Many employers use long-service awards to reward staff loyalty and encourage retention according to a recent XpertHR survey. The awards vary from small tokens of appreciation to significant enhancements to the employee’s pay and benefits package. They are particularly common in the manufacturing and production sector, where 81.6% of employers offer them. Many companies have a series of awards at 5, 10 and 15 or more years’ service.
Awards usually take the form of a cash payment or vouchers, although gifts such as champagne, plaques, a hotel stay or flowers are among the ways in which employers show recognition for service. Another approach is to give an additional day of annual leave either for that year only or from that point forward, which can be worth considerably more than the cash awards listed below. Typical key intervals and cash values of long-service awards are as follows:
- Awards following one year’s service are rare, but firms often celebrate the occasion with cake. Some employers also mark years two and three of service.
- The reward for five years’ service is commonly cash or vouchers. The median cash payment, from an extremely wide range from £10 to £3,500, is around £140.
- After 10 years’ service, the range of cash payments is again very wide, with the median payment standing at £200 from a range stretching from £10 to £7,000.
- At 15 years, cash payments range in value from £10 to £10,500 with the median at £300. Payments of £300 are also recorded at both the 20 and 25 year mark, although more generous leave entitlement awards are also common at these stages.
Only a small minority of employers make long-service awards at 30, 35, 40 or 50 years’ service.
Staff Discount Schemes
One in three employers offer staff a discount on their internal products or services, particularly in larger firms. Firms typically provide a discount of between 15% and 50%, with the median discount standing at 30%. Reductions to the costs of both goods and various services can have great value for employees while at the same time benefitting the company.
Some companies offer a combination of perks and regular discounts. For example, at one shoe retailer, employees get a free pair of shoes each season and a 50% discount on other purchases. At one law firm, employees receive free legal services up to a point and discounted services thereafter.
Around one in four employers pay an annual allowance to staff who train and take on the important role of a first-aider in their workplace. The median payment is £150 a year.
How do you thank your staff for their long term loyalty? If you’d like to talk about the best ways to reward your staff, call us on 0118 940 3032 or click here to email us.