Top 5 Reasons You Should Be Giving Service Awards to Your Employees
Here are the top 5 reasons every employer should be giving out employee service awards!
1. Give Credit Where Credit is Due
This is in the number one spot because we believe it’s the most important. Think about your employees; they are the lifeblood of your organization. They’re the ones on the front lines, the ones interacting with your customers and suppliers. In all honesty your company probably wouldn’t be here without them – they deserve to be recognized for their efforts. The easiest way to express your appreciation for them is through service awards. This small gesture shows an employee in a huge way that you and your organization care about them.
2. Save Money
Odds are if you’re reading this article you’re a manager under extreme cost pressures. All organizations face them. From your everyday Ma & Pa shops to the Amazons and Walmart’s of the world. We’re all looking to reduce costs, but have you thought of service awards as a way to do this? Let me briefly explain using an example. Imagine you’re an employee and have worked at an organization for 5 years now. You are pleased to finally hear that you’re being recognized for your hard work and you get called into the HR Manager’s office. He then thanks you for your service and hands you a $50.00 bill. You are grateful and walk out of his office, however; with a simple calculation you realize that after working 5 years – a total of 1,200 days – you were worth a measly 4.2 cents per day to your employer! How does that make you feel? Now, let’s take that same $50 dollars, buy a service award personalized with the employee’s name, years of service and a message of appreciation and you now have an employee who’s proud of the organization he/she works for and is much more likely to be motivated going forward. Not to mention he or she will probably see the award every day for the rest of their working career unlike the $50.00 that was quickly spent and forgotten. You may be interested in our top 3 service awards under $50.
3. Motivate Employees
I dare go out on a limb here and say that ALL people like to feel appreciated. That’s a bold claim, but I believe it’s true – especially in the workplace. Any HR Manager will tell you that lack of appreciation for workers is often the root of most problems in a company’s labor force. The problems can range from tardiness and absenteeism to harassment and larceny. We’ve already established that most managers can’t afford to give a “big bonus,” but they can give service awards to motivate employees to do better. Studies have shown that employees who feel appreciated by their superiors are significantly more likely to work harder on a daily basis.
4. Retain Employees
This is a huge one! Do you know the true cost of recruitment? According to HR Magazine the cost of a bad hire can exceed $100,000. Losing a good employee creates many problems beyond the problem to fill the vacancy, including; increased stress on other workers, recruitment costs, severance costs, etc. Showing employees you care by giving consistent service awards will make them much more likely to stay – even if offered a higher salary by a competitor. The key here is to use service awards to shape the company culture into a culture of respect, unity and recognition. Employees who value this type of environment are usually more productive, creative and efficient and are much more likely to stay with the organization. Service Awards are key in showing employees that they’re appreciated.
5. Branding Your Business
You probably haven’t though about this one, but let’s think about it for a second. Who is your biggest marketing agency? YOUR EMPLOYEES! If your employees feel valued and proud of the company they work for, then they’re much more likely to share your goods and services with a friend. Not to mention if they’re proud of the service awards they’ve earned from your company they will display them in a prominent place in their home or office. This gives potential customers the opportunity to be exposed to your brand while showing current customers that you care about your employees. Take a look at this article for more information about branding your business through awards.
If you’re not giving out regular service awards to your employees then you’re missing out on a big way to reduce costs, motivate employees & build your brand. The perceived value of service awards stretches your dollar MUCH further than a raise or bonus would and improves employee moral and motivation for a longer period of time than a cash bonus. Service Awards help reduce employee turnover and help create a caring understanding company culture.
If you have any success stories involved in giving service awards we’d love to hear about them. Drop a comment below or contact us at Gem Awards.