Benefits for Length of Service
Following a mass exodus of long standing members of staff with valuable experience, you want to come up with a way to reduce the risk of this happening again in the future.
Perhaps you could offer a benefit to incentivise staff to stay with you, such as awarding an incremental increase in holiday entitlement based on length of service?
You know that the three most valued managers would benefit from this. But what about the more junior members of the team, or those who have taken career breaks?
The practice of awarding an increase in holiday entitlement (or other benefits) for greater length of service can potentially be indirectly discriminatory on the grounds of age and/or sex. Therefore a benefit such as this should be implemented following careful consideration of this risk.
The risks of disadvantaging certain groups should be weighed against the benefit of the incentive and the business need of retaining staff with longer service. Serious consideration should also be given as to whether this benefit would, in fact, result in better retention. The longer the length of service required for the incentive to apply, the higher the risk of the practice being discriminatory.
You could consider the following:
1. Why does the business need to try and retain staff with a longer length of service?
2. Is an incentive likely to achieve this?
3. Who will benefit?
4. Who will not benefit?
The exercise you undertake to answer these questions should be carefully documented so that you can demonstrate the factors you have balanced against each another in order to decide on whether or not to implement the practice.
If you would like advice in relation to implementing an incentive scheme please contact the employment team.