What (Definition)
Median Tenure measures the Median of tenures of all employees in the company. A tenure is defined as the duration of employment (from start date to today) of an employee.
Why (Benefits)
There are multiple ways to represent tenure and Median is chosen above Average in some cases.
Median is used in Real Estate industry to calculate home prices. Instead of Average home price, they use Median home price as a better indicator of home prices. For more explanation, please see this article https://www.thebalancemoney.com/median-vs-average-what-the-difference-2682237
Let me also clarify why measuring tenure is important.
Measuring and monitoring the tenure will allow a company to understand their workforce profile mix.
A company would want to retain high performing employees as long as possible. More long-tenured employees in a company would be beneficial to the company. They bring their experience and knowledge of the company policies and processes and are likely to perform tasks more effectively and efficiently.
A growing company will have new employees joining the company. Also, new employees will bring fresh perspectives and solutions. Infusion of new employees will reduce the average tenure. Each company needs to achieve the right balance between long-tenured experienced employees and new employees with fresh ideas. This balance will vary from one industry to another.
How (Calculation?)
Formula
Tenure in Days = (Current Date – Employee Start Date + 1)
Median Tenure = Median of Tenures calculated for each employee
We have to calculate the tenure first for each employee and then calculate median of those tenures.
