1. What is Average Length of Service?

Average Length of Service (LOS) is a human resources metric that calculates the average time employees have been with an organization. It provides insights into employee retention, loyalty, and organizational stability.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Sum LOS — Total years of service for all employees
• Employees — Total number of employees

Explanation: This calculation divides the combined years of service by the number of employees to find the average tenure.

3. Importance of Average LOS Calculation

Details: Average LOS is crucial for understanding employee retention, identifying trends in workforce stability, benchmarking against industry standards, and developing effective retention strategies.

4. Using the Calculator

Tips: Enter the total years of service (sum of all employees' tenure) and the total number of employees. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good average length of service?
A: This varies by industry, but generally, higher averages indicate better retention. Compare against industry benchmarks for context.

Q2: How often should we calculate average LOS?
A: Typically calculated annually, but can be done quarterly to track trends and measure the impact of retention initiatives.

Q3: Should part-time employees be included?
A: Best practice is to calculate separately for full-time and part-time employees, as their retention patterns may differ.

Q4: What factors can affect average LOS?
A: Company culture, compensation, career development opportunities, economic conditions, and industry norms all influence average tenure.

Q5: How can we improve our average LOS?
A: Focus on employee engagement, competitive compensation, career development, work-life balance, and addressing reasons for turnover.