Seeking Ideas for Meaningful Long Service Awards: What Works in Your Organization?

Dear all,

We are planning to introduce long service awards in our organisation. Please share your views as per the practice in your organisation. I would like to know, what awards apart from certificates will help and create value for the following milestones:

- 5 years
- 10 years
- 15 years
- 20 years

Kindly let me know if you have a practice that really creates a sense of value.

Thanks,
Ritesh

Dear Sender,

Depending on the size of the organization, you can set the long service award as follows (as decided by your management):

- 5 years - Rs. 1000 worth gift
- 10 years - Rs. 2000 worth gift
- 15 years - Rs. 3000 worth gift
- 20 years - Rs. 5000/- worth gift

Regards,
L. Kumar

Thank you, Kumar.

Monetary benefits are definitely a good thing to offer. I have heard of companies providing cash vouchers based on the number of years completed with the company.

Guys,

Please assist me regarding the amount slabs followed by today's best-practiced companies.

Regards,
Ritesh

As far as the long service award is concerned, all employees are to be treated equally regardless of the position held. Personally, I believe that an employee who has completed 20 years of service should be awarded the long service award. Employees should be rewarded with a token gift like a silver Thali, bowl, or glass costing not more than Rs. 2000.00, depending on the financial condition of the company. Additionally, issue a certificate of appreciation for their long tenure with the company.

This is my personal opinion.

Thanks,
Janardan Bhatt.

Hi Ritesh,

A CERTIFICATE FROM CEO/MD

MOMENTO - SILVER THALI OF DIFFERENT TYPES AS PER YEARS OF SERVICE.

COMPANY'S SHARE - IT WILL MAKE SENSE OF OWNERSHIP. IF SHARES ARE NOT POSSIBLE, THEN GIFT VOUCHER/TRAVEL VOUCHER.

LONG SERVICE ALLOWANCE.

HAND OVER THE AWARD BY CEO/MD IN A GATHERING - LIKE ANNUAL DAY.

IT'S MY PERSONAL OPINION.

DEBANGSHU

In our organization, this policy is also in place. It is implemented as follows:

For employees who have completed 5 years:
A gold-plated tie pin with the company logo.

For employees who have completed 10 years:
The same tie pin plus 1 month Basic + DA.

For employees who have completed 15 years:
The same tie pin plus 1.5 months Basic + DA.

For employees who have completed 20 years:
The same tie pin plus 2 months Basic + DA.

Hi,

I have seen that gifts have better value than an amount. I agree with Mr. Kumar on the years, but the amount seems too low.

1. 5 years:
I have seen many organizations follow a nice watch worth Rs. 1500 to 2000. You can look at a pair watch.

2. 10 years:
Rs. 5000 worth of Silver items (The problem with silver and gold is that the price fluctuation will make it difficult to maintain uniformity).

3. 15 years:
10000 rupees worth of consumer durables like a small fridge, furniture, etc.

4. 20 years:
Rs. 20000 worth gift package, mostly consumer durables.

5. 25 years:
Rs. 30000 worth of consumer durables.

If you see, a person who has served for 25 years would have received gifts worth Rs. 67000, over a period of 25 years, an average of Rs. 2500 per year of service. This must be uniform.

Siva

Oh, I forgot to mention that we give a certificate of appreciation signed by the CEO and HR Head along with these.

Hi,

The certificate signed by the CEO is acceptable. However, why is the HR signature required?

I have come across situations where HR Heads, who have only been with the company for one year, were signing for employees with 25 years of service. Many employees did not appreciate this.

When the certificate is signed by the CEO, even if they are new, it is perceived with more credibility.

Siva

Long service reward is given to employees for their long association with the company. In some organizations, it is given twice: once upon completion of 15 years of service and then again at 30 years of service. The reward is emotionally attached and given in memory. As such, it is called a memento and not a momento. Since it is emotionally related, generally, it is given in the form of items that can last long so that the employee can remember their colleagues and the organization for a long time.

I do not have words to define it, but I would like to give an example. Suppose you are going to give a presentation to your very dear friend. How would you like to pay: in cash or in kind? So, the long service award, whether paid once or twice, should be in kind. What I mean to say is that the award is not related to financial value but rather to human value.

Dear Siva,

You are right. We can do away with that. I only gave the example of our organization.

Regards.

Dear Mr. Singh,

I appreciate your comments on long service awards for 15 years and 30 years. However, looking at the current market scenario where employees keep hopping from one company to another, hardly anybody sticks to a company for so long. Therefore, we are planning to introduce such awards for completing 3 years as well. In our company policy, 5 years and 10 years Long Service Awards (LSA) are already in place.

I would appreciate your views on the same.

Thanks and regards,
Jenny

Hi Jenny,

Escorts, way back in 1975, introduced service awards. They used to call it Service awards, not Long Service awards. Starting from 5, 10, 15, 25, and 30.

Three years is too short. In today's context, instead of starting at a three-year award, consider a holiday award with family at the end of 5 years. It may be a little expensive, but it binds the family into this.

Siva