Awards evolving as younger employees eschew traditional gifts, employers become more creative — but classics aren’t dead yet
Linda Karlson celebrated her 20th anniversary at forestry giant DMI this year by heading south. In addition to the more traditional Calvin Nicholls framed print, the human resources advisor also received the gift of time: 160 hours, or 20 days, of paid time off.
“I spent a month in the Caribbean and had a really nice print to hang on my wall,” she says. “Plus, I still have my regular vacation.”
DMI’s gift of time — ranging from five days for five years’ service to 25 days for 30 years — is among the increasingly different ways companies are rewarding years of service.
At Tri Fit, an Oakville, Ont.-based fitness and wellness provider, employee service awards take a personal tone. On their first day, employees receive a handwritten card at their home. After one year they receive another personal note and after five years they receive a personal poem written by one of the company’s owners.
“We actually had one staff that left our company one month shy of her fifth anniversary and she was devastated that she would not receive her poem,” says principal Veronica Marsden. The employee was thrilled when they invited her back to receive it as a surprise.
While pins, clocks and watches are still favoured by baby boomers and traditionalists, many HR practitioners and rewards suppliers say they are “meaningless” to younger workers. In focus groups, younger employees have made it clear they’re not interested in being rewarded for time, says Aidan Prince, organizational development specialist with the City of Guelph, Ont.
“(They) were almost making fun of it. You know, ‘Get real. A pin means nothing to me and, anyway, I won’t even be here five years from now,’” he says.
Guelph implemented an overall recognition program in 2008 in which an award is given from employee to employee for demonstrating corporate values. It’s immediate and meaningful, says Prince.
“They get the recognition right after they do something well and it’s specific to a task. It’s not just because you sat in your chair for five years,” he says, noting younger employees prefer a promotion or development opportunities after reaching those milestones.
Employees like choice: Vendor
Many people also want to choose their reward, according to Mike Byam, a managing partner at recognition provider Terryberry. Employees like to earn points, or be given a dollar value and then choose from an array of products, he says.
“Having some selection to what’s available and making it your own is what we expect,” he says. “People say this is a generation Y thing or a millennial thing. It’s not. It’s what we all expect.”
Many companies are also turning to public recognition of milestone anniversaries, says Byam. Terryberry offers a program, Give a Wow, that allows colleagues to praise one another online, while also alerting staff to upcoming milestones, whether they are two, eight or 19 years.
Bayshore Home Health, based in Mississauga, Ont., takes the personal approach by allowing employees to choose from a catalogue and having them receive it at a special dinner. Bayshore introduced employee service awards two years ago, starting at the third anniversary, as a way to recognize 8,000 part-time and full-time employees, many of whom work in clients’ homes and for multiple employers.
“We wanted to make sure those employees who don’t work under our roof and we don’t see all that often felt that they were part of Bayshore,” says Liz Davy, national HR director.
But traditional service awards can be outdated, costly and, more importantly, disengage employees, says Razor Suleman, CEO of recognition provider I Love Rewards in Toronto.
“(Companies) spend billions of dollars and they’re not getting any incremental results,” he says. “No matter what you give somebody after five years of dedicated service, it’s still not representative of the five years of blood, sweat and tears they put into your company.”
Suleman traces employee service awards back to the turn of the last century, when Henry Ford needed an incentive to keep workers committed to the assembly line. The promise of a gift they were unlikely to afford on their own — a grandfather clock, for example — was enticement enough to stick around. But that’s an antiquated approach in a knowledge economy.
“Rewarding and recognizing time served is not what really engages a knowledge-based workforce that’s very results oriented,” he says. “Imagine if you’re the top salesperson, you’re killing your sales numbers for five years and you happen to be hired on the same day as the average salesperson who just squeaked by — and after five years you get the same thing?”
Instead, milestone awards that focus on the culture of an organization are better, says Suleman. Labbatt Breweries, which gives employees a brew master’s mug on their first anniversary, is a good example.
“Instead of focusing on a base need, which a reward does, they focus on a higher need of the sense of belonging,” he says. “You are now one of us. The brew master has accepted you. And it costs (Labbatt) six dollars.”
New grads uninterested in service awards: Survey
Graduating students have very little interest in service awards, found a survey by I Love Rewards. To begin with, millennials expect to stay with their employers for an average of 8.9 years. And, even if they stay that long or longer, they would much rather earn travel rewards (84 per cent) than a service award such as a watch or pen set (17 per cent and bottom of the list).
Younger employees also want a choice in their rewards, choosing experiential rewards, gift cards or the option of making a charitable donation, found The Class of 2010 Survey Report.
Newfoundland-based insurance provider Johnson may be considered old school but Patsy Bradbury, HR advisor for rewards, says that’s still what many of her employees want. They receive traditional gifts at major milestones and gift certificates after 30 years. But the “service” award they appreciate the most is the one that comes every year: A staff appreciation award.
Johnson gives all 1,300 employees a gift and one day off. Last year, it was an iPod. While the gift is one-size-fits-all, it has created a “close family culture,” according to Bradbury.
“That gift is something somebody can enjoy and appreciate every time they use it — with the Johnson logo on it — and realize that’s where they got it,” she says.
Danielle Harder is a Whitby, Ont.-based freelance writer.
