Question

Exercise 1: An Engineering company has a total of 100 employees. Out of 100; 4 employees have been in the company for 1 year 11 employees have been in the company for 2 years 19 employees have been in the company for 3 years 40 employees have been in the company for 4 years 20 employees have been in the company for 5 years 4 employees have been in the company for 6 years 1 employee has been in the company for 8 years 1 employee has been in the company for 10 years Find out the average employee tenure. In your opinion, is it a good average employee tenure?

Answer 1

The average tenure of employee = Total employment time for all the employees/Total number of employees.

So, as per the case scenario:

=1+2+3+4+5+6+8+10/100= 0.39 years

The average employee tenure represents the duration of the employee remains in the job before he leaves and it is the direct indicator to tell how happy is he doing his job in the company.

According to industry standards, in professional, management and other related occupations, the average tenure of an employee is said to be good, if the value is 5.5years.

Here the result is less than 5.5 years.

Moreover, as per the case scenario, almost 74 employees are leaving the job in less than 5 years and only 26 employees showed tenure for 5 years and more than 5 years. As the majority of members having less tenure and also the result is lower than 5.5 years, according to me the Engineering company is not having good average employee tenure.

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