Honoring employees for years of service as part of a service recognition program is a long-standing part of the history of business in America. Many organizations regularly thank their employees for coming to work year in and year out, which alone deserves a reward.
The practice of recognition has its benefits. Two of the most important benefits to a service recognition program are increased employee engagement and lower turnover. Recognition programs are very good at accomplishing both of these goals.
What does having an increase in employee engagement mean to a business?
First it is important to understand that the word ‘engaged’ describes employees who are mentally and emotionally invested in their job. These employees come to work with their thinking caps intact. They work harder and faster and care about their work. Service recognition programs have been proven to increase the level of employee engagement, overall, in an organization.
Business is better when employees are engaged. According to The American Management Association, engaged employees are more productive and lead to an increase in profitability. They also have better relationships with customers, leading to higher customer satisfaction levels.
Service recognition programs also decrease turnover. The cost of recruiting and training a new employee for a key position is costly. According to Zane Benefits and the Center for American Progress (CAP), the average cost to hire a new (exempt) employee is six to nine month’s salary.
- 16% of annual salary for high-turnover, low-paying jobs (earning under $30,000 dollars a year). For example, the cost to replace a $10/hour retail employee would be $3,328 dollars.
- 20% of annual salary for mid-range positions (earning $30,000 to $50,000 dollars a year). For example, the cost to replace a $40k manager would be $8,000 dollars.
- Up to 213% of annual salary for highly educated executive positions. For example, the cost to replace a $100,000 dollars CEO is $213,000 dollars.
Recognition programs help to relieve some of these costs by increasing employee retention. When employees are recognized for their time on-the-job, they are less likely to leave in search of a new employer.
Giving credit to an employee for his or her contribution on-the-job is gratifying on a personal and professional level. Service recognition programs are designed to impact employees on a personal level but also to benefit the corporation by increasing levels of employee engagement and lowering turnover rates.
Here are a few images of service recognition awards that we’ve created for various companies and their deserving employees. We can help you find and create an award that will fit your recipient and communicate just how important they are to your organization. Please contact us today.