Service Awards for long service in a business is a staple part of a corporate retention strategy. It is one of the most tried and tested methods of employee recognition; and the benefits of service award schemes are numerous.
The notion that service award schemes are a ‘staple’ means the scheme is well entrenched, static and traditional by nature. By this I mean the service award structure is well-intentioned but likely to have been left unchanged for a long time. Recipients are likely to receive a certificate of some description and a ‘gift from the company’ like a gold watch (typical gift given by companies for eons for the 25 year anniversary).
Comparing the ‘staple’ service award schemes with best practice approaches is like comparing the humble ham, cheese and tomato sandwich with a smoked ham, semi-dried tomato and gruyere cheese baguette – the service award structure is solid, but not as enticing or tasty for the recipient as it could be.
What this article intends to show is a couple of easy to implement strategies to spice up your company service award scheme to make it more effective as a retention and engagement tool.
Two Top Tips to Spice it Up
1. Realise Changing Dynamics – Traditionally, service award structures are equated with long service periods, with recognition often occurring at 5, 10, 15, 20, 25 and 30 year increments. This type of approach was once sensible, as employees in previous decades were likely to stay with a company and ‘work up the ranks’. However, in the modern workplace, the dynamics have shifted, with employees (especially those of Generation Y) happy to move into new roles with different organisations to achieve their employment goals.
Understanding the fact that employees are less likely to bunker down and earn their stripes in the one organisation over an extended period of time, service award structures need to be adjusted to suit the times. Ultimately, the most effective service award schemes have done away with the traditional long increments of service and opened up service awards at earlier intervals (such as at 1 year, 2 years etc.). By doing this, you foster loyalty with a less loyal generation of workers, and are more likely to retain them for longer.
2. Realise the Gold Watch is Out – Most ‘staple’ service award schemes have at their heart gifts from the company that equate with a particular anniversary (for example the gold watch). This approach to recognition is fundamentally flawed by virtue of a simple premise – not all employees are excited or incentivised by that gold watch. The best service award schemes now offer choice to their employees as to what they treat themselves to. By offering choice, employees are able to treat themselves to something that fits their tastes; which makes the impact of the service award more substantial and long lasting.
Through the implementation of these two changes in your service award scheme, you will instantly enhance levels of employee engagement and retention amongst employees, in particular your organisations’ future stars. You will turn your humble ham sandwich into a more alluring baguette.
Simon Tufrey – Motivation Coach, Power2Motivate
