In the past, employees used to stay at the same company for longer periods. The reward for their services was always in the form of a carriage clock or a watch, in most cases, and these awards were a little more popular than they are these days. Nowadays, people just move around numerous businesses working for shorter time spans. This fact, by itself, proves that service awards are necessary for any company that wants to encourage its employees to remain loyal while reducing staff turnover at the same time.
Increase Employee Loyalty with Service Awards
Gone are the days when companies used to reward their loyal employees with carriage clocks or wristwatches. If you want to give your employee a service award in this time and era, make sure that you demonstrate true appreciation with a gift that’s highly sought after or perceived to be of high value. It’s even hard to imagine how the classic carriage clock was expected to motivate the employee to work harder and continue serving the company.
Monetary rewards can seem appropriate but money is easily spent and the people forget it pretty fast. It will be absorbed into daily expenditure pretty fast and the feeling of winning will disappear with it. An ideal reward would be a luxury item, something someone would like to buy for themselves but can’t afford. A tangible item that the employee can look and touch will impart a positive feeling for a long time. Grading the awards based on the length of service can be a good idea to encourage employees to stay for longer periods.
Employers should think of years of service awards as a way of acknowledging the length of time an employee has served the business. It’s a win for the company too. During these awards, employees, and employers alike will take a trip down the memory lane as a symbol of organizational memory and continuity. If a long service award is given publicly, people can tell company stories, helping new employees learn the history of their employer.
Increase Employee Retention
Many business owners agree that rewarding your staff is the way to run a desirable and successful business. Others would say that rewarding other achievements that deserve recognition rather than long service make more sense, and they wouldn’t be wrong either. It’s true that there are other achievements that deserve recognition but long service should be one of them too. High staff retention rate ranks among the top agendas on the management list.
It’s a good indicator of satisfaction and staff morale. High levels of staff turnover are bad for business. They have a negative effect on the employees and the workplace itself and no organization wants that. There is no better way to emphasize the importance of service awards than their potential to reduce staff turnover. An organization that rewards its employees and does it will is an organization worth working for.
Recognize Top Performers Who Don’t Get Top Bonus
Service awards are a good way of recognizing top performers who don’t make the cut for other bonuses. For such employees, a service award is another way of telling them to thank you for your terrific performance and we appreciate your continued service. Not everyone can bag the top spot, and it doesn’t mean that other people are not working as hard.
Employee recognition is important to the success of a company mostly because they increase staff loyalty and retention thus reducing employee turnover. By presenting your employees with service awards, they generally become more positive about working for your company. They contribute towards the creation of positive culture in your workplace so rewarding them makes complete sense.
by: Kevin Faber