Service Anniversary Awards – Again!

I don't know if it is just an easy target or one that is on my mind more than other typical enterprise reward programs.  Maybe because almost EVERY company celebrates service anniversaries it is just the most often encountered in my work. (see another post here.)

But I still come back to the fact that these programs are designed around a criteria that has nothing to do with the business issues facing companies.  I submit you could line up every service anniversary program in the world next to each other and no company could pick their program out of the pack.  Each one has the same schedule, same awards ( or so similar you could call them the same.)  But I can't believe each company has the same issues with their employees.

Some companies run the program to reinforce that the company values those employees who stick around which is fine.  But why not use the program to change something rather than just document something.  

What I mean is this…

If you're going to spend the money get a return.  The way in which most service anniversary programs work they don't provide ANY ROI.  I'll stick with that statement because few if any programs are designed around an objective – they are designed around a government tax allowance for these types of programs.  

Would you invest in a piece of equipment SOLELY because you get a tax break?  Probably not.  You'd want that machine to not only take advantage of the tax opportunity but you'd really want the machine to do the work you bought it for – new capability, new quality levels, whatever.  Your service anniversary program should be looked at in a similar light.

Here's where I look.  Map out your turnover based on how long people stay with the company.  What's the turnover in employees that have been with the company 1 month, 1 year, etc.  Is there a point at which turnover is highest?  Typically there is a pattern.  I consulted with a company who knew that if they could keep an employee past 18 months they typically would stay another 5 years.  Guess what, their service anniversary program awarded 1 year and 5 year milestones.  Kinda missing the point here eh? 

Why not have the program designed in such a way to start connecting with employees for 6 months prior to the 18 month "danger zone?"  Why not take the budget from the other anniversary award levels and put it into a communication and reward program for employees in the 12-24 month window?  If you can impact the employees in the danger zone you can increase your overall retention and not have to spend the same at 5/10/25 (although depending on your program you might.)

Don't run your program because the government says you can get a tax break – run your program to drive your business.  Rant over.