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Do Employees Want Years of Service Recognition?

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Studies reveal 89% of top-level executives believe that employees quit work because they want more money. Though that’s partly true, it’s not the sole reason. Recognition, whether intrinsic or extrinsic, plays an essential role in employee retention as it improves the quality of work and bolsters productivity. A rewarding culture directly affects employee retention. 

Employees unconsciously invest extra energy in workplaces that harness a culture of recognition. Further, workers are likely to work longer in companies that deeply enshrine the values of motivation, rewards, and appreciation. Long-service rewards top the list of incentives that harness loyalty and build longevity in the workplace. 

A modern employee knows their worth! Unless companies embrace the art of recognition and rewards as compensation for loyalty, employee turnover may continue to be a constant concern. How do you show appreciation for employees who have stayed on through thick and thin? Instituting a years of service recognition program could be a great place to start. 

In this article, we review the concept of service awards and rewards. You’ll also learn how to set up a service award program to appreciate longevity among loyal staff. 

Do Employees Want Years of Service Recognition? The Dilemma of Retention 

In 2020, the median tenure of employment in the US was 4.1 years. This statistic refers to the median number of years employees stick with their current employers. However, employee retention rates hit a record low this year. Currently, 65% of employees think they can find better employment prospects elsewhere. The scenario explains why 87% of human resource managers consider employee retention their highest priority. 

Did you know 20% of cases of employee turnover happen within the first 45 days of work at a new company? Attrition brings immense cost implications. HR managers may need to introduce incentives that can encourage longevity and help minimize the extent of disruption in operations whenever employees quit. 

Employees are ambitious and will always seek new career opportunities. The best way to cultivate their loyalty is to develop avenues that encourage recognition and engagement. Most rewards managers in organizations wonder if including years of service recognition is necessary. 

What Are Years of Service Awards?

Years of service awards honor employees who have worked with a company for a longer time. Companies that know the value of employee loyalty commemorate anniversaries through service awards, among other rewards and incentives. 

Related:  Rewards and Incentives in the Workplace: Do They Work?

The number of years that an employee must work before qualifying for a years of service award differs from one organization to the next. However, employees typically need at least five years of service to be  eligibile. 

Workers who feel appreciated based on their years of service develop unmatched loyalty toward your brand. Further, this culture of rewards may easily resonate with new employees as the long-term positive implications of instituting years of service awards are apparent. 

Some of the essential benefits include: 

Inspire Peers

Employees love spaces that inspire them to greater heights, and years of service awards do precisely that. When organizations award one employee for a job well done, the action motivates other peers to strive for the same accomplishment. Your staff wants to invest their time and energy in organizations that encourage colleagues to stay and grow. 

A long-service reward program leads coworkers towards greater resilience. New employees in the organization keenly observe trends and modes of operation from the onset. If what they can pick up early on inspires them, then you’ll have a buoyant team. 

Encourage Loyalty

It’s never easy to cultivate employee loyalty in an organization. Your staff wants to know their benefits for sticking with your company. Every business that masters the art of rewarding long-service automatically fosters employee loyalty. A happy team member is less likely to contemplate terminating their contractual agreement prematurely. 

The feeling of attachment to an employer is a result of constant nurturing. Loyalty rewards convince your employees that you appreciate their long-service in the organization. 

Reduce Churn 

Loyalty breeds retention. Once your employees trust in your capacity to reward them for their dedication, they develop a willingness to work with you in the long term. Employees crave long-service rewards. 

Employee retention saves companies from the burden and cost of recruitment and training, as well as the void it leaves that other employees have to fill, often reluctantly. In the same vein, employees also enjoy the benefits of job security. They prefer staying in one job for a longer span. No one wants to take the pains of job hunting after every few months. 

Employees who get rewards for long-service also give back to the organization through high retention rates. 

Foster a Culture of Appreciation 

Workplaces aren’t designed to be dull, boring places where warning letters are the order of the day. Instead, these spaces should promote positive vibes to bind employees and bosses together. Workers want organizations where anniversaries are opportunities to appreciate and recognize colleagues. 

Years of service recognition fosters a culture of appreciation and opens affirmation of employees’ consistency. An organization founded on an appreciation for hard work breeds a happy workforce where others will want to join. 

Increased Productivity 

Happy employees equal a productive workforce. A sustainable long-service award program builds a happy and motivated employee pool. In the long term, such workers give the organization the utmost commitment. 

On the other hand, disoriented staff can quickly become a liability to the company. Employees want years of service reward as external motivation to maximize their potential. Organizations that understand the value of long-service rewards eventually reap greater productivity. Greater productivity means higher profits and better remuneration for employees.  

