The latest figures from XpertHR show that businesses in the UK are now offering more monetary rewards for their long-serving staff, instead of company memorabilia. The shift comes as employees spend less time with a single employer. UK employees spend an average of 8.6 years in a role according to 2020 OECD data, while ONS findings show that under 35s were the most likely to change role between 2000 and 2018.
Those who do stay loyal to a business need to be rewarded appropriately. XpertHR found that two-thirds of organisations (66 per cent) recognise employee longevity with the offer of a long-service award. The majority of organisations surveyed (42 per cent) wait for five years to acknowledge an employee for their service, while 30 per cent wait for 10 years’ service. One in eight (13 per cent) require 25 years before recognising employees. Just one organisation surveyed starts their programme after one year.
For those businesses that recognise long service after five years, gift vouchers are the most common award and are worth an average of £100. Some organisations also provide physical awards at this milestone, including certificates, pin badges, champagne, flowers and photo frames.
However, there is plenty of variation in awards given across organisations. The maximum payment given by an employer surveyed is £5,000 after a decade of loyalty from an employee. Higher payments tend to be reserved for those with particularly long service – at 20 years’ service, more than one award in 10 (14 per cent) is worth £1,000 or more. For those employees who make it to 50 years’ service, a handful of organisations specified payments ranging from £1,000 to £5,000.
“With the length of service dwindling, especially amongst younger workers, it’s important to recognise those employees who are in it for the long haul,” said Sheila Attwood, XpertHR pay and benefits editor. “But employers can’t rely on a carriage clock being an appropriate recognition of such dedication and loyalty. Instead, many are realising the impact a financial reward can have for their people, providing an opportunity for their team members to treat themselves. That isn’t to say that other rewards aren’t appreciated, like a hamper or some additional annual leave, but rewarding employees with a gift they can choose how to use might be more enticing to some employees.”
That said, Attwood believes employers shouldn’t wait for the 10 or 20 year marks to recognise hard work and dedication to their organisation. “Regular recognition and rewards are crucial to creating and maintaining employee loyalty and engagement at all times,” she says.
