LSA’s are still considered one of the most important forms of recognition for staff loyalty, acting as the foundation for most company’s ever growing reward and recognition programmes. Many organisations have taken the opportunity to modernise their company’s image through effective use of LSA’s in order to ensure that their rewards remain current, effective and valued.

Dr Wilson Wong of The Work Foundation Research Department revealed that “LSA’s are helpful at engaging and retaining staff but only when the award carries symbolic value”. For many employees LSA’s can be a deciding factor when considering whether to stay in their current employment or to look elsewhere. Employee Benefits highlight how the office hype which surrounds long service awards (eg ‘a trip of a lifetime for employees who reach 10 years of service’) can not only encourage and incentivise employees to stay with their current employer, but it also increases the recipients’ perceived value of the reward. Employers are now realising the importance of effective reward and the impact on enabling employees to choose how and where they spend their rewards, as over 52% of employees now prefer to be rewarded with gift cards.

One company that has inputted extensive time and effort into ensuring their LSA’s are highly valued is supermarket mogul Asda. During 2011 Asda introduced recognition of length of service on name badges for employees who have worked for the organisation one year or more. This increased the amount of public and colleague recognition and worked in conjunction with Asda’s annual ‘Big Anniversary’ event. Attendees of the ‘Big Anniversary’ event are those employees who reach 25, 30, 35, 40, 45 and 50 years of service, they additionally receive £300 each and an extra week’s holiday in their anniversary year. Kevin Trott, leader of incentive and engagement at Asda, revealed that “Long service awards have most definitely increased our colleague engagement and have a significant impact on our motivation mechanism”.

Incentive Magazine additionally supports the need for effective LSA’s, stating that employee’s want to know that they are contributing to the company’s overall vision. Despite 92% of company’s still offering years of service recognition platform’s Incentive Magazine revealed that only 17% still want their company’s traditional LSA programme. The introduction of rewarding staff for ‘months of service’ has been another increasingly popular method in trying to boost staff retention levels, as companies are trying to move away from the short-termism mentality and drive long term behaviours.

LSA opinions and examples may differ in terms of their specific methods, terminology and branding, but the underlying message stays exactly the same ‘There is still a need for effective LSA’s’. Companies should look to revitalise their long service programme instead of discarding it completely and it can be as simple as updating the rewards on offer to your workforce. With companies alike facing a year full of uncertainties, time is certainly of the essence. The clock may take time into its own hands but how you thank your employees for dedicating their time to your company is down to you… now is the time to reward staff commitment and loyalty!

The Telegraph revealed that it isn’t just the fact that there are pay freezes, cuts and financial instability it is the way in which companies are communicating these to their employees. The severe lack of communication, honesty and cohesion is having a devastating impact on UK worker’s morale. The Chartered Institute for Personnel Development stated that better communication between managers and workers could see morale significantly improve. Those companies who communicate the rationale behind their salary/bonus restraints have a better chance of keeping employees on side.

One in five employers related their reward decision to an individual’s performance and just over two fifth’s of employers failed to share the reasoning behind their company’s pay cuts, thus leaving employees feeling undervalued and isolated. The Telegraph revealed that basic communication channels seemed to go out of the window towards the end of 2011. Most managers chose to ignore the issue, despite extensive research illustrating the increase in staff satisfaction levels once their pay changes were explained. 

Despite 2011 seeing more pay freezes than any other year from 2008, positivity is possible - it all depends on the way managers communicate and motivate their staff. 2012 is set to be another year of “subdued pay rises” states Rewards Adviser Charles Cotton. He illustrates how 2012 will be an extremely tough challenge for maintaining staff commitment and motivation however, the key is to ensure employees are kept positive and motivated at work, as they will see their living standards hit. These revelations have sparked business leaders into action as many are now revising how they communicate their economic realities. Half of UK workers received a pay rise in 2011 and only 19% felt that it reflected their performance, this demonstrates the need for improved communication not only regarding pay rises but also with praise and positive news.

