Need to know:
- Long-service awards can form part of a wider employee motivation and recognition strategy.
- Recognition dates have become more frequent, with some employers now celebrating employee service annually.
- Long-service awards have developed to offer personalised gifts for staff, such as e-gift cards, rather than a pre-determined reward.
Long-service awards have traditionally been used as a motivation and retention tool, typically celebrating employees that remain with an organisation for 10-, 15- or 20-plus years, as part of a job-for-life culture. However, with employees now moving jobs more frequently than in previous generations, are long-service awards still relevant? And is this type of reward still valued by employees?
Changing the goalposts
Long-service awards are most effective when integrated and aligned with a motivation strategy, or as part of a wider employee value proposition, rather than treated as a standalone benefit. Bill Alexander, chief executive officer at Red Letter Days for Business, says: “It’s still a day [the employer] can do something special on, but it’s got to be part of a much bigger portfolio of work.”
Alexander uses the analogy of Valentine’s Day: a couple cannot build a relationship solely on the basis of celebrating Valentine’s Day, however, having a day of celebration as part of the relationship can be beneficial. Applying this theory to long-service awards, employers should regularly recognise their staff, and use long-service awards to celebrate landmark occasions and to encourage employees to talk about their successes and achievements.
Recognition dates have generally now become more frequent, with employers celebrating staff at milestones such as one, three or five years of service.
In addition, technology is helping to streamline the administration involved with long-service awards. This includes more automated processes, such as digital reminders to line managers about upcoming milestones among their reports, as well as more software-based options to help communicate recognition, making use of employee forums, hubs and staff intranet sites.
Personalised reward
Employers are now putting more effort into tailoring their long-service offering to ensure it is relevant for their workforce, says Iain Thomson, director of incentive and recognition at Sodexo Benefits and Rewards Services. This could include conducting a review or gaining employee feedback to see what staff would value, what they expect to receive, and how they want to be recognised.
Jamie Clarke, incentives and motivation product manager at Edenred, says: “Every employee likes to receive recognition in different ways and it’s not a one size fits all. For employers to maximise the benefit that the individual is going to get, it does need to be tailored and consider that individual.”
Long-service awards are also more likely to be steered, led and communicated by direct line managers to provide a more personalised approach to recognition, adds Clarke. “It will be a personalised celebration rather than financial remuneration,” he says.
Tailoring a long-service award can be achieved through the communication surrounding it, as well as the gift given. For example, communications could include a presentation in front of peers, a formal announcement that is initiated by HR but includes input from a line manager, via email, during a one-to-one meeting or through social media platforms where other employees can comment and contribute.
Rewards should also offer flexibility and choice for the employee. Popular gifts include instore vouchers, multi-choice high street vouchers for retail stores and activities, e-gift cards and experiences. A gift that employees can access and use immediately suits modern consumer culture, says Anthony Mortimer, business incentives manager at House of Fraser for Business.
Often, employees may place greater value on the fact that they are receiving a gift rather than the physical gift itself, with smaller, less expensive rewards, such as an extra day’s holiday, also becoming more common. For employees who do achieve a longer term of service, such as 25 years or more, an evening event or dinner can prove to have a more substantial impact on employee motivation.
Although employees now tend to move organisations more frequently than in previous generations, long-service awards still have a role to play in benefits strategies; after all, recognising the time and effort that employees contribute to an organisation can be an integral tool in attracting and retaining key talent.
