How would employees like to be appreciated for spending years in a company? A cash payment, more days off, or how about an overseas trip or a Rolex watch?
Long service awards have been a great way for companies to recognise employee loyalty and commitment. But with the workplace changing fast and the average job tenure shrinking, are long service awards outdated?
Last year, Singapore-based restaurant operator Paradise Group lavishly rewarded more than 330 employees with Rolex watches and Suisse gold bars. The luxury watches were for employees who had been with the company for 10 years or more, while the gold bars went to those who had worked five to nine years.
On the other end of the spectrum, social media users have complained about receiving only small cash tokens, lunch with a senior executive or nothing more than a printed certificate. Who hasn’t heard a colleague quip: “Just give me cold hard cash!”
While a grand gesture of appreciation is certainly heart-warming, it sparks a lively discussion about whether we are still celebrating employment milestones in an effective way.
Not a one-size-fits-all approach
Certainly, it depends on one’s industry. In sectors such as F&B and retail, where long-term wealth creation through equity is not feasible, leveraging the traditional format of long service awards is crucial. These industries often have a larger proportion of older workers, for whom such recognition holds significant value.
Furthermore, these conventional awards serve as a tangible symbol of the company’s appreciation, fostering a sense of belonging and stability among employees. This is particularly important in industries with high turnover rates.
But if younger employees are not expecting to stick around as long as five years – often the first milestone – should companies write them off as job hoppers and reward only those stay? Are long service awards more needed than ever to incentivise loyalty and retain institutional knowledge?
There’s a compelling argument for rethinking the criteria, timing and format of staff recognition awards in today’s fast-paced work environment.
Instead of long service awards, why not simply have service awards starting perhaps at two years? Acknowledging “mini-milestones” can be incredibly motivating, and can keep the new generation of workforce engaged and their morale high.
It becomes about celebrating every kilometre of a marathon run, not just the celebration at the destination.
No need for extravagance
Start-ups and enterprises that cannot afford extravagant gifts, or those that have a large majority of younger employees, should not feel inadequate. It is important to recognise that the value of the gesture lies beyond its monetary worth.
For younger employees in Singapore, who have often grown up in an era marked by relative financial comfort and stability, the allure of tangible, extravagant gifts may not hold the same appeal as it might have for previous generations.
Experiences, personal growth and work-life balance may appeal more than material possessions. This demographic segment of the workforce is more motivated by opportunities for professional development, creative independence, and a workplace culture that aligns with their values and lifestyle.
The true essence of an employee reward lies in the intent behind it – the sincerity and thoughtfulness of the recognition that truly resonates with and motivates employees.
Instant and personalised rewards
Instead of handing out expensive gifts every few years, enterprises should focus on creating a workplace that continuously offers avenues for instant and personalised rewards and recognition programmes.
Experiential rewards are one such alternative. Instead of traditional cash bonuses or physical gifts, adventure trips, spa days, concert tickets, and even gourmet dining experiences can provide employees with opportunities to make memories and share experiences with their loved ones.
Professional development opportunities, such as paid training courses or trips to overseas conferences, could also appeal to employees who value growth and learning. This benefits both the employees and the company in the long run.
In response to the growing demand for work-life balance, companies can also consider greater flexibility in working arrangements as a reward, such as additional options for remote work or more paid time off.
Companies can also give employees the choice to select more customised rewards that align with their hobbies or interests. Personalisation is key in modern reward systems.
Offering equity and stock options as a reward is also becoming more common in start-ups and tech companies. This not only serves as a financial incentive but also helps in fostering a sense of ownership and investment in the company’s success.
No one stays for a long service award
Cynics may scoff: Isn’t one’s monthly salary or annual performance bonus enough “instant” reward? Wouldn’t rewarding employees at every turn diminish the value of service awards, more akin to a “participation trophy” than actual recognition?
The truth is no one really stays in a company with an eye on the long service award. It is but one display of corporate culture – how employers recognise and appreciate their employees.
Rethinking service awards is an opportunity to keep them relevant in today’s evolving work environment and think how employers can cultivate a more inclusive, motivating, and sincere appreciation culture.
In the modern workplace, every milestone, big or small, is a step worth celebrating.
The article first appeared in CNA.