Supporting the need to revise financial communication Sky News also recently revealed that the UK will shed 120,000 jobs in 2012 – being labelled the toughest year for the UK jobs market in 2 decades. The hurdles may seem to be lined up waiting for many organisations to fall this year however, as Winston Churchill once stated “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

With January nearly behind us it is important to keep staff spirits at a high, ensuring they are engaged, motivated and aware of company goals and objectives. Communicating with staff when faced with obstacles in 2012 will have a far greater impact than burying your head in the sand. Rewards Advisor Charles Cotton states that considering workers could have received no increase or a pay cut in the current climate, effective communication between managers and staff could have seen a higher number of employees appreciating what they have got. “Only then might employees remain engaged with their work and motivated to perform well”

Vice President of the North American plant operations for Stryker Fred Lorestrani revealed that “engaged people feel good about coming to work every day” The medical supply mogul which employs over 20,000 employees stated that despite their sales increasing by 8.9% since 2009 their levels of employee engagement (which had reached 45%) was just not good enough!

Stryker devised and distributed an employee questionnaire, the Q12 Survey to its staff and this acted as the foundation for their employee engagement overhaul. Initiating monthly meetings including all levels of their workforce ensured that the entire organisation’s opinions were heard. Now with employee engagement levels rising to 57%, Stryker’s commitment to enabling their workforce to voice their opinions and ideas has not only aided production rates but it has ensured that their employee’s levels of motivation and engagement are constantly boosted.

Stryker revealed 7 key principles to help ensure a successful and effective engagement and recognition programme:

1. Be committed
   It is not just the responsibility of senior managers to ensure staff are engaged, it takes the commitment of the entire organisation in order to see results.
2. Secure executive support
   Strykers first sign of support came from Global Operations Vice President John Haller whose encouragement and backing was clearly visible from the start. This not only illustrated that their company promises were being followed through, it also reassured employees that the initiative was worth their time and participation.
3. Don’t Survey unless you plan to follow up
   The common phrase ‘There’s no point as nothing will ever be done about it’ is now starting to change as Gallup reveals that there is nothing more damaging to staff morale than asking employees their opinion and then not following it up.
4. Engagement is the responsibility of managers and employees alike
   It doesn’t always work top down in organisations and with a lot of constructive opinions and ideas coming from the shop floor, responsibility should be shared across the entire company in trying to increase engagement levels.
5. Engagement doesn’t come naturally to everyone
   Changing the way you motivate staff is forever evolving and managers need to be trained in order to engage and reach all levels of their workforce.
6. Find local champions
   Sometimes the best advocates to boost engagement participation are the ones which encounter the everyday issues on the work floor like receptionists or the sales team.
7. Choose ambassadors to bring good ideas forward
   Ambassadors differ from champions as there is an increased sense of formality as they need to carry messages up through the chain. They are respected and passionate roles who are highly valued within any organisation.

Supporting Strykers’ lucky 7, famous psychologist Will Schutz identified 3 basic needs people have when trying to have successful interpersonal relationships which can all be applied to Strykers current guidelines:

1. Need for change
   With a constantly evolving workforce it is now essential to ensure that engagement processes are revised annually in order to embrace new methods of motivation especially in financially turbulent times.
2. Need for control
   Once the structure and guidelines are correct you are able to build upon the foundations for successful recognition.
3. Need for openness
   So many organisations fall into the trap of keeping things behind closed doors, it is essential to educate and communicate with staff to drive behavioral change and performance.

Now is the perfect opportunity to review your plans for 2012 employee engagement. Taking that step back to regain focus on what are your companies aims and objectives, is vital. Just like Stryker these principles may help you inject that passion back into your workforce for the year ahead!

