Companies have been recognizing employees for their length of service since the late 1800s. Today these programs, which are utilized by 90% of Best Practice organizations, aren’t just limited to recognition of service anniversaries. They cover a wide range of accomplishments, from successful completion of onboarding programs to the achievement of milestones during an employee’s career to retirement.
The 2016 Trendicators Report provides conclusive evidence that formal service award recognition programs have a positive influence on employee perceptions and engagement levels, particularly among Millennials, who represent the largest segment of today’s workforce. The report is the result of collaboration between Engage2Excel and Dr. Jack Wiley, a leading expert in employee engagement research.
- Organizations with formal length of service programs enjoy engagement scores that are 25 points higher
- 74% of all employees believe service awards help employees feel valued and improve engagement
- 80% of 25-34 year olds believe service awards are effective and make people feel valued
- The most favorable ratings of service programs are reported by employees with less than 10 years' tenure
Program Quality Determines Effectiveness
All employee recognition programs are, of course, not equally effective. Employees who believe their formal recognition program is effective feel significantly more valued than those who perceive their program as ineffective. Of those who believe their program is effective, 91% report feeling valued by their company compared to only 18% who report feeling valued when working for a company whose recognition program they regard as ineffective – a 73-point difference.
At a time when many longstanding HR practices are being reevaluated in light of demographic shifts and fundamental changes in the nature of work, the Trendicators Report provides evidence that employee service awards can positively impact engagement levels and help employees feel valued.
Why does this matter?
A growing body of evidence shows that companies with higher engagement levels have higher profits and lower turnover rates. Conversely, a survey by the American Psychological Association and Harris Interactive revealed that 50% of employees who do not feel valued plan on seeking employment elsewhere in the next year.
These results send a clear message to HR departments and senior management: Service awards are an important component to your overall recognition and engagement strategy to drive enterprise success.
The 2016 Trendicators Report is based on a survey of 5,000 U.S. employees from all job types, with equal representation of gender, age group and racial ethnic origin. The margin of error for the survey is +/- 1.5% with a 95% confidence level.
Download the report