Stop I was reminded the other day just how stupid most service anniversary awards programs are becoming.  Here's the story.

A friend of mine just completed 10 years with a company.  He received a small box from the CEO.  No note, no certificate, just the box.  Inside the box was a very nice, two diamond (small diamonds) lapel pin.  

The punch line…

The company has a very liberal dress code – jeans and t-shirts allowed on many days.  The ONLY person who wears a coat (but no tie most of the time) is the CEO.  The person getting the lapel pin has worn a coat and tie maybe 5 times during his tenure – for client presentations.  So… where do you think the lapel pin will be 60 days from now?  Same place high school yearbooks and notes from your first love go to rest – some box, somewhere in the attic or basement – only to be seen when the big neighborhood garage sale comes around.

I know that the service anniversary program is a tradition, but so was running after DDT fogger trucks and playing in the pestiside laden smoke during the 60's (I know some readers remember that, c'mon.)  It's time to retire this tradition.

Back in September of 2008 I wrote a column on Incentive Magazine about this (link here) – I stand by the column.  The gist of it was that awarding employees for time is wrong – we need to reward them for growth.  Anniversary of time should be replaced with the recognition of their (and your) investment OF time.

Some food for thought.
  • The median tenure for employees age 20-24 as of January 2008 is… drum roll… 1.3 years (those are the new hires my fellow readers)
  • For those 25-34 years old the median tenure is 2.7 years (these are your future executives)
  • For employees age 25+ the median tenure is 5.1 years (this is the total employee base)

Source:  US Dept. of Labor September 2008

For those of us that are math challenged – median is not average.  Median means 1/2 the people are above that number and 1/2 the people are below that number.  So to state it more emphatically, half your employees in each of those categories will leave before the years shown.  Half your new hires will leave in just over a year.  Half your future managers will leave in less than three years and half your total employee base won't be around in just over 5 years. (special bonus hint – those that leave typically aren't your worst – they are your best.)

This means your "service anniversary" program immediately is worthless to most if not all your employees.  In fact, most Service Anniversary programs are designed around the IRS tax ruling on these programs.  The award is non-taxable to the employee and the company if they are given after 5 years.  So… most programs start the awards at 5-years in order to take advantage of an IRS ruling.  That's a good program design criteria.  But the numbers don't lie – most of your employees will never see the beautiful lapel pin or crystal vase you've chosen for their special day.

Read the article I wrote and think to yourself – am I just being stupid thinking our service anniversary program actually does anything?  You might not be stupid – but  your progam probably is.

In honor of service anniversary programs I leave you with this Bill Engval video – "Here's Your Sign"… you'll see the connection after watching…

(readers receiving RSS feed may need to click through to see video)

 

