What is a Employee tenure?

Q: How does tenure affect notice periods in Australia?

Under the National Employment Standards , minimum notice periods increase with tenure: 1 week (under 1 year), 2 weeks (1-3 years), 3 weeks (3-5 years), 4 weeks (5+ years). Awards may provide longer periods.

Q: Does tenure affect redundancy pay?

Redundancy pay increases with tenure under the NES. Eligible employees receive 4 weeks base pay at 1 year, increasing to 16 weeks at 10+ years. Small businesses (under 15 employees) have different rules.

Q: What is average employee tenure?

Average tenure varies by industry and age group. Overall Australian average is around 3-4 years. Younger workers tend to have shorter tenure; older workers longer. Hospitality typically has shorter tenure than professional services.

Q: How do you calculate average tenure?

Sum all current employees' tenure (in months or years), then divide by total employees. For example: if 5 employees have tenure of 1, 2, 3, 4, and 5 years, average tenure is 3 years. Track monthly to identify trends.

Q: Is longer tenure always better?

Generally yes for retention metrics, but balance is important. Very long tenure across the board may indicate lack of fresh perspectives. Very short tenure suggests retention problems. Healthy organisations have a mix of tenures.

Updated 28 Jan 2026 • 5 min read

Employee tenure is the length of time an employee has worked for an organisation. It's measured from their start date and is used to calculate entitlements, understand workforce stability, and identify retention patterns. Longer tenure often indicates better retention and employee satisfaction.

Understanding employee tenure

Employee tenure is simply how long someone has worked for you. While straightforward, it's a critical metric that affects legal entitlements, indicates retention success, and provides insights into workforce stability. Tracking tenure helps predict turnover risk and plan for the future.

Tenure affects

Notice periods
Redundancy pay
Long service leave
Other entitlements

Tenure indicates

Retention success
Workforce stability
Institutional knowledge
Employee satisfaction

Tenure-based entitlements in Australia

Several entitlements under Australian law increase with tenure:

Entitlements by tenure

Notice period: 1-4 weeks based on service

Redundancy: 4-16 weeks based on years

Long service leave: After 7-10 years (varies by state)

Unfair dismissal: Protection after 6 months (or 12 for small business)

Tenure metrics

Average tenure: Mean time employees have been with organisation
Median tenure: Middle value (less affected by extremes)
Tenure distribution: Breakdown by bands (0-1, 1-3, 3-5, 5+ years)
Tenure by segment: Compare across departments, roles, or demographics
New hire survival rate: Percentage reaching 1 year

Watch early tenure turnover

High turnover in the first year often indicates onboarding or hiring problems. If many employees leave before reaching one year, investigate whether expectations are being set correctly and whether new hires are receiving adequate support.

Why tenure matters

Benefits of longer tenure

Greater institutional knowledge
Lower recruitment costs
Stronger customer relationships
Deeper skills and expertise

Risks of very short tenure

Constant training costs
Lost productivity
Knowledge drain
Morale impact

Improving average tenure

Invest in onboarding

Strong onboarding increases first-year survival rates. Employees who feel supported early are more likely to stay long-term.

Create growth paths

Employees stay longer when they see career opportunities. Provide development, promotion paths, and interesting work.

Develop managers

Manager quality significantly affects tenure. Invest in management training and address poor managers quickly.

Key takeaways

Employee tenure measures length of service and affects entitlements, indicates retention success, and reflects workforce stability. Track tenure metrics to identify patterns and problems. Focus on improving early tenure (first year survival) and creating conditions where people want to stay long-term.

RosterElf's staff management helps Australian businesses track employee records and manage tenure-based entitlements like leave accruals.

Frequently asked questions

How does tenure affect notice periods in Australia?

Does tenure affect redundancy pay?

What is average employee tenure?

How do you calculate average tenure?

Is longer tenure always better?

Written by

Georgia Morgan

Georgia Morgan is a former management executive with extensive experience in organisational strategy and workforce management. She joined RosterElf to support strategic planning and operational development, bringing a pragmatic, people-focused perspective shaped by years of leadership in complex environments.

How to implement in RosterElf

Step-by-step guides to set this up

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View employee tenure and length of service in staff reports.

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View staff information in HR Hub

Track employee tenure through HR Hub employee records.

Related resources

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Staff management software Employee management features Leave management software Time and attendance tracking Employee turnover Retention strategy Notice period Employment history

General information only – not legal advice

This glossary article about employee tenure provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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