Years of Service
Definition
The total length of time an employee has worked for a company.
What are Years of Service?
Years of service play a key role in determining eligibility for certain benefits, recognition programs, retirement planning, and internal advancement opportunities. It’s also a valuable metric in workforce planning and analytics.
Why are Years of Service Important for Employers?
- Supports tenure-based benefits, bonuses, and PTO accrual, if applicable
- Recognizes employee loyalty and commitment
- Helps with workforce analytics
FAQs
How are years of service typically calculated?
It’s calculated from the employee’s official hire date to their current or termination date, factoring in any breaks in service if applicable.
Why are years of service important for HR?
It’s used to determine benefits eligibility, tenure-based rewards, retirement vesting, and recognition milestones.
Should years of service affect promotion or compensation?
While tenure can be a factor, decisions should also consider performance, skills, and business needs to maintain fairness and equity.
How ExtensisHR Can Help
We simplify service tracking and rewards by:
- Tracking anniversaries and milestones within our HRIS
- Maintaining compliant eligibility rules for benefits and PTO
- Designing recognition programs tied to tenure
- Supporting future workforce planning with tenure analytics