Long Service Awards—What Are They, And Why Are They Important?
Loyalty programs are common among stores today. They let you earn points when you shop and send you coupons and special offers to thank you for your loyalty. You usually get special gifts on your birthday and anniversary, too. Long service awards are similar to those special gifts because they reward people for their loyalty to your company or organization. Many people change jobs so often today that they never stay in one spot long enough to get a milestone award. Giving long service awards to your employees is one way to increase the chances that they’ll stay with your business for the long haul.
Reward Major Milestones
A long service award gives you a way to reward employees who meet major milestones with you. You use the awards to celebrate the first five years that the worker spent with your company. Most employers also pass them out at the 10 year mark and again at the 20 or 25 year mark as well as after 30 years of service. The longer that the employee stays with you, the more you want to splash out on their award. As 47 million people in the United States quit their jobs in 2021, it’s clear that employees don’t want to waste time with employers who fail to recognize them.
One thing you may not know about these awards is that the things you do or hand out at each milestone are different. You might remember your father or grandfather getting a gold watch or a fancy mantle clock when they retired. Though you can still give out those gifts, you want to look for other ways to thank your workers when they reach each milestone. You might give them a gift card after their first year and an extra day or two of paid time off after five years. Workers that spend 10 years or longer with you deserve a party or celebration.
Types of Gifts
You have loads of options when it comes to the types of gifts and awards you hand out. Long service custom awards let you create custom designs that no one else has. While you start with a basic design, you can add a different picture, change the font, and use other methods to customize the award for your company. Some employers hand out gift cards that pay for meals at local restaurants or hotel room stays. You might opt for luxury gifts such as a bottle of fancy champagne or offer a cash bonus, too.
Though you may not realize it, any monetary gifts you give out and gifts that are worth money are taxable. This includes gift cards and luxury gifts. Employees need to show that they received those gifts when they file and pay taxes on them. You can help workers avoid these problems when you add their gifts to their checks and take out the necessary taxes. This can also remind employees of the gifts when they file the next year.
Long service awards are more important today than ever before due to how many people job hop. The days of working for the same company for decades before you retire are a thing of the past. Employees now leave after a year or a few years to make more money and get better benefits. Using long service awards is a great way to boost morale and let your workers know that you are aware of all the things they do for your company. The awards also give employees something they can show off to their friends and loved ones.
Long Service Gifts for Loyal Employees
Loyal employees are a rare breed today. Many people are always on the lookout for greener pastures. They aren’t afraid to search for jobs when they have a bad day or take an offer if it means earning more money and getting more recognition. With the right awards, you can reward your workers after they spend a year with your company and let them know that they’ll get better gifts when they stay longer. Long service awards can include custom plaques and trophies as well as luxury gifts and cash bonuses.