A recent article in the Telegraph titled ‘Work fear sweeps nation as Britons dream of changing careers’ has not only spurred employers on to make a change this year but it also illustrates just how hard the nation is working amid such financial turmoil. More than two thirds of people put down a work related New Year’s resolution for 2012 and 57% of workers want to make a career out of their hobby. The extent to which people have become consumed by their work trials and tribulations has increased over the past 12 months with one in three employees admitting to regularly checking work e-mails during their spare time, 40% of workers not taking a lunch break and one in four admitted to pulling a sickie. If this is not enough to make you incorporate employee motivation and engagement into your New Year’s resolution,  then it was also revealed that lack of motivation came out as the top reason for workers pulling ‘sickies’. Participants confessed that they would take less time off if they felt more valued and relied upon by their fellow colleagues.

The winter months usually associate the office with dark days, coughs, colds and stress and with absenteeism rates soaring compared to any other time of the year it is no wonder that 78% of companies have implemented specific winter absence policies. 35% of companies have even gone as far as to encourage staff to have flu jabs as well as implementing healthy eating and fitness regimes to kick start the New Year. Incorporating fitness and wellbeing benefits into the workplace helps brush away the cob webs, boost staff morale and keeps employees positive after the post Christmas anticlimax.

The telegraph highlighted the importance of pursuing a career than not only motivates and inspires you but is also enjoyable. Providing staff with stimulating challenges helps to introduce a sense of urgency, bringing the pace of the office back up to speed.

Research by Richard Wiseman revealed that a staggering 78% of people fail to keep their New Year’s resolution due to a lack of willpower and the fact that they were unrealistic in the first place. Make sure your New Year’s resolution doesn’t go in one year and out the other, invest in effective ways to keep your employee’s feeling valued, respected, engaged and ready to face the challenges of 2012.

12 Reloadable Gift Cards

A recent survey from across the pond revealed that 80% of people will buy a gift card this season and employee’s value small tokens of appreciation - 64% of respondents said a £50 or less gift card would meet their expectations.  Both companies and employees have survived yet another year of financial turmoil and 31% of staff stated that they would use their gift cards for their day to day expenses, making them more than a festive gift, they can also be a helping hand!

11 Christmas Baubles!

On average the UK employee spends 8-10 hours a day in an office setting, which is why it is important to ‘Deck the Halls’ this Christmas. Encouraging staff to decorate the office with festive trinkets not only boosts staff morale for the lead up to the big day but it creates a positive, friendly and fun atmosphere for staff to work in. Introduce small prizes for the most festive desks and keep your staff’s Christmas spirit at a high this December.

10 Gift Vouchers

The UK gift card and voucher solution market is worth approximately £4billion with sales to employers making up 45% of the overall, and motivation vouchers accounting for two-thirds of that figure. The value of tangible rewards is still standing strong as The Voucher Shops 2011 survey revealed that 45% of employers still prefer paper vouchers over plastic.

9 Christmas Cards

9 out of 10 organisations believe that it is important to recognise and reward the contribution staff make to businesses at the end of the year. This doesn’t always have to be a giant Christmas hamper or a decadent bottle of champagne, a simple Christmas card can make your staff feel valued and appreciated. Over half of UK companies are set to send their staff Christmas cards this year and 20% are going to send a combination of physical and digital cards.

8 hours of flexible working!

The OECD 2011 study revealed that the UK average working day is 7.8hours, making our global position no 6 behind Mexico and the US however, in front of France and Germany. With monetary cuts taking place left right and centre the hours spent at work are extremely valuable. Over 75% of employers believe remote workers are more productive and with flexible working laws set to change by 2013 make your new year’s resolution ‘to be more flexible!’

7 days of praising!

Keeping your staff engaged, inspired and happy can mean a 12% increase in productivity. Businesses should use their 7 days a week to ensure that both employee and employer are happy with their working role. A great way to keep staff motivation levels at a high over the weekend is to praise employees on Friday. Ensuring that they return on a Monday morning feeling encouraged, refreshed and ready to work!

