, who appreciate seeing familiar faces. Your staff can also anticipate customer needs and provide a personalized experience.
• Company culture is strengthened. Employees who have been with you for years fully understand and represent your company culture. They help new hires adapt to your cultural values and ways of working.
• Innovation happens. Long-standing employees have a wealth of institutional knowledge. They can identify opportunities for improvement that newer staff would miss. Long-term employees also feel invested in the company and are motivated to contribute ideas.
• Loyalty forms. Employees who have a long, positive history with your company feel a strong sense of loyalty. They become your biggest advocates and ambassadors.

Clearly, there are significant benefits to increasing employee tenure. Using strategies like improving work conditions, offering opportunities for growth, and strengthening company culture will help you retain your top talent for the long run. And that’s great news for your business and bottom line.

Provide Competitive Compensation and Benefits

To increase employee tenure, providing competitive pay and benefits is key. Employees want to feel valued and taken care of. When they don’t, they’ll likely start looking for new opportunities.

Offer a Competitive Salary

Pay your employees a fair wage that matches or exceeds the average salary for that position. Stay up-to-date with the latest pay data in your industry and region. If an employee finds out their pay is below average, it can damage their satisfaction, loyalty, and motivation.

• Conduct annual salary reviews and consider giving raises to high-performing employees, even if only by a small amount. Incremental raises demonstrate you value them and want them to stay long-term.

Provide Meaningful Benefits

Benefits play a large role in an employee’s overall compensation and happiness. Strong benefits encourage employees to remain in their positions for longer.

• Offer health insurance, retirement plans, paid time off, and other benefits that provide financial security and peace of mind. Employees appreciate benefits they can use and rely on.
• Consider perks like flexible schedules, remote work options, employee discounts, gym memberships, and tuition reimbursement. Perks give employees an enhanced sense of work-life balance and career growth opportunities.
• Make sure employees understand all the benefits available to them. Promote your benefits package to new hires and also remind current employees. Some may not utilize certain benefits simply because they don’t realize they have them.

Keeping your employees happy in their roles for longer through competitive pay and benefits leads to lower turnover, higher productivity, and a more skilled, cohesive team. While the costs to provide strong compensation may seem high, the long-term rewards to your business can be much greater. Focus on total rewards – not just pay, but all the perks, benefits, and incentives you offer – to boost employee satisfaction, commitment, and tenure.

Offer Training and Career Growth Opportunities

Offering your employees opportunities for growth and development is key to keeping them engaged and motivated. When people feel like their careers are stagnating, they start looking for new challenges and better prospects outside the company.

Provide on-the-job training

On-the-job training, job shadowing, and mentorship programs are easy ways to help employees strengthen their skills and work towards career goals without having to invest in expensive external courses. Pairing a new hire with a more experienced employee for mentorship is a win-win for both. The mentee gains valuable guidance, and the mentor can develop leadership abilities.

Offer tuition reimbursement

If there are certain hard or soft skills that would benefit your team or company, consider offering tuition reimbursement for relevant courses or programs. This shows your employees you are invested in their success and want to support them in gaining expertise that will make them better at their jobs.

Create career pathing

Work with managers and executives to establish clear career paths for roles in your organization. This helps employees understand what is required to advance to more senior positions and gives them targets to work towards. Be transparent about the experience, skills, and competencies needed for progression. Offer interim steps, like “associate” levels, so employees have milestones to achieve along the path.

Promote from within

Prioritizing internal promotions demonstrates advancement is possible in your company. When positions become available, first consider current employees who are ready to take on more responsibility. This boosts morale and encourages longevity since employees will feel committed to working their way up rather than having to change companies to progress in their careers.

Giving employees opportunities to learn, grow, and advance their careers leads to a more engaged, loyal workforce and lower turnover rates. Using tools like Sesame’s People Analytics, you can track how initiatives aimed at improving employee tenure and experience are working and make adjustments to better meet the needs of your team.

Improve Company Culture and Employee Engagement

To increase employee tenure, focus on building a positive company culture and improving employee engagement. Your staff will stick around longer when they feel happy, valued, and connected to their work and coworkers.

Promote work-life balance

Offer generous time off, flexible work schedules, and the ability to work remotely when possible. When employees feel they have a good balance between their personal and professional lives, they are less likely to burn out or seek other jobs.

Invest in employee development

Provide opportunities for your staff to learn new skills through mentorship programs, job shadowing, and continuing education. Employees who feel challenged and supported in developing their careers have higher job satisfaction and lower turnover.

Improve communication

Facilitate open communication through regular meetings, surveys, and an open-door policy. Make sure employees feel heard and understand how their work contributes to the company’s mission. Lack of communication is a leading cause of disengagement and attrition.

Build an inclusive culture

Foster an environment where employees from diverse backgrounds feel welcomed and valued. Promote empathy, kindness and community-building. An inclusive culture where people feel they belong leads to greater wellbeing, productivity, and tenure.

Use data to gain insights

Tools like Sesame’s People Analytics can help track employee satisfaction and pinpoint areas of improvement. Look at metrics like eNPS scores, retention rates, and exit interview feedback. The data may reveal patterns you can address to positively impact your company culture.

With the right strategies, you can create an engaging environment where your staff thrive, connect deeply with their work, and choose to stay with your organization for the long haul. Focusing on culture, communication, inclusion, work-life balance, and career development are proven ways to boost employee tenure.