How Should We Decide Eligibility for Special Benefits for Long-term Employees?

Hello everyone! This is Vaishali, and I work for an export-import company. My company is small-sized and always works on employee benefit programs and policies to keep them motivated.

Special Benefits for Long-term Employees

Now, the management is looking to offer a special benefit to a selected few employees who have worked with the company for more than 10 years and have always been dedicated and loyal to management, working without worrying about time. The company wants to give them time as a benefit so that their salary is not cut after their grace period lapses. Additionally, the company wants to provide them with leave benefits.

Eligibility Criteria for Special Benefits

The question here is that we have 3 employees with more than 10 years at the company with overall experience exceeding that, who have stood by the company through its ups and downs. However, we also have another employee who has been with us for 6 years, with an overall experience of around 7 years. This employee has also been dedicated to the company and has made a remarkable contribution.

How should we decide if this employee is eligible for the special benefits or not? What parameters should we set so that there are no clashes or issues regarding eligibility in the future?

Thank you in advance for the feedback I will receive from experts in this industry.

Regards, Vaishali

Dear Vaishali,

You have already mentioned the criteria of 10 years of good service. If you want to provide benefits to another employee, the criteria should be other than years of service. Instead, you can provide benefits to deserving candidates at the sole discretion of management. This way, you would not need to draft a new policy and set criteria, which could lead to many issues regarding employee claims for benefits. Service years alone do not imply that a candidate is deserving.

Thank you.

Hi Vaishali, my thoughts are here, and a few are already practiced by small and mid-sized companies in India:

1. It is good to communicate to the team that the management appreciates long-term service and loyalty. So, come up with a policy, benefits, and publish it and propagate it wherever possible. This can enhance the morale of employees and attract potential employees to join your organization.

2. Give some appreciation to those who are completing 5 years. Plus, a voucher from an e-commerce joint would be easy to administer.

3. For those who are completing 10 years, offer a special week-long leave (to be used at one stretch) plus a cash incentive. Let them go and celebrate with family for a week.

4. For those who are completing 5/10 years, organizing a get-together with family members and management is a feel-good activity. Add a lunch or dinner.

5. Publish a few words from the senior folks (10 years and more) about the company and their career in the form of a testimonial. This can be free promotional material for the company for websites and social media.

Thank you for both replies. We are not considering service years as a benefit criterion, as this could create issues since every employee who completes 10 years would then be eligible for it. Currently, we already offer service anniversary awards and cash benefits for employees reaching 5, 10, and more years of service. Additionally, we have reward programs in place for the top 4 employees.

Seeking a Special Benefit for Dedicated Employees

What we are seeking now is a very special benefit specifically for those employees who have truly dedicated themselves to the company, working tirelessly even on leaves and holidays, and making remarkable contributions. We are aware of who these individuals are, but there is one employee who has made significant contributions despite being relatively young in terms of experience with the company. This particular employee may not be as management-oriented, which led to questions about whether to include them. However, this employee is close to our company, which adds another layer of consideration. Hence, we are looking to establish clear parameters to determine eligibility without causing any hurt feelings.

Moving forward, clarity is essential.

Regards, Vaishali