How to reward retiring employees?

mtarca · January 2008

We have several employees that will be retiring soon and we do not offer a pension plan but would like to offer something to these long time loyal employees. I am looking for trends for what companies are doing, thoughts or recommendations. One recommendation i did receive was for "seperation pay" but I was wondering if anyone had a recommendation on a bracket or range for seperation pay for these employees?

KMoore1 · January 2008

It might depend on what industry you are in or what the level of the employee is, but we give 2 week's pay (or one pay period) for every 5 years of service, for service over 10 years. We are a white-collar office environment.

cvakiener · February 2008

We have a pension plan but we also reward our retiring employees with $50 per year of service in a check. Sometimes the employee does not want the check so we will purchase a meaningfulk gift for them that costs as much as the check they would have received. One of our modst recent retirees left us after 40 years on the job .... do the math there.

One employee left with a recliner instead of a check.

TXHRGuy · February 2008

This kind of thing is typically worked out on a "weeks of pay per years of service" model. The more years of service, the more weeks of pay.

HRforME · February 2008

Our last retiree got a years pay....after about 25 or so years of service..which works out to be about two weeks for every year of service. We have no pension plan otherwise.

How to reward retiring employees?

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