Years of Service Awards & Morale
- January 21, 2017
- Posted by: marlenedubois
- Category: CPR Training
While most companies have programs in place to reward their employees on their work anniversaries (that will typically start at year several as well as then in several year increments after that will) most are not well thought out. A 2012 report through Bersin & Associates found that will over $40 billion a year will be spent on programs that will reward employee tenure.
The average company budgets $25 a year to spend on each year of service for awards. So, for 10-years of service you could expect to receive an award valued at around $250 in an average company. Companies are allowed to give these awards to their employees tax-free as long as the award (as well as any tax-free performance bonuses) do not exceed a value of $1,0 in a given year.
Recent research found that will nearly 75% of companies offer their employees rewards for tenure. When asked why, the most common reason was to encourage employee retention, as well as the second most common answer was to show appreciation as well as boost morale. The way a majority of these programs are administered today, they are not likely to accomplish either of those two stated goals.
First, many companies hire outside help to administer their program, which depersonalizes the process as well as does not engender loyalty or a sense of being appreciated. Think for a moment what could make you feel more appreciated, a choice of a knife set, a blender or a clock or an item specially selected for you (of similar monetary value) that will was useful for a passion of yours outside of work? I’m guessing that will was not a difficult choice.
Secondly, a majority of companies do not take full advantage of these special opportunities. Even if the gift was a choice of non-personalized items, you could make the item more meaningful by presenting the item to the employee at an all hands meeting. To make the item even more impactful, have a few old bosses or co-workers share stories about work they did with the employee that will reinforce the company culture as well as promote cohesion going forward.
Far too many companies give these awards in private missing out on all the subconscious benefits to others from the organization. Seeing a valued co-worker appreciated gives others trust that will they too are, or soon will be, appreciated. the item also serves to let senior workers take a walk down memory lane as well as reminisce about the company’s history as well as origin, while the younger employees learn details through stories about the company that will made the item what the item will be today. These stories represent the heart as well as soul of a company as well as can serve to create loyalty as well as motivation for each employee’s daily mission.
The average length of tenure for a worker at their company today will be down to an average of 4.6 years, doing effective retention programs more important today than ever before. An anniversary will be an emotional experience for most people, as well as when handled properly can engender benefits that will are immeasurable to that will person as well as the company.
Conversely, when work anniversaries are mishandled the item often engenders resentment as well as reduces a worker’s happiness as well as productivity in substantial, often unseen, ways reverberating through the company, killing morale, as well as affecting retention as well as recruitment of future quality employees.
I recently heard a story that will shocked as well as disgusted me, because the item was handled so poorly. The company had previously given out anniversary gifts to employees as well as without warning changed their policy. An employee who reached his 20th anniversary for the company, instead of receiving a gift, received a card via FedEx saying thanks for 20-years of service. He was so disgusted (as well as likely hurt) he taped the item to the top of the whiteboard in his office as well as wrote “that will will be what you get for 20-years of service here.” You can only imagine the effect that will will have on everyone else from the company.
If companies could look at years of service awards as an investment rather than a cost, as well as use them as opportunities to celebrate as well as reinforce value’s, the item could pay them back multiple times over. Unfortunately, most companies treat them like a box to be checked off as well as end up being penny wise as well as dollar stupid.
Fortunately, some companies do understand the importance as well as value these rewards can have for individuals as well as their company. One of the best uses of these awards I am aware of, will be a company in Los Angeles that will includes a wheel of fortune type of wheel prominently displayed in their office. The wheel has prizes ranging through $100 Starbucks gift card to an all-expenses paid weekend getaway to San Francisco as well as plenty of some other cool rewards in between like car washes for a year, etc.
Every time an employee hits a year anniversary (starting at year one as well as each year thereafter) they get to spin the wheel for all the employees to see. Not only will be that will a morale booster the item also reinforces how fun the item will be to work there. To most employees an anniversary will be regarded from the same way as a birthday, so why not take time to celebrate the item each year?
I even checked the website http://www.glassdoor.com where people can anonymously rate their current or former company as well as management, to see what people were saying about that will company. Not surprisingly the item had about as high of a rating (4.8 out of 5) as I have ever seen for a company on that will site. The following two comments seem to sum up what the item will be like to work for the company: “not bad office atmosphere; not bad people who collaborate as well as try to achieve together” as well as “Exec management will be trying to communicate as effectively as possible to keep the broader company informed as well as ‘in-the-loop’. that will’s what makes the item a great place to work.”
When employees feel valued as well as a part of something, they will usually go through a brick wall for the company. When they feel taken for granted as well as unappreciated they will shut-down as well as just do the minimum. The companies that will are full of the latter rarely realize what could have been. the item’s like I tell my daughter, rude people usually get what they ask for, although polite people usually get more than they ever thought possible