A few years ago, the news that many conventions have annulled or frozen the seniority bonus. Such decisions cause a The impact on the wage structure and thus on the purchasing power of workers.
The seniority bonus is one of the complements that are added to the basic salary in the employee's paycheck.. The amount is variable and depends on the number of years the worker has worked for the company, but also on the provisions of the collective agreement applicable to his or her industry.
In general, the length of service bonus pays special compensation to employees who have exceeded a fixed period of time for the purposes of this compensation, and which can be established on the basis of:
However, since the end of the 1990s, especially after the 1994 labour reform, this figure has started to disappear and is maintained in few sectors.
It is clear that, This change means a considerable reduction in the number of workers in the payroll. In many cases, the seniority bonus was almost as important a part of the basic salary as the basic salary itself. and, therefore, one of the pillars of remuneration. Measures such as the freezing or withdrawal of this allowance may cause the employee to consider looking for a job in another company, in order to try to match the economic conditions he or she enjoyed until such a substantial change took place.
For companies, the progressive disappearance of the seniority bonus is not a source of financial benefits, as one might think. While there are savings, there are also new costs. The challenges that the entrepreneur will have to face, which relate to:
However, there are formulas that manage to balance the scales on both sides, satisfying both the needs of the worker who has lost his seniority bonus and the financial equilibrium of the company. trying to cope with the new situation.
The seniority bonus was an incentive for employees, which encouraged them to stay with the company, making it easier for the company to talent retention. At the same time, it was an important relief for workers and their families, who had more financial support. But today, in the absence of this supplement, There are ways in which staff can benefit in a similar way. One of them is the flexible remuneration.
Allowing each employee to individually agree on the benefits they wish to receive ensures a better fit with their needs, while at the same time their purchasing power is increased.
For companies that implement this flexible remuneration model, the benefits are quick to follow., The new initiative, in the form of a boost to employer branding, productivity and employee motivation.