A Clear Organization Work Culture 

Employees love working in an environment with a defined work culture. Organizations that understand this fact set milestones for employees. After every successful anniversary, employees anticipate appreciation of some sort. If this becomes the culture, everyone looks forward to being a part of the team.

It’s possible to nurture a culture of appreciating long-service through consistent recognition actions. It could be a special bonus, salary raise, or a simple gift; it’s the thought that counts for everything. 

Proud Employees

Some managers think employees have zero interest in long-service rewards. This mindset could not be further from the truth. Every worker wants to be part of a successful company. Fostering a culture of awarding years of service builds an organization that acknowledges success. 

If you can reward employees after every five years, it also means that you’ve also mastered the art of longevity as a company. 

Key Features of and Recommendations for a Great Service Reward Program 

When determining a reward program for your employees, remember that one size rarely fits all. Your company culture, budget and preferences will differ from another company’s, so be sure to work with a rewards and recognition company that is able to customize your program. 

There are other critical elements you need to pay attention to as well. Here’re some boxes you might need to tick beforehand: 

User Friendly and Easy to Administer

A great years of service award and recognition program should be straightforward. Remember that this is a tradition you want to instill within the organization, which means the program will outlive the current leadership. It’s critical to ensure the program is user-friendly and easy to administer. This may be achievable by eliminating any underlying vagueness in the program’s drafting and implementation.

Include a Social Celebration

It’s not enough to reward diligent employees in private. A great reward program recognizes employees publicly with a social celebration. 

Be Intentional with the Gifts

Always attach value to the gifts on offer for long-service so employees can see their reward is of great value. If you offer high-quality gifts, your employees will likely be eager to be part of the party in years to come. Being generous with the presents you offer your long-serving staff communicates that you value their service. 

Have a Defined Employee Recognition Program 

Sometimes reward managers struggle to develop a meaningful employee recognition program. Every employee values different things, and companies often don’t know what types of rewards their employees want. 

If you feel stuck, you have the option of partnering with a modern recognition program service provider. Professionals can help you choose the best options to consider in your long-service reward program and build a program all of your employees will value. This customized approach can even be extended to employees in different parts of the world. Employees in India, for instance, may appreciate something employees here in the U.S. don’t, and vice-versa. 

Related 10 Benefits of Employee Recognition Programs

How to Choose a Great Years of Service Reward Program Service Provider 

Years of service recognition rewards have changed significantly over the past decade, and designing a modern rewards program takes time, experience and creativity. Fortunately, you can allow experts to handle your program so you can focus your business. Modern providers offer some unique ideas on managing and rewarding employees. But before making the final decision, here’s what you need to consider: 

Determine Your Budget 

An awesome years of service recognition program doesn’t have to break the bank. After all, this is a tradition that can reduce your costs over time and ensure you maintain a happy workforce. It’s worth the investment in every way, but you do need a budget. Consider more than what you can afford, looking at it through the lens of what you can’t afford to lose, which are employees. Think of it more as an investment into the future of your company, not an expense. 

A reputable provider will be able to work with your budget to design a program that will motivate and delight your employees. 

Shop for a Provider that Fits your Vision 

Beyond looking for a provider who suits your budget, it’s also crucial to find one who fits your vision. A simple search online on “employee service award” will present enough options. This step should then be followed by conducting due diligence, such as considering various reviews and referrals and talking personally with the company. 

Be sure you understand what the provider can do for you and the cost to do so. You also want to look at the technology they use and their supplier network. Ask lots of questions, and make sure they understand (and care about) your goals and specific needs.

Go for a Socially-driven Recognition Platform 

Digital platforms keep evolving. Human resource managers can now utilize socially-driven reward and recognition platforms to maximize their appreciation programs. Employee recognition software platforms help organizations manage abstract human-related concepts such as recognition, satisfaction, and relationships. 

Seasoned software providers can help you enhance your company culture and build a happy pool of employers. 

 Years of Service Recognition Program is HR’s Best Tool 

Human resource managers play an essential role in advancing the success of an organization.  Ideas, such as extended service recognition programs, help improve employee morale, motivation, and productivity. However, most HR and reward managers are yet to harness the power of years of service recognition awards. 

Employees want such programs incorporated into the workspaces to build a friendly work environment. The best part is that you can utilize digital recognition platforms to boost your efforts to build successful years of the service recognition program. Are you shopping for reward and recognition software that fits your organization’s needs? Contact us today and begin a journey of building a formidable work culture.

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