Service Award Program

1. Service Award Program How to Re-Engineer Your

2. Dispelling Myths About Award Programs The vast majority of recognition programs are obsolete, according to a 10-year national study. In fact, many of them de-motivate rather than motivate. WHY? Many of them are based on concepts designed in the 60’s and 70’s and no longer meet either corporate objectives or employee needs. Here, we dispel some common myths about award programs…

3. Myth #1 – Logo emblems of gold and diamonds make the best award. • Since many employees eventually receive logo awards, such as “years of service” awards, they stop carrying recognition impact. Moreover, since employees no longer feel the same job security as in the past, they no longer have the same corporate identity. As a result the company logo is less important to them.

4. Myth #2 – Recognition programs incorporate award choices that employees really want. • According to one study, 70% of employees would choose something other than what they were offered. Some of the top choices include: - Electronics, Cameras, Camcorders - Watches, Clocks - Crystal, Silver, China and Kitchen Accessories - Sports and Outdoor Equipment

5. Myth #3 – A simple change in selection or awards will improve your recognition program. • To address employees’ changing attitudes, more companies are reengineering their recognition policies. - Establish goals and objectives and maintain management support. - Survey employees as to what they want and need in a recognition program. - Create a program based on employee feedback and input from program administrators. - Make recognition timely, rather than monthly, quarterly or annually.

6. Myth #4 – Companies should reduce or eliminate “years of service” awards. • Companies should not cut programs at random. Instead, they need to make all recognition programs more effective by aligning them with shifting employee attitudes and updating them annually.

7. Here’s how we can help… • We survey a sampling of your employees to find out what types of awards they prefer. We build a custom catalog of 100 to 200 items published to paper and a special Service Anniversary website that is linked to your Intranet.

8. Here’s how we can help… • On the service anniversary of the employee, we mail to the employee’s manager a recognition kit, which includes a letter from your CEO. Also included are some ideas for how the manager can personalize the recognition to the employee and make it more meaningful.

9. Here’s how we can help… • The employee will receive a special certificate allowing them to choose their favorite gift from the catalog, which they can view at the Intranet site and on special PC computer kiosks we provide at all locations. • They can order their gift on-line and have it shipped directly to their home.

10. Here’s how we can help… • Our suggestion for the merchandise awards is that we choose items that are all the same value REGARDLESS of the number of years the employee has worked, e.g., you set a value for each item, be it $100, $200, up to $400. That is the maximum average award value that is TAX FREE.

11. Here’s how we can help… As many managers have said, “Nobody works for 10 years to win a clock.” We agree. Many companies now feel that the person who works 5 years should receive as nice a gift as the 25 year employee. Of course, you don’t have to do it this way, but it certainly has positive benefits. When all gifts are equal, you send a positive message -- “All of our employees are important!”

12. Please browse through our demo Service Award Catalog at www.incentivesonline.com. We’ve included items that we think employees want. Items like Sporting Goods, Watches and Clocks, Kitchen Accessories, China, and Electronics.. HOME