Service awards can be popular and powerful or a breeding ground for cynicism
The vast majority of employers taking part in Canadian HR Reporter’s survey on total rewards offer service awards, with 83 per cent of 108 respondents stating they have such a program. And the vast majority — 88 per cent — increase the value of the gift as the worker’s tenure increases.
Canadian HR Reporter sat down with a number of practitioners who took part in the survey to discuss their service award programs.
Swing for the fences
Go big or go home. That’s the opinion of Brent Gordon when it comes to handing out service awards for long-term employees.
Gordon, the manager of HR for Midwest Surveys Inc., a Calgary-based oil and gas surveyor with 425 employees, said employees shouldn’t be left cynical about the value of service awards handed out by their employers. Employers can’t be cheap.
“That’s the wrong attitude, to hand out a token thing in recognition,” he said. “If you’re going to get into service awards, you better have your trunks on and jump right in. Otherwise, it’s best not even to give them one.”
At Midwest Surveys, service awards at the five-year level run about $150 and gradually rise to $600 and more after 30 years. Common items include digital cameras, barbecues, MP3 players and golf sets.
Fighting cynicism
Gerry Meyer, director of human resources at Minto Developments Inc., an Ottawa-based residential property management group with 1,200 employees, said there is always going to be a certain level of cynicism among workers when it comes to recognition programs, no matter what the company does.
“But they have to remember that service recognition is a privilege, not a right,” he said. Minto substantially revamped its recognition program in 2005 and picked a new supplier. By all accounts the changes have been successful and employees perceive the value better.
During the revamping, one of the ideas floated by a senior executive was to tie service awards to performance and only give them to employees who were performing at an appropriate level.
“But, rightly, we elected not to go that route,” he said. “In terms of designing a program that is going to minimize the level of cynicism, you have to come up with a program that is going to be perceived of value.”
The obvious route is to survey employees to find out what they want and value, and take steps to align the program with their desires. Meyer said he knew the company had done something right with the program shortly after it was launched.
“I knew we’d had a success when I had recipients from 2004 ask if they could trade their gifts in, because they felt the new catalogue was much more appealing,” he said.
Minto’s service recognition program starts at the 10-year mark with a gift worth $500. The value rises with time served, going as high as $4,000 and more as employees hit the 40- and 45-year service marks.
“We have people who have stayed with us that long,” said Meyer. “At that point, we work with them to find something that they personally would find gratifying.”
No logo
Daria Taylor shudders at the thought of giving a service award to staff with the company’s logo on it. Not because Taylor, the finance and HR specialist at Alberta Milk, a dairy promotion organization based in Edmonton with 35 employees, has anything against the organization’s logo.
“But part of our job here is promotion, so we have lots of promotional items,” she said. “Toques, hats, underwear, socks all (branded) with Alberta Milk. Every time something comes in, every staff member gets one. So they’re definitely not going to appreciate something else with a logo.”
Taylor said the company offers staff $100 per year of service, every fifth year, in the form of cash. So employees celebrating 10 years on the job get $1,000.
Give ’em what they want
June Read, communications and employee development manager at Southland Transportation, a school bus operator in Calgary with about 800 employees, said the company lets workers have pretty much whatever they want when it comes time for service awards.
The firm has a catalogue of awards workers can pick from. But not everyone finds something they want from the catalogue.
“Giving people something they don’t want isn’t really giving them anything,” she said. “What turns me on might not turn drivers on or mechanics. So we left it open for them to come to us with ideas, and it’s been very well-received.”
One of the unique awards was a ride in a hot-air balloon. One worker just wanted a George Foreman grill.
Employees get a gift worth $100 after five years, $200 for 10 and $300 for 15 years, and the amounts increase as tenure rises, she said.
Recognizing seasonal staff
Summers are a lonely time for Sarah Keech. In the winter, the HR co-ordinator at Snow Valley Edmonton, a small non-profit ski hill in the city, is surrounded by 350 employees. But as the snow melts, that number dwindles down to slightly more than a dozen.
Since employees are always coming and going, service awards might seem like a low priority. But Keech said many seasonal workers are celebrating milestones, and the company takes the time to stop and say thanks just like any other employer.
After three years, workers get a pin and a certificate. After five, they get a clock and a picture frame. Ten years is marked by a watch, 15 by a digital camera and 20 by a mantel clock. And returning staff are very appreciative of the awards, which are handed out at a dinner, she said.
“I’ve never heard anyone criticize what we do,” she said. “They know what we’re about, they know we’re not-for-profit and nobody here is making the big bucks. So anything we give them, they seem to appreciate it.”
She credits the company’s culture for the retention success.
“Luckily we’re kind of considered cool in the community,” she said. “And because we’re non-profit, we have to work things differently. We can’t pay big salaries so for many, a lot of the additional perks and bonuses outweigh the wages.”
For example, employees have the ability to ski free at other places, including in Banff, where a ski pass can run $60 a day. Employees also get free passes for their family to ski at Snow Valley.
“We kind of have to rely on what we give staff rather than wages,” she said.
On-the-spot recognition
Employee points program
One of the more unique on-the-spot recognition programs encountered in the survey was the one in place at the Holiday Inn Harbourview in Dartmouth, N.S.
Ryan Embrett, HR manager of the hotel that employs 120 workers, said it operates a point system for a job well done. Employees can recognize each other by filling out a form. A job well done earns points that can be cashed in for merchandise, including movie tickets, gift certificates and restaurant vouchers.
