Struggling to Create a Long Service Award Policy for Indian Companies? Need Your Help!

Hello Everyone, I am seeking your assistance in crafting a long service award policy for my company. Despite extensive research, I have not been able to find policies on Cite HR that meet my needs. I would appreciate it if someone could help me develop a Service Award Policy, which is in line with practices in Indian companies. Additionally, I would need market data and a cost sheet as well.

Your prompt response is highly appreciated.

Best regards!

You can start from 3 years for completion of 3 years, a 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 at the annual day function in front of his family members. Publish photos in the in-house magazine and greet them for the long association with you.

Regards,
S. Sethupathy, Excellent HR Services, Erode.

Instead of cash awards, employees can be presented with mementos (silver or gold-plated), wristwatches engraved with the company logo on the dial, etc., along with a certificate by the CEO or a top official. However, cash incentives may be given in addition to the gifts. The long service intervals could be set at 5 years, 10 years, 15 years, 20 years, and so on.

Regards,
Pon

Long Service Award: Recognizing Loyalty and Contribution

Long service awards are an excellent platform for recognizing the loyalty and contribution of employees over the years. They can also be used as a brand-building tool for new employees to demonstrate the organization's spirit of showing care and concern for their long-serving employees.

The scheme would revolve a lot around the following parameters:

- Number of employees
- Percentage of employees who will be entitled to such rewards (linked to attrition levels)
- Organization's commitment to the cause in letter and spirit
- White-collared vs. blue-collared staff strength
- Budget

The reward should be substantial, and an employee should feel recognized for their loyalty and contribution. Thus, one needs to think from an employee's perspective as well.

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

- Handing over gold/silver coins (e.g., 10 gms, 20 gms, 25 gms) linked to the number of years. This would also aid the family during their time of need and for children's marriage.
- Sponsoring a family holiday for domestic/international locations depending on the number of years of service.
- Giving bonus leaves linked to the number of years in service, say 10 extra days leave for 5 years completion and so on.
- Giving away the awards at an annual gathering in the presence of the family of the said employee; in fact, 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 employee's success and tenure.
- A citation/trophy along with a framed family photograph capturing the proud moment.

Making the family of the member feel important by sending a car to pick up the family from home for attending the function and then dropping them back at home. The best way to touch an employee's heart is to give special consideration to one's family because how you make an employee feel is more important than what you say to them.

Sending a flower bouquet to an employee's residence, thanking them for the faith they have put in the organization over the years and for continuing their professional journey with it.

Linking certain perks/benefits with tenure in employment (scholarship for child's education, subsidized loans, soft furnishing benefit, white goods, etc.).

Extended medical benefit coverage linked to tenure.

The list to make an employee feel special is unending, and a lot depends on an organization's budget and willingness to contribute and appreciate.

Having said this, such rewards should be implemented, keeping in mind the response of the employees as they need to feel special on receiving the said recognition, and the bottom line being that the reward should make them feel valued.

Long Service Award Policy

You can frame the policy as follows:

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

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

Eligibility for the Long Service Award could be 5 years.

- 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 a minimum of 10 years of service......Rs. 20000/-

You may modify the figures as per your convenience.

Thanks, everyone. Can anyone share a sample policy? I need to share one that outlines the policies followed by some renowned brand in India. I look forward to your responses.

Policy Title

Long Service Award Policy

Section

HR Policies

Amendment Effective from

December 1, 2002

Scope: This amendment aims at the following:

- Extending the award to employees who have completed 20 & 25 years of service.
- Standardization of awards across levels depending on the period of service.
- Institution of a cash award for employees completing long service.

Amended Provisions: The "Eligibility" & "Entitlement" stand revised as follows:

- 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.

- Entitlement: Each eligible employee will be given a "Certificate of Appreciation" by the management in addition to the cash award, as below:


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/-

Regards

I have been appointed to prepare the long service award. This is my first time doing so. Please advise me on how to proceed and what things I need to prepare. Thanks and best regards.

My email is [Email Removed For Privacy Reasons].

Regards,
May May

The decision of a long service award is a good move by your organization. This gives an impression to the employee that the organization is recognizing their efforts, and any award in this regard boosts the motivation level.

Several ideas have been suggested by community members. Now, it is your duty to present these ideas to your top management for them to decide on one. It is always best to opt for a simple approach and establish a single policy applicable to all. Your organization needs to decide on the length of years to be considered for the Long Service Award.

You can opt for a certificate and a memento engraved with the name of the organization.

Thank you.