I keep getting told by folks who tend to know way more than me that employees ‘today’ don’t care about staying at a company long term. “Tim you just don’t get it, the younger workforce just wants to spend one to three years at a job than leave for something new and different.” You’re right! I don’t get it.
BLS recently released survey data showing that the average employee tenure is sitting around 4.1 years. Which speaks to my smart friends who love to keep replacing talent. I still don’t buy this fact as meaning people don’t want long term employment with one organization.
Here’s what I know about high tenured individuals:
1. People who stay long term with a company tend to make more money over their careers.
2. People who stay long term with a company tend to reach the highest level of promotion.
3. People who tend to stay long term with a company tend to have higher career satisfaction.
I don’t have a survey on this. I have twenty years of working in the trenches of HR and witnessing this firsthand. The new CEO hire from outside the company gets all the press, but it actually rarely happens. Most companies promote from within because they have trust in the performance of a long-term, dedicated employee, over an unknown from the outside. Most organizations pick the known over the unknown.
I still believe tenure matters a great deal to the leadership of most organizations. I believe that a younger workforce still wants to find a great company where they can build a career, but we keep telling them that is unrealistic in today’s world.
Career ADHD is something we’ve made up to help us explain to our executives why we can no longer retain our employees. Retention is hard work. It has a real, lasting impact on the health and well-being of a company. There are real academic studies that show the organizations with the highest tenure, outperform those organizations with lower tenure. (here, here, and here)
Employee tenure is important and it matters a great deal to the success of your organization. If you’re telling yourself and your leadership that it doesn’t, that it’s just ‘kids’ today, we can’t do anything about it, you’re doing your organization a disservice. You can do something about it. Employee retention, at all levels, should be the number 1, 2, and 3 top priorities of your HR shop.