Employee Tenure: Why It Matters for Your Frontline Team

The success of your organization lies in the hands of your frontline employees. They are the face of your business, and 88% of organizations in the US depend on the frontline teams to move their operations forward.  

In the fast-paced environment of the frontline, people come and go. But how much “going” is an issue? And could motivating employees to stay longer improve productivity levels, employee satisfaction, and your bottom line? 

In this article, we’ll explain what employee tenure is, why it matters for your frontline team, and how to increase it for better employee engagement and profitability. 

What Is Employee Tenure?

Employee tenure is the length of time an employee has been working at your organization. 

HR typically considers employees that have stayed at your company for more than five years to be long-tenured employees and those that have stayed for less than five years to be short-tenured employees. 

In January 2022, The Bureau of Labor Statistics estimated that the median employee tenure across the United States was 4.1 years. 

The summary also showed a significant difference between tenure for employees in management & professional occupations  — 5 years — and workers in service occupations, 2.8 years. Food service workers had the lowest median tenure of just 1.6 years. 

Long-term employee tenure has been associated with better productivity and a more positive work environment. 

Employees with longer tenures have a strong understanding of your organization’s operations and culture, which makes them more confident and efficient workers. Moreover, having a low employee turnover means that your organization is not spending resources and time on attracting & training new talent and can instead focus on goals and tasks at hand. 

Why Is Employee Tenure Important for Frontline Teams? 

In the post-pandemic economy, organizations are struggling to retain frontline talent. 

High turnover rates — for example, over 60% in retail — are widespread, and over 50% of hourly workers quit within the first 120 days of employment. 

Frontline employee tenure is at an all-time low, and traditional motivators, such as financial incentives and SMART goals, haven’t shown any significant results. 

So, why not just let frontline workers come and go? Multiple reasons. 

• Poor company culture: When people shift in and out of roles, it disrupts operations and makes it harder for your employees to be productive and stay on track.
  
• Bad example: 80% of frontline workers want to start looking for a new position within a year. Seeing their teammates quit their job and look for better opportunities elsewhere contributes to your employees’ desire to do the same.
  
• Cost: Replacing an $8/hour employee can cost your organization a whopping $3,500, plus 47 hours/year and $1,886 spent on training. 

Improving your average employee tenure results in happier & more productive teams and higher profits. 

By 2030, low retention is estimated to cost $430 billion. So, it’s crucial to give employee tenure a priority on your agenda. 

5 Ways to Improve Your Employee Tenure for Better Team & Bottom Line

1. Offer Professional Development Opportunities

One of the reasons for low employee tenure at the frontline is that workers feel stuck in their roles & responsibilities.

Frontline employees feel that they’re not progressing anywhere, which exacerbates the feelings of stress and burnout that are common in industries like healthcare and manufacturing. 

This is especially true for younger workers, who typically feel a strong need to move their careers forward. 

Research shows that employees who feel that they’re evolving in their role are 20% more likely to stay at their company. 

Giving your frontline workers professional development opportunities, such as upskill programs, helps you improve your employee tenure and makes your employees better at what they do.. 

2. Improve Your Performance Management Through Recognition

Studies show more often than not, hourly workers feel unrecognized and unappreciated. Over 58% of hourly workers report wanting to leave their positions because of a lack of recognition. As a result, their engagement and productivity levels suffer, and they often report feeling neglected.

Providing recognition in individual and group settings through verbal, written praise, and rewards are proven to improve performance and increase productivity. 

Engaging your frontline workforce can drastically improve your employee tenure rates. In fact, research shows that engagement can lower turnover by up to 59%. 

But how do you effectively engage frontline workers who don’t have set shifts and often switch their workstations? 

Continuous performance management using a tool like Secchi gives team leaders real-time data they need to hold their employees accountable, enhance communication, and identify performance trends. 

3. Pay Attention to Your Company Culture

Frontline workers want more than just a paycheck. 

They also want to feel that they belong on their team, that their hard work is recognized, and that there’s room for open conversation with their leader. 

Research shows that: 

• A bad relationship with their manager is one of the top five reasons why frontline workers quit their positions.
  
• 21.5% of employees who don’t feel recognized when they do good work had a job interview in the last three months.
  
• Employees are 16% less likely to stay at their organization if they don’t feel comfortable providing upward feedback.

If you want your frontline workers to stay for a number of years and beyond, facilitate a positive & encouraging environment that people actually want to be a part of. 

Humans are social beings. You’d be surprised how much of a difference it makes. 

4. Reduce Burnout Levels

It comes as no surprise that 58% of frontline workers are burned out, and many of them are considering embarking on a new role – or even career — because of it. 

Many essential employees, such as healthcare workers, were feeling stressed and emotionally exhausted even before COVID-19, but the global pandemic took a brutal toll on frontline workers, exacerbating their burnout levels to record highs. 

The post-pandemic economy, labor shortages, and supply chain issues are causing frontline workers to reconsider their careers and try to find a less stressful role. 

Promoting a healthy work-life balance, such as encouraging your workers to take consistent breaks and providing paid days off, makes your employees more appreciative, engaged, and likely to stay. 

5. Improve the Quality of Leadership

Frontline employees want to be a part of a successful team, and success starts with good leadership. 

Frontline supervisors play a crucial role in the day-to-day operations of your frontline teams. Yet, most of them are entry-level or first-time managers who are scrambling for effective solutions in the turmoil of the post-pandemic economy. 

To help your frontline supervisors — and, by extension, your frontline teams — succeed, you need to equip them with tools that’ll eliminate waste and remove barriers that are standing between them and their ability to be high-quality leaders. 

Secchi streamlines performance data, making it simple for frontline supervisors, operations managers, and HR professionals to engage their teams, make informed decisions, and encourage positive improvements. 

As a result, frontline employees will actually want to be a part of your team and your employee tenure rates are likely to go up.

Book a demo to learn more about the difference Secchi can make for your employee tenure and the happiness of your frontline team.