Employee turnover can be a big problem for businesses—especially in sectors where wages are lower and opportunities to progress are fewer, like retail and fast food. It can be difficult to address this problem if you don't have a dedicated HR team, but it's an important one to tackle if you want to maximise profits. If you're struggling to retain your workers, try reducing turnover with service awards. Here's all you need to know about this simple, effective and affordable method.
Why Are Employees Leaving?
As an employer, it can be difficult to find out the real reason why you're employees are leaving. After all, many are worried about telling the truth in case it affects their future references. While there are numerous reasons for employee turnover, one major one that many workers are afraid to share is feeling undervalued. Research shows that a whopping 76% employees who feel undervalued are looking for new job opportunities. Employees who feel that you value their work for the company are far less likely to leave for a new job.
How Do Service Awards Help?
A service award is an award given to an employee in recognition of their long service to the company. Traditionally, service awards weren't given out until an employee had worked at the company for decades. However, nowadays, turnover is much higher, so many employers choose to give out service awards at shorter intervals--including 1 year, 6 months, and even 3 months, depending on how low retention is. Taking the time to present an employee with a service award is a symbolic way to show that they're not being overlooked and that every day of their work makes a difference to the company.
What Should a Service Award Be?
Some of the best awards you can use to recognise service are custom plaques. Custom wooden, metal or glass plaques can be engraved with your employee's name to give them the essential personal touch that shows they're valued. They're affordable to produce in low numbers and at scale, making them ideal for both small businesses and large enterprises. Another benefit of plaques is that they'll be displayed in your employee's home, serving as a constant reminder of their value, even when they might feel dejected about work. You may also wish to combine a service award with a presentation ceremony, a small gift, or a cash voucher for maximum effect.