Longevity Calculation

njjel

When considering longevity bonuses do all years of service get added together or just the ee's current years of service? It was my understanding that longevity bonuses are given to encourage and reward employees to stay with the company without a break in service. Others here disagree and I wondered what you all do with yours.

Sunny

We have a policy that covers seniority when there is a break in service. A new seniority date is calculated by subtracting the length of time away from the Company from the length of prior service. This gives the employee a new "bridged" seniority date that becomes the basis for longevity bonuses, service awards, etc. It's kind of a middle ground between recognizing all their prior service and recognizing none.

Down_the_Middle

We use the definition of "most recent continuous service" and that governs the calculation. I see this definition used frequently throughout the healthcare industry.

scottorr

Our policy specifically states that if the employee has left for more than six months, their longevity goes back to zero. When we rehire the employee we specify in the offer letter that because they were gone for more than six months their longevity status has been reset at zero. That way there is no wiggle room. If I were you I would define this better in your policy and then stick with it.