6-ty years on the throne

Following on from the feel good factor from this year’s Royal Wedding, the Queens Diamond Jubilee has provided the UK population yet another bank holiday to mark the occasion on Tuesday 5th June. The jubilee weekend as it is now known is urging employers to allow staff more flexibility at that period, build upon the patriotism and encourage staff engagement by incorporating Royal themed events, office parties and competitions.

5 Olympic Rings!

With less than 228 days to go and a predicted 4 billion viewers the London 2012 Olympics is a great opportunity to get staff engaged and motivated. Despite the Olympic hype businesses are yet to establish official Olympic leave policies and with 15% of employees prepared to take annual leave during the event companies should start to integrate the games into their 2012 business plans.

4 Prepaid cards

Prepaid cards are increasingly becoming a popular alternative to vouchers and gift cards. The UKGVCA recorded that prepaid cards have experienced it’s highest ever year on year increase in sales, companies are now recognising that prepaid products are definitely on the cards for 2012!

3 Engaged employees

A 2011 survey revealed that only 3 in 10 workers are engaged in their current job role. This illustrates the need for employers to invest in effective motivation, reward and recognition schemes.

2 Mega events

The prime minister announced that the UK will be making the most of its year of celebrations and opportunities to get the UK back on track. The recent announcement of the Global Investors Conference, which is to be held on the eve of the Games, is set to generate over £1billion worth of business. The expected increase of 4million visitors over the next four years means that businesses need to stay positive, motivated and ready for the UK’s lasting legacy.

And an end of year staff Christmas Party!

Sage UK’s 2011 survey revealed that over half of UK businesses are not having a Christmas party this year despite their widespread benefits of maintaining employee loyalty. The opportunity to boost staff motivation in order to return in the New Year energised and engaged is invaluable. Cancelling your Christmas party can instantly blow staff morale, something which can take months to build back up. Ensure your companies partridge is still sitting in its tree come January 2012 and make time to celebrate the end of year success!

Sophia Tirelli

Recent research from American Express (Amex) revealed that an increasing number of people are changing the way they spend this Christmas, with 1 in 4 now participating in a secret Santa system both with work colleagues and with friends. Employers are recognising the importance of their festive generosity and are spending their pennies more wisely, in order to ensure their gifts are used to motivate, incentivise, reward and most importantly be valued by their workforce.

Amex revealed that 68% of people are requesting specific chosen gifts this Christmas and 38% are determined to receive exactly what they requested. The average spend on Christmas presents per person is to reach £364 this year in comparison to the £307 back in 2009. Julie Hay Head of Credit Cards at Amex stated that “People are taking a more savvy approach to buying presents this year”. With this in mind companies alike are starting to invest in schemes which not only reward staff for their hard work at the end of the year but also present them with practical, beneficial support both at work and at home.

Incorporating pre-paid cards as part of any incentive and reward scheme is one way in which employers are able to ensure that their rewards are being valued and used to keep staff motivated and engaged. Business leaders who invest in prepaid products (such as our own Spree-flex card) allow their employees to reap the benefits of a range of savings on their shopping. Pre-paid cards are becoming the no 1 incentive gift on most employees’ wish lists. 

“Prepaid cards are increasingly becoming the preferred choice for a wide range of different industries, particularly as part of a sales incentive”. Promotional Marketing Magazine

From an employee perspective they provide quicker payments, without the need for a bank account, offer excellent added value for the cardholder and can be used across multiple outlets. Prepaid cards have increased in market share due to a higher demand for faster and more convenient payment methods.

2012 will see Business Leaders think more strategically when choosing their staff incentives and rewards. Investing in motivation and recognition schemes whilst still in the midst of a recession means that products such as prepaid cards (which have a proven long term value and return on investment) are now being recognised by companies as ‘the way forward’.

Sophia Tirelli

Gone are the days of the early 2000’s when the motto of ‘If you are going to do it, do it well’ rang through the ears of Senior Managers. The lavish hampers, decadent bottles of bubbly and sizeable bonuses which so many became accustomed to are all a thing of the past. Fresh Business thinking stated that ‘you are lucky if your Christmas party is still standing’ as 48% of small to medium sized businesses are not planning a 2011 Christmas party and 91 % have admitted to spending the same or less than last year.

