GNcareers, from Gulf News

What are company service awards for?

What are company service awards for?Image Credit: Supplied

Contribution of service is weighed more heavily than length of service. Of course, service awards based on longevity would bury the concept of loyalty and productivity. Experts believe that length of service awards send the wrong message to employees.

Currently, long-service awards are changing shape, but their basic function of recognizing worker contributions and loyalty remains. At the same time, companies no longer strive for employee longevity.

A research scholar of Chennai conducted a study to find out if organizations are still rewarding employee longevity. She asked 600 managers, co-workers and customers of various businesses how their organizations handle length-of-service awards like anniversary dinners, premiums, plaques and gifts, and seniority increments. The result indicated that loyalty remains a strongly held and rewarded value in corporate India. More than 66% of respondents agree that it is important to recognize employee loyalty; 52% said length of service awards are necessary for employee morale; however, it should consider the consistent performance of the individual. The research indicated that seniority pay is irrelevant. 78% of customers expressed that public corporations must scrap the practice of giving increments or promotions based on length of service. Respondents view that service awards must have real value that reflects the employee's role delivery.

Reward concepts remain firmly in place in other companies, but these must evolve. Company culture must be built around performance and pay. Whether senior or junior, contributions must have a price. Recognition is key to excellence.

Problems come when HR managers meddle with line managers and put unnecessary procedures. The researcher found out that the measurement of service awards has to come from genuine delivery evident in financial performance.

Handy Hints:

• Recognition greatly impacts employee performance, morale

• Service awards must have real value that reflects role delivery

• Company culture must be built around performance and pay

Source: Dr. Pon Mohaideen Pitchai, Special to Jobs & Careers

The writer is a Dubai-based HR and Management Consultant