Dear All,
I need your inputs in drafting long service award policy for my organization. I searched alot on the same but not happy with the policies I got on the Cite HR.
Can someone help me in drafting the Service Award Policy which is been practised in Indian organizations with market data and cost sheet.
I will look forward to your response.

From United States, Charlotte

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Dear Shivani Grover,
You can start from 3years...
For completion of 3 years gift or gift voucher worth Rs.3000
For completion of 5 years Rs.6000
For Completion of 10 years Rs.15000
For Completion of 15 years Rs.25000
for completion of 20 years Rs 40000 and so on..
Disburse this amount in the annual day function that too infront of his family members .
Publish photos in the in house magazine and greet them for long association with you.
Excellent Hr Services,

From India, Coimbatore
in stead cash awards, they can be presented with momentos (silver or gold plated), wrist watches engraved with company logo in the dial, etc plus certificate by CEO or top official. However cash incentive may be in addition to the gifts. The long service intervals may be after 5 ys, 10 yrs, 15 yrs, 20 yrs, and so on.

From India, Lucknow
Long service award is an excellent platform for recognising the loyalty & contribution of employees over the years.It can also be used as a brand building tool for new employees to demonstrate the organisations spirit of showing care & concern for their long serving employees.

the scheme would revolve a lot on the following parameters:

-no of employees

-% of employees who will be entitled to such rewards(linked to attrition levels )

-organisation commitment to the cause in letter & spirit

-white collared vs blue collared staff strength


The reward should be substantial & an employee should be able to feel that he has been recognised for his loyalty & contribution.Thus here one needs to think from an employees prespective as well.

Paying out cash rewards ( these may not impress employees at Sr level as it would involve TDS which may eat around 30% of the reward). Moreover keeping in mind the salary levels /grades of employees the quantum of reward may not excite them.Thus we could use a combination of the following:

-handling over of gold/silver coins ( Eg 10 gms,20 gms,25 gms) linked to no of years .This would also aid the family during their time of need and for childrens marriage.

-sponsor family holiday for domestic/international locations depending on no of years of service

-give Bonus leaves linked to no of years in service say 10 days extra leave for 5 yrs completion & so on

-give away the awards at an annual gathering in presence of the family of the said employee,infact the couple should be called up on the stage and jointly awarded the same.I am sure we will agree that the family is an equal contributor to the employees success & tenure.

-A citation /trophy along wiht a framed family photograph capturing the said proud moment .

-make the family of the member feel important by sending a car to pick up the family from home for attending the function & then drop them back at home.The best way to touch an employees heart is to give special consideraiton to ones family as ,how you make an employee feel is more important than what you say to him.

-send a flower bouquet to an employees residence thanking him for the faith he has put in the organisation over the years & has continued his professional journey with it.

-link certain perks/benefits with tenure in employment ( scholor ship for childs education, subsidised loans,soft furnishing benefit,white goods,etc)

-extended medical benefit coverage linked to tenure

The list to make an employee feel special is un-ending and a lot depends on an organisations budget & willingness to contribute & appretiate.

Having said this such rewards should be implemented keeping in mind the response of the employees as he needs to feel special on receiving the said recognition & the bottom line being that the reward should make him feel valued .

From India, Mumbai
Long Service Award Policy

You can frame the policy as under:

The company wishes to recognize employees who have put in long years of service in the Organisation. Every year at the end of the year the HR Manager finalize the list of people who are eligible for long service awards and arrange to give the awards during any gathering such as annual day, sports day or monthly performance day.

In recent times cash award is most appreciable. Along with the cash, you can give the photograph in a good frame of the individual receiving the award from CEO. and a certificate mentioning the number of years of service completed in the company.

Eligibility for Long service Award could be 5 years.

And on completion of 5 years of service ............Rs.5000/-
On completion of 10 years of service ............Rs.7500/-
On completion of 15 years of service ............Rs.10000/-
On completion of 20 years of service ............Rs.12500/-
On completion of 25 years of service ............Rs.15000/-
On retirement after minimum 10 years service ......Rs.20000/-

You may modify the figure as per your convenience.

From India, Mumbai
Thanks Everyone. Can anyone share a sample policy as I have to share the same stating the policies followed by some reknowned brand in India. Look forward to your responses.
From United States, Charlotte

Policy Title
Long Service Award Policy
HR Policies
Amendment Effective from
December 1, 2002

Scope: This amendment aims at the following :
a) Extending the Award to employees who have completed 20 & 25 years of service
b) Standardisation of awards across levels depending on period of service and,
c) Institution of cash award for employees completing Long Service.

Amended Provision/s: The “Eligibility” & “Entitlement” stand revised as follows ;

a) Eligibility: An employee will become eligible for the award after having put in 5,10, 15 20 & 25 years of continuous service in the company and/or its subsidiary companies.

b) Entitlement : Each eligible employee will be given a “Certificate of Appreciation” by the Management in addition to the cash award , as below ;

Years of Service
Cash Award
5 Years
Cash Award of Rs.5,000/-
10 Years
Cash Award of Rs.10,000/-
15 Years
Cash Award of Rs.15,000/-
20 Years
Cash Award of Rs.20,000/-
25 Years
Cash Award of Rs.25,000/-

From India, Bangalore
hi all,
i am appointed to prepare the long service award, this is my first time of doing , please be advised me how and things need to prepare. thanks and best regards
my email is , maylebach@gmail.
May May

From Vietnam, Ho Chi Minh City
Dear Shivani,
The decission of long service award is good move by your organizationin. This gives an impression to the employee that organisation is recognising and any award in this regard boost the motivation level.
There are several ideas have been supplimented by the community mebers. Now it is your duty to place the ideas before your top managemnt to decide one. It is always good to for a simple one and make the single policy for one to all. Your organisation has to take the decission what length of year to be considered for Long Service Award.
You can decide for a Certificate and memonto engraved with name of the organisation.

From India, Mumbai

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