Your long-term employees have been with you for ages. They have seen your highs and lows and stuck by you, and for that, they are very valuable to the team. It is quite rare that employees stay with companies for an extended period, and good employees are rare.
As a manager, you must find ways to show your appreciation and strive to build a good working relationship and a supportive organizational culture. When you notice employees are loyal, your priority should be to retain them because high turnover communicates dissatisfaction and reflects poorly on the organization.
Human resource managers are left with the job of improving employee engagement and employee well-being. What would other employees think when they realize that the long-term ones are not getting any long-term employee benefits?
This can cause junior staff to feel demotivated and think the organization does not care much for its employees. What you want to establish as a manager are employee benefits or schemes that these people are entitled to in exchange for their time and service.
6. Benefits for Long Term Employees
Employee benefit schemes can be divided into short-term benefits and long-term benefits. Long-term employee benefits refer to all the benefits the employee is entitled to after being employed for 12 months. These can include but are not limited to:
1. Flexible Job Profile
This is one of the most popular employee benefit schemes and long-term employee benefits. Since these people would have been around for a while, they would have learned all kinds of tips and tricks of the trade in a department. You can encourage them to continue doing the same in other departments they might have an interest in. Once their potential has been noticed over time, they can become a Jack or Jill of all trades. Of course, this is beneficial to them, as they get to consistently learn and challenge themselves.
2. Company Future
Longstanding employees have been there for years and have dedicated their time and energy to the company. They have helped the organization grow and vice versa. Older employees who know and understand how the company works are assets. They know its history and resilience are capable enough to help in the company’s decision-making process regarding its future. Of course, the involvement means greater employee satisfaction.
3. Deferred Compensation
This long-term employee benefit allows the employees to access a portion of their income later. The deferred compensation program is a special type of savings program that helps employees invest in the retirement lifestyle they want to achieve, which is sometimes more difficult with pension plans.
The employee is paid a portion of the specified salary while the remaining amount accumulates as deferred compensation.
4. Long-term Sabbatical Leaves
This type of leave is known as a career break that is given to employees for a variety of reasons, and a long-term sabbatical can extend over a year. Depending on company policy, only employees who have been around for quite some time are eligible to apply for it. The policy also dictates if employees get partial pay or full salary during this time.
5. Long-term Care Insurance
Employees who have been around are now entitled to long-term employee benefits with medical care insurance that is used to assist with medical and custodial care. It shows the importance of employees' benefits. This may be needed because of physical conditions or chronic mental problems that have prevented them from living normal lives. These benefits typically involve nursing home care, respite care, assisted-living facilities, home health care, hospice care, and adult daycare.
6. Long-term Disability Benefits
Companies often provide long-term employees benefits which cover the loss of income due to occupational illness or injury. The employee is expected to receive monthly cash amounts, which are paid to them until they have reached the age of retirement or until they have gotten to another designated age.
5 Benefits of Long-term Employees to the Organization
1. Strong Foundation of Knowledge
Those with your organization for many years know a lot about the organization’s culture, products, and services. They have experienced several changes within the agency, and therefore understand what works and what does not. Since they are performing their job daily, they have developed a strong knowledge base, which results in higher productivity and fewer mistakes.
It is one of the most common long-term employee benefits in business. By staying with an organization for numerous years, long-term employees indicate a consistent and reliable work environment in present, which improves team empathy and morale. In economies where jobs are limited, long-term employees indicate a secure work environment.
Employee turnover costs the company a lot of money. Typically, the costs include separation fees and administrative tasks associated with termination processing, separation pay, among others.
Next comes the replacement costs, which are incurred in trying to replace the lost employee. These may include advertising for new jobs, screening applicants, conducting interviews, and administrative tasks related to hiring. By retaining employees, these costs are never a problem.
4. Invaluable Support System
Once you hire a new employee, you must train the person each time. Long-term employees have already been through this process and can act as an invaluable support system to new employees. That’s why you should offer many valuable long-term employee benefits for them to reduce turnover rate of those who work for a long time.
When the new employee feels unsure about the job’s responsibility and duties, the long-term employee can reassure the person that in time it can be mastered.
5. Established Strong, Working Good Customer Relationships
The key to any successful business is to have strong client relationships. Long-term employees benefits have been around for years and have developed a relationship with the customers. So, they have come to rely on these employees to deliver their products and services.
In a furniture store, for example, there may be that one employee who fulfills a customer’s bulk office furniture order, answers their questions, addresses their problems, etc. very well. Long-term employees provide a trusted, beneficial relationship that can only bring success to your organization.
Managers and human resource staff members must work to keep long-term employees. Try motivating them by offering competitive health insurance and retirement plan packages. If possible, you can even promote from within, rather than hiring a new employee.
Managers can offer paid benefit time, such as personal, sick, and vacation days. Annual bonuses and raises may also work. At the same time, remember to treat all employees with respect!
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