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Longevity Calculation

njjelnjjel 1,235 Posts
in HR & Employment Law Vote Up0Vote Down
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.
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  • 3 Comments sorted by Votes Date Added
  • SunnySunny 259 Posts
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    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.
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  • Down_the_MiddleDown_the_Middle 771 Posts
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    We use the definition of "most recent continuous service" and that governs the calculation. I see this definition used frequently throughout the healthcare industry.
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  • scottorrscottorr 599 Posts
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    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.
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