The pros and cons of long-service employees

The advantages of having a long-service CEO are clear, but what about other employees?

More employees are looking to job hop, often seeing a shorter tenure as the only way to advance a career. According to the CIPD, the most common length of service with any given employer is 2-5 years. Once we move beyond this range, we’re starting to talk about long-service employees.

The advantages of long-service employees

The biggest advantage is the most obvious- employees who know how your organisation runs are more likely to be productive. Every company has its unique quirks and particular processes. People who can navigate that, and get new hires on board with those processes, are vital.

Long-service employees tend to make exceptional company ambassadors, able to act as mentors for new hires. This makes sense when you consider these will be the people most aligned with your values, and keenest to share their insights to new people.

Likewise, if you have a lot of long-service employees, you’ll often find your hiring costs decrease. Less churn means you don’t need to spend as much finding and training new people.

As Anton himself noted, we live in a world that encourages short-term thinking. But true innovation won’t happen without a deep understanding of the challenges you, your organisation and your customers face. That only comes with practice and experience.

The disadvantages of long-service employees

One of the bigger concerns for long-service employees is that they can leave, whether through retirement or finding a new role elsewhere. This can wind up becoming very significant if this employee has become embedded into processes and is seen as a core part of the organisation. Good succession planning and other talent management principles are key to minimising damage if long-term employees do leave.

Narrow skill sets are also something of an issue if you don’t put resources behind learning and development (L&D). Long-service employees often become extremely experienced when it comes to dealing with their areas of expertise, but this can sometimes make it difficult to adapt or stay on top of technological advancements. You can support employees here by investing in L&D and giving them plenty of opportunities to grow their skills. Soft skills in particular are vital!

Finally, some employees can become set in their ways when they’re in one position for a while, often being a little resistant to change. However, again, learning opportunities and upward momentum can ensure this is nipped in the bud. The stability that comes from long-service employees, and the core understanding they bring is incredibly valuable.

Strategies for managing long-service employees

Long-service employees are getting rarer and rarer, as modern employment trends encourage job hopping for greater growth. Make sure you keep on top of salary expectations and other push factors that discourage people from staying.

Rewarding and recognising the genuinely significant commitment long-service employees have made is also great. For example, at MHR we hosted a long-service lunch, specifically celebrating employees who’ve worked with us for over a decade. Service awards are also helpful. Even a simple acknowledgement can help someone feel appreciated.

Offering flexible career paths through competency management can be tremendously valuable. An employee who is looking for a change of pace won’t necessarily have to look to a new employer. That keeps their expertise with you.

Good talent management is key to keeping long-service employees happy. Invest in them, and you’ll soon see returns.