Thank you for your interest in Service Award Programs.
We believe this will be helpful when developing your individual program.
What is a Service Award Program?
It’s a program that allows companies to recognize and reward their staff for their length of service. Typically awards or gifts are given out for every 5 years of employment.
Recognizing employees for their length of service isn’t only about making them feel good; it’s good for your organization as well. Service Programs improve retention by boosting morale and motivation within your walls. Companies who recognize their employees for years of service know these programs have the power to motivate their entire staff, and in the end provide great success for their organizations.
How Much Should You Budget for Your Program?
This can vary depending on the number of employees you have and the cost of the items you reward them with. It is very prudent to set a budget for each year of service and choose gifts that fit within that price range. As these items are typically given out every 5 years, the award amount increases with each level and the gifts become more valuable the longer the employee has been with the company.
A Sample Budget May Be:
5 Year – a gift valued between $100 – $200 per person
10 Year – a gift valued between $200 – $300 per person
15 Year – a gift valued between $300 – $400 per person
20 Year – a gift valued between $400 – $500 per person
This is just an example; any denomination can be used for your budget.
What you need to consider when determining your budget:
- Number of employees that will receive awards each year in each category.
- Type of award/cost.
- If tangible items, who is providing the rewards?
- How you plan to hand out the awards, if it will be at a ceremony then these costs need to be considered.
- Staff hours involved to set and to carry out the program.
- Communication and marketing costs for the program.
- Cost of shipping rewards if necessary.
Once you have worked through these questions, it will give you a clear idea of what your budget should be.
How to Create an Employee Incentive Program
- Determine the team of people who will be designing and implementing the program. Typically Human Resources employees are in charge of this program.
- Set a budget. This should include all incentives/prizes, marketing pieces to be sent out to the employees explaining the program and administration costs.
- Determine how often your employees will receive their Service Awards. Annually? Every 5 years?
- Determine the awards. They can be an actual award (trophy or medal) or special items (promotional items such as watches or clothing). Work with a promotional company to help develop your program and choose awards.
- Set up a marketing program to inform the employees of their award. If you offer choices, be sure to include all options in your information to them. This can be done via a brochure or a website created specifically with the products available.
How Level 2 Can Help
Once you have the basic outline of your program developed, we can help you put together the rewards that will wow your participants. We will work within your budget, can create catalogues of the products and also work with you on the different procurement methods available.
Call us today for more information, and assistance on developing the right program for your team.