The Proper Role for Years of Service Programs

Recognize This! – Years of Service acknowledgement does not equal strategic employee recognition.

Part of my role as head of consulting with Globoforce is to help clients educate others within their organization that having a Years of Service program (also known as Long Service or Milestone Anniversary) is not the same as a strategic, social recognition program.

This article called this topic mind, especially this statement:

“As retaining talent is increasingly becoming a challenge, companies are offering incentives to reward employees who have completed a certain number of years of service. Termed as long service award policies, these perks encourage employees to stick to their employers for a longer term, according to HR experts.

“’Such awards are granted to employees in recognition of their long period of service with the company and their loyalty towards the employer. They encourage employees to serve the organisation for sometime more,’ said an HR official with a foreign investment bank.”

Let me ask you this – if you were undervalued, unappreciated and unfairly compensated for the work you do, would knowing that in another year you would receive a 5 Years of Service award keep you at the company if a better offer came along?

The honest answer for most is a strong, “No.” Why? Years of Service anniversary celebrations are simply too infrequent and not tied to a meaningful reason for recognition. Employees crave frequent acknowledgement of their contributions and achievements, not a five-year anniversary celebration of their decision to not leave the company.

Research reported in Harvard Business Review put it this way:

Thirty-five percent of workers and 30% of chief financial officers in an Accountemps poll cited frequent recognition of accomplishments as the most effective nonmonetary reward. Thanking people for their hard work and commitment is the key to making them feel appreciated.

“‘Because few people expect much in the way of reward these days, a small but personalized thank-you can have a big impact,’ says Steve Richardson, founder of Diverse Outcomes and former chief talent officer for American Express. ‘Even when I send a recognition note to a big group or team, I try to add a personalized paragraph in each person’s email, so it’s highly tailored to the individual.’”

Yes, Years of Service programs have a place. Employees expect to have their major milestones acknowledged. But far more benefit can be derived from a truly strategic recognition program, the five characteristics of which are described by the Great Place to Work® Institute as:

  1. Get personal
  2. Be specific
  3. Don’t be exclusive
  4. Invite peer-to-peer recognition
  5. Promote recognition at the top

Have you received a long service anniversary award in your career? What about regular, ongoing recognition? Which means more to you?

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