Rewards for Quality Service
...every organization has a service awards program. These programs have historically used a tiered lapel pin club to reflect years of service: silver pin at 10 years, gold pin at 20 years and a platinum pin at 25 years.
There are a few professional developments that need to be considered in revamping the way we reward quality service (presented as 'quality service' it becomes evident that this IS a performance based reward):
* Roughly 80% of tenure awards are given at the 5 and 10 year milestones.
* Internally grown employees approaching their 10 year milestone were born in 1975.
* One third of the workforce plans to change jobs when the recession ends. (referenced below)
* By 2014 there will be 63 million Millennials in the workforce. (referenced below)
* The aforementioned Millennials will change jobs 10 times by the age of 40. (referenced below)
Here are a few extended realities:
* Waiting 10 years to recognize an employee is now obsolete.
* With Generation X and Generation Y (Millennials) now the dominating professional population lapel pins and logo-ed gifts will not be received favorably.
Recognize Early: If you plan to spend $50 per year of service on an employee; use it every year. Don't wait 5 years. When people make a choice to join an organization the best way you can validate their choice is with a welcome gift and reception. Annual reviews are not the way to congratulate employee loyalty; couple your performance review with a token of your appreciation.
Mementos of Achievement without Emblems: My dad has a guest room full of logo-ed clocks, picture frames, certificates of achievement and globes to commemorate his 30+ years with his organization. This an expression of his brand loyalty to his company. In the advent of professional networking tools, personal branding is now more relevant to today's workforce than loyalty to their company. Sad but true!
You may want to reward your employee with access to an online catalogue of diverse gifts that is relevant to his or her lifestyle. This way an employee is afforded something they will actually use instead of hiding it in their parents study. You should also consider that non-cash service awards programs are tax exempt. Conclusion: Keep the gifts but make them lifestyle relevant to today's workforce...and reward them sooner!
The Process Before the Prize!
There are three driving factors in meaningful recognition of service achievement:
* Communication
* Presentation
* Inclusion
A well crafted message from the CEO can be a keepsake greater than any gift.
What would it mean to an operational employee if the VP were to enter the warehouse and gather his team around! To then put her arm around him and to promote his professional achievements and the way his experience at the company has evolved his personal life.?
You wouldn't recognize service in just one department nor would you recognize service of only Headquartered employees. So why would you have separate anniversary programs in your international locations. Sure, the gift selection will be different in Asia Pac, the EU, etc. but the program branding and communication needs to be globally consistent. Most international business affiliates come from acquisition. The best way to make them feel welcome is to recognize them in the same manner you would your Home Office Manager.
Why don't gift cards work for service awards? Find out next week in the second installation of this Blog Series!
Don't Forget to Remember
- Dave
References:
http://www.mcfrecognition.com/
...every organization has a service awards program. These programs have historically used a tiered lapel pin club to reflect years of service: silver pin at 10 years, gold pin at 20 years and a platinum pin at 25 years.
There are a few professional developments that need to be considered in revamping the way we reward quality service (presented as 'quality service' it becomes evident that this IS a performance based reward):
* Roughly 80% of tenure awards are given at the 5 and 10 year milestones.
* Internally grown employees approaching their 10 year milestone were born in 1975.
* One third of the workforce plans to change jobs when the recession ends. (referenced below)
* By 2014 there will be 63 million Millennials in the workforce. (referenced below)
* The aforementioned Millennials will change jobs 10 times by the age of 40. (referenced below)
Here are a few extended realities:
* Waiting 10 years to recognize an employee is now obsolete.
* With Generation X and Generation Y (Millennials) now the dominating professional population lapel pins and logo-ed gifts will not be received favorably.
Recognize Early: If you plan to spend $50 per year of service on an employee; use it every year. Don't wait 5 years. When people make a choice to join an organization the best way you can validate their choice is with a welcome gift and reception. Annual reviews are not the way to congratulate employee loyalty; couple your performance review with a token of your appreciation.
Mementos of Achievement without Emblems: My dad has a guest room full of logo-ed clocks, picture frames, certificates of achievement and globes to commemorate his 30+ years with his organization. This an expression of his brand loyalty to his company. In the advent of professional networking tools, personal branding is now more relevant to today's workforce than loyalty to their company. Sad but true!
You may want to reward your employee with access to an online catalogue of diverse gifts that is relevant to his or her lifestyle. This way an employee is afforded something they will actually use instead of hiding it in their parents study. You should also consider that non-cash service awards programs are tax exempt. Conclusion: Keep the gifts but make them lifestyle relevant to today's workforce...and reward them sooner!
The Process Before the Prize!
There are three driving factors in meaningful recognition of service achievement:
* Communication
* Presentation
* Inclusion
A well crafted message from the CEO can be a keepsake greater than any gift.
What would it mean to an operational employee if the VP were to enter the warehouse and gather his team around! To then put her arm around him and to promote his professional achievements and the way his experience at the company has evolved his personal life.?
You wouldn't recognize service in just one department nor would you recognize service of only Headquartered employees. So why would you have separate anniversary programs in your international locations. Sure, the gift selection will be different in Asia Pac, the EU, etc. but the program branding and communication needs to be globally consistent. Most international business affiliates come from acquisition. The best way to make them feel welcome is to recognize them in the same manner you would your Home Office Manager.
Why don't gift cards work for service awards? Find out next week in the second installation of this Blog Series!
Don't Forget to Remember
- Dave
References:
http://www.mcfrecognition.com/
Questions: dkovacovich@mcfina.com
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