“Since we began this incentive program, probably a year-and-a-half ago, employees have gotten more and more involved,” she said. “There’s even more reason to go that extra mile for guests.”
Canadian HR Reporter sat down with a number of practitioners who took part in the survey to discuss their service award programs.
Swing for the fences
Go big or go home. That’s the opinion of Brent Gordon when it comes to handing out service awards for long-term employees.
Gordon, the manager of HR for Midwest Surveys Inc., a Calgary-based oil and gas surveyor with 425 employees, said employees shouldn’t be left cynical about the value of service awards handed out by their employers. Employers can’t be cheap.
“That’s the wrong attitude, to hand out a token thing in recognition,” he said. “If you’re going to get into service awards, you better have your trunks on and jump right in. Otherwise, it’s best not even to give them one.”
At Midwest Surveys, service awards at the five-year level run about $150 and gradually rise to $600 and more after 30 years. Common items include digital cameras, barbecues, MP3 players and golf sets.
Fighting cynicism
Gerry Meyer, director of human resources at Minto Developments Inc., an Ottawa-based residential property management group with 1,200 employees, said there is always going to be a certain level of cynicism among workers when it comes to recognition programs, no matter what the company does.
“But they have to remember that service recognition is a privilege, not a right,” he said. Minto substantially revamped its recognition program in 2005 and picked a new supplier. By all accounts the changes have been successful and employees perceive the value better.
During the revamping, one of the ideas floated by a senior executive was to tie service awards to performance and only give them to employees who were performing at an appropriate level.
“But, rightly, we elected not to go that route,” he said. “In terms of designing a program that is going to minimize the level of cynicism, you have to come up with a program that is going to be perceived of value.”
The obvious route is to survey employees to find out what they want and value, and take steps to align the program with their desires. Meyer said he knew the company had done something right with the program shortly after it was launched.
“I knew we’d had a success when I had recipients from 2004 ask if they could trade their gifts in, because they felt the new catalogue was much more appealing,” he said.
Minto’s service recognition program starts at the 10-year mark with a gift worth $500. The value rises with time served, going as high as $4,000 and more as employees hit the 40- and 45-year service marks.
“We have people who have stayed with us that long,” said Meyer. “At that point, we work with them to find something that they personally would find gratifying.”
No logo
Daria Taylor shudders at the thought of giving a service award to staff with the company’s logo on it. Not because Taylor, the finance and HR specialist at Alberta Milk, a dairy promotion organization based in Edmonton with 35 employees, has anything against the organization’s logo.
“But part of our job here is promotion, so we have lots of promotional items,” she said. “Toques, hats, underwear, socks all (branded) with Alberta Milk. Every time something comes in, every staff member gets one. So they’re definitely not going to appreciate something else with a logo.”
Taylor said the company offers staff $100 per year of service, every fifth year, in the form of cash. So employees celebrating 10 years on the job get $1,000.
Give ’em what they want
June Read, communications and employee development manager at Southland Transportation, a school bus operator in Calgary with about 800 employees, said the company lets workers have pretty much whatever they want when it comes time for service awards.
The firm has a catalogue of awards workers can pick from. But not everyone finds something they want from the catalogue.
“Giving people something they don’t want isn’t really giving them anything,” she said. “What turns me on might not turn drivers on or mechanics. So we left it open for them to come to us with ideas, and it’s been very well-received.”
One of the unique awards was a ride in a hot-air balloon. One worker just wanted a George Foreman grill.
Employees get a gift worth $100 after five years, $200 for 10 and $300 for 15 years, and the amounts increase as tenure rises, she said.
Recognizing seasonal staff
Summers are a lonely time for Sarah Keech. In the winter, the HR co-ordinator at Snow Valley Edmonton, a small non-profit ski hill in the city, is surrounded by 350 employees. But as the snow melts, that number dwindles down to slightly more than a dozen.
Since employees are always coming and going, service awards might seem like a low priority. But Keech said many seasonal workers are celebrating milestones, and the company takes the time to stop and say thanks just like any other employer.
After three years, workers get a pin and a certificate. After five, they get a clock and a picture frame. Ten years is marked by a watch, 15 by a digital camera and 20 by a mantel clock. And returning staff are very appreciative of the awards, which are handed out at a dinner, she said.
“I’ve never heard anyone criticize what we do,” she said. “They know what we’re about, they know we’re not-for-profit and nobody here is making the big bucks. So anything we give them, they seem to appreciate it.”
She credits the company’s culture for the retention success.
“Luckily we’re kind of considered cool in the community,” she said. “And because we’re non-profit, we have to work things differently. We can’t pay big salaries so for many, a lot of the additional perks and bonuses outweigh the wages.”
For example, employees have the ability to ski free at other places, including in Banff, where a ski pass can run $60 a day. Employees also get free passes for their family to ski at Snow Valley.
“We kind of have to rely on what we give staff rather than wages,” she said.
On-the-spot recognition
Employee points program
One of the more unique on-the-spot recognition programs encountered in the survey was the one in place at the Holiday Inn Harbourview in Dartmouth, N.S.
Ryan Embrett, HR manager of the hotel that employs 120 workers, said it operates a point system for a job well done. Employees can recognize each other by filling out a form. A job well done earns points that can be cashed in for merchandise, including movie tickets, gift certificates and restaurant vouchers.
“Since we began this incentive program, probably a year-and-a-half ago, employees have gotten more and more involved,” she said. “There’s even more reason to go that extra mile for guests.”
