The Great Workplace Toolbox

Self Assessment - Exercise - Perspectives - Examples - Back to the Toolbox

Self Assessment

1. Does your organization have a difficult time retaining employees? Is that normal or unusual for your industry?
   
2. Do you track turnover and/or your cost-per-new hire?
   
3. Why would an employee want to stay at your organization long-term?
   
4. Do you publicly and/or privately recognize employees for their length of service with your organization? If yes, how?
   
5. Are employees afforded additional benefits (i.e. lower health insurance contributions, more paid-time off) based on their years of service?
   
6. Do you have a collective bargaining agreement that defines how employees with more service are to be treated by the organization?
   
7. The longer an employee stays with your organization, the more productive and valuable they become. True or False?
   

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Exercise: "What do you like about working here?"

Identify the individual with the most tenure at your organization, your most recent new-hire, and an individual somewhere in the middle in terms of years of service. Ask all three the same question, "What do you like about working here?" How different are their responses? Do their answers provide any insight into how you can better retain new and long-term employees?

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Perspectives

Service awards are perhaps one of the most common forms of recognition given to employees. Awards may be presented at an annual awards banquet, employee names may be listed in a company newsletter, or the appreciation may be reflected in one’s paycheck or benefits statement. 99% of NorthCoast 99 winners reward and recognize employees for their length of service. However, the 2005 ERC Job Attributes Survey revealed some interesting insight into how top performers prefer to be recognized (see tables below).

On average, the 515 top performers who participated in the study rated rewards and recognition for individual and group performance as noticeably more important than service awards in terms of what they look for in a job and what motivates their performance. That's not to say that recognition and rewards for length of service aren't important to top performers; however, it does suggest that organizations that only recognize employees based on years of service may be missing the mark when it comes to retaining and motivating their best employees.

According to the results of the 2005-2006 ERC Policies & Benefits Survey, on average, Northeast Ohio employers provide employees service awards in 6 year intervals. Popular awards include jewelry/service pins, gift certificates, cash, predetermined gifts (i.e. clocks, paperweights, mugs, etc.), and a luncheon or dinner. Some organizations also provide a certificate of achievement, travel vouchers, clothing, and even time off. These are all great examples of service awards; but again, if a service award is your organization's only form of recognition, you may want to consider additional alternative rewards programs tied to performance.

Another thing to consider is whether your service awards encourage your best employees to stay with your organization. Are you giving your most valuable and talented people more reasons to stay? Are your long-term employees truly some of your best? If not, you may want to think about adjusting your service awards program to align more with what motivates and supports your top talent's needs.

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Examples

• Wickliffe Country Place makes a bonus payment to employees on the fifth anniversary date of employment, based on the average number of hours worked per week, and increasing at intervals of 5 years.

• Quest Diagnostics demonstrates appreciation for years of service during "Recognition Week" each year in May through various forms of thank you cards, recognition pins, and gift selections. Years of service are celebrated at 1, 3, and 5 years, and then in 5 year intervals.

• At their annual Associate Appreciation Dinner, Shearer’s Foods honors associates for service anniversaries and for perfect attendance for the past year. Employees are also highlighted for their years of service in the company newsletter.

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