  • Sean

    Yeah, now where did I put that pin? I have to actually wear a suit today. Better yet, where is my suit?
    I believe that most of the people at the company I work for, who have been there for five years or greater, are all of the “Gen X” generation. What does that say about that (my) generation? Are we the last of our types, more “traditional”, scared of change, have the most to lose, or stand to be the ones who will control the companies if we can figure out how to work with the Y’s and Mill”s? I say, all of the above. I think if we don’t freak out and can keep a mindset of innovation, we are the best poised to take over. Currently, with a foot in the past and a foot in the future, we can temporarily bridge the gap until it is time to take the leap to the future side. When we are given the reigns, we have to be willing to take the leap. If we hesitate in the slightest, we are going to fail, as we are just looked as the same old, same old, and we lose any respect and street-cred. The new generations cannot relate to the older generational ways at all, but we can. That is an advantage I believe, but only because there is much wisdom and value in some basic/classic ways of doing things. For instance, there is something still intrinsically valuable in knowing how to look at someone in the eye and have an actual conversation. LOL, you say? Those who can communicate equally well with thumbs and vocal cords, and this mystical thing called “body language”, will have the ultimate leadership arsenal. You see, we get to “speak” a language that the new generations won’t know. It is a big secret club that we have, like our own Skull and Bones. We can talk to each other about important things, and then we can text the cliff notes versions to “worker bees”.
    The problem is, those “worker bees” are no longer just drone bees, doing whatever is asked of them and being content with it. They all want to be the queen bee, and have no qualms about jumping from hive to hive in search of some way to quickly achieve that. You are no longer “born” into your position, or even think that you have to earn it. Some of these new bees are smart and will play the right games, charming their ways into the hive with their outstanding Facebook page, Twitter messages, and their rock star status on Linked In. Many more will be stupid though, using those same “tools” to sting their way to the top, forgetting that they will die in vain.
    The fact is, there still needs to be a method of “earning” the queen bee status. You can’t just hand it to a guy because he is the most charismatic (cough, cough, Obama). How do we take those same “smart” ones and give them their platforms for showing off, while actually getting them to do something? What if management would Tweet about their accomplishments, or go out to their Linked In and rave about them for all to see? Why not take the video of their anniversary roasting and put it on You Tube so they could put it on their Facebook? Why not let them boast about where they used the extra week of vacation (which is actually my real motivation for the length of time factor) out on the company website, pics and all? Send the world a text about their awesome promotion. Isn’t that what we all really want, to brag about what we earned? These new generations have a need to be heard, be relevant, and be seen (but digitally, not in person). Harness that, and you have the recipe for longevity and productivity, I believe. The problem is, it will forever be a moving target. The tools are as fickle as the people using them. Facebook is only cool right now, and I suspect only for us X’ers and Boomers just figuring it out. As soon as they know we are on to them, they are off, conforming to their non-conformity. Constant innovation is the key. The beauty is, we have the ability to sit in a room and talk about it, figure it out, and then act upon it. We can stay one step ahead, if and only if, we act upon it.
    Who are the next smart/strong leaders? The generations that are coming of age now should be. They will have the advantage of growing up in an all digital world, with parents who like to take hikes with them, hug them, hang out with them, talk to them, and then post it all out on the internet. Kids that are taught that there is still a place for common sense, basic communication, and hard work should edge out the generations that seem to think the world is a stage and it should all be handed to them. Let us hope that is the case. Yes, I think (maybe slightly selfishly) that Gen X has the advantage right now. We have years of watching our parents and grandparents work hard, earning what they have and their right to retire. But we also get that nobody wears suits anymore, comes in to meet the baby, and cares about crystal clocks with the company logo on it. More importantly, we are super annoyed by those arrogant punks, who strut in, want it all now, text during the meeting, and move to their next job before completing a single project. We are on to you, and we are able to talk about you in our secret language, and will never let you rise to the top. Think of it as our own bee smoker that we are immune to. Do some real work, earn it, and we will make sure that your entire social network will know about how awesome you are.
    Thanks for the pin, I truly appreciate the gesture, but I am wondering how much the pawn shop will give me for it so I can take my wife to a concert. I want to put on my status that I am going to see Def Leppard, on the company…

  • Dave

    Wow, is this anything like saying to your wife or significant other, “Honey, since most marriages end in divorce, I have decided to not give you any anniversary gifts. And since everyone eventually dies, let’s forgo birthday celebrations too. Instead whenever you meet arbitrary goals I set for you, I will take you to a concert, or even better give you a $25.00 gift card to some random store at the mall.”
    Really, is that how you see service awards? Has it ever occurred to you that a lot of younger generation workers aren’t staying with companies because of the lack of appreciation!?!
    I am not saying the service award program is the end all, be all. BUT it is an important part of any organizations tools of appreciation.
    The key to any successful program is how it is presented and the meaningfulness of the award. Companies can find out what is important to their most valuable asset by giving them a choice of what they would like. Including a token that is representative of the company helps tie that accomplishment to the organization.
    These are parts that help create a culture of appreciation.
    Thank you

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