Enhancing Employee Engagement: Long Service Bonus Policy Formulation and Implementation

Hi,

In my organization, we are currently wanting to introduce a Bonus Scheme, where the inputs would be considered from the Performance Appraisal. The title of the Bonus is also related to long service, so the entire bonus amount will be split over four years.

Now my question to the members is:
1. What about the employees who have already served for four years (as many years as the company has been in existence)?
2. Should employees who have served more years receive more, or should it be a one-time payment to all who have served two or more years, regardless of the number of years for each employee?

Please share your thoughts on this for clarity.

Cordially,
preet

Hi,

The title of the policy should be "Performance cum Long Service Bonus".

In my opinion, the bonus should be given only to those who have been consistent in performance (very good/excellent) over a period of 2-3 years and are continuing with the company. The same should apply to new joiners.

Daleep

Daleep,

Yes, the name is abbreviated that way. However, if we start the policy now, what about those who have already lived a life of 4+ years with the company? That's a good tenure by any standard for an IT company. So, what is the payout plan for them other than this new policy - which is still being worked out?

Members, please give more thoughts.

Cordially,
Preet

Hi,

While formulating the policy, the effective date has to be mentioned. Normally in these cases where you have employees who have been performing well for a long time, as a special case, the rewards are paid in a lump sum, and thereafter, they will also be covered under the same policy. It is very essential to reward them to keep their motivation level high.

Daleep