Have you started planning your organization’s 2011 service award program? The end of August brings both a relief from high humidity and the time to get started working on a budget and plan for awarding employees who will reach milestone anniversaries next year. In the past, many companies simply awarded cash to recipients who were happy to receive a bonus to commemorate an anniversary. Although younger professionals might accept the cash, most do not consider cash bonuses as a reason to stay loyal to an organization. I have three tips to increase retention of Generation X and Y employees as you plan your 2011 service award program.
Appreciate and Recognize Employees
According to the research WorldAtWork.org references in the article, “Study Finds Money Isn’t Everything to Workers,” the most beneficial impact on employee performance and retention is an increase in overall compensation that shows employee appreciation. As you put together your 2011 service award program, make sure that you consider how recognition will be given to employees and how your organization can show employees they are valued and appreciated.
Award Employees with Lifestyle Merchandise
Ray B. Williams supports this recognition idea in his article, “Money no longer the motivator for Gen X and Gen Y?” Williams explains, “A decade ago, Baby Boomer executives who turned to me for advice about career strategies were usually driven by simple motivator--lucrative financial compensation and getting the corner office and title. Today, Generation X and Generation Y, who aspire to be leaders, are driven by different lifestyle choices.”
Make sure when planning your service award program that you provide employees with a variety of lifestyle merchandise awards that appeal to younger employees. Merchandise based recognition programs conceal the value of the milestone being reached by and employee and help to make a service award more than just financial compensation for employee loyalty. When the value of an employee recognition award is unknown, your employees will tend to assign a higher perceived value to it.
Communicate the Service Program
Generation X and Millennial employees need to be aware of the service award program you have planned. There are several different recognition program supplements that can be used to communicate the recognition program and probably the best media include recognition websites and emails. Utilize your employee recognition website as a bulletin board for information on the goals of the recognition program and highlight positive employee behavior. Recognition emails can be sent to employees on their anniversaries and birthdays or thank employees for their contributions. Many younger employees are familiar with computers and will take advantage of information you post online.
In his article featured in Furniture World Magazine, John Schaefer voices his concern for providing a rewarding experience to Generation X and Y employees in order to increase retention. “The data overwhelmingly supports the fact that well-designed incentives will out-perform cash by more than 2 to 1, as well as carry far lower tax consequences,” states Schaefer. Take time to consider how your 2011 service award program will appeal to younger employees and you will be able to retain them in the long term with recognition, rewards and communication.