Despite these bah-humbug revelations companies are realising the importance of maintaining the Christmas spirit. Over 63% of Senior Managers admit that cutting back or cancelling Christmas parties can damage staff morale. Whether it is a gift voucher or Christmas cracker, employers still want to show their staff they care at Christmas. The holiday hype that engulfs most offices in December cannot be ignored. Senior Managers should embrace the opportunity to increase staff motivation during the festive period and leave employees feeling reassured, valued and energised for the New Year. The pied piper of stationary Staples recently released their 2011 Christmas report, confirming the positive impact gift giving can have on productivity and staff morale. According to Staples 75% of employees who receive Christmas gifts said that it increases staff morale, 60% admitted that it made them like their company more and 33% said that they help to increase productivity.

Seasonal goodwill does not have to stop with employees, the Staples survey illustrated that one in three people who receive a Christmas gift from a business partner made them more likely to do business with that company in the future. The release of HR Magazine’s Guide to Christmas Perks 2011 also highlighted that despite companies having to tighten their belt in other areas employers are still investing in Christmas rewards, which help show appreciation of staff’s hard work and loyalty. It additionally states that motivating staff in the run up to Christmas is an effective way to meet end of year targets.

Alongside their survey, Staples also recommended some tips for employers who are considering Christmas rewards…

Keep it personal

You wouldn’t send a Christmas card without signing it, so make sure your gifts/vouchers have a personal touch. Incorporating company logos help to gain mindshare and visibility as 60% of participants stated that they kept their Christmas gifts for more than six months.

The way to your staff’s heart is food

Santa isn’t the only one who craves a good old’ minced pie, 70% of respondents put food and drink hampers at number one of their Christmas wish lists. Vouchers for restaurants and leisure outlets are a great way to give employee’s what they want as well as having the element of choice.

‘Does not include batteries’

The four words dreaded by most parents on Christmas day as it normally means a trip to a petrol station in order for the latest gadget to function however, it still doesn’t deter the 60% of participants who voted Electronics as number two on their wish lists. The launch of iPads, tablets and Kindles have meant that employees have a wide variety of electronic options to choose from in order to please their techno savvy workforce.

Winter Warmers

Gloves, hats, scarves and fleeces receive 20% of the vote leaving general apparel at no three on the Christmas wish list. With UK winters becoming a regular snow scene it would be worth supplying employees with practical tokens that help staff keep cosy this Christmas.

So with just over a month to go till the big day it is not too late to fill your staff’s stockings. Spice up the festive season and ensure your staff return in the New Year feeling motivated and rewarded.

Sophia Tirelli

A recent study involving 500 Senior Managers conducted by Interactive Intelligence  revealed that almost half (48%) of Senior Managers failed to recognise how comments on social media can increasingly define public perception of their company/brand. This not only highlights the vast disconnection Managers have with the latest generation of communication channels, but it also illustrates the lack of awareness Senior Managers have of the overall power social media has on the population. The survey continued to reveal that a mere 13% regard speaking to customers and prospective clients through online communities as ‘high priority’.

Incentive Magazine recently revealed the extent to which logging in and checking our notifications has become part of our daily routine. In the past year twitter has had a 250% increase in tweets per day reaching a whopping 95 million, the amount of linkedin users has increased by 100% reaching 100 million and Facebook’s rise in logins has reached 250 million per day!

The magazine revealed some refreshing ideas that could bring your companies reward and recognition schemes up to date. Instead of having ‘Employee of the Month’ they have suggested having ‘Employee of the Moment‘. Replace the framed employee of the month photo on the wall and why not upload the photo onto Facebook, tweet it, post it and like it. “It fosters a culture of everyday feedback that drives recognition of rhythm”. Their suggestions embrace the social shift, keeping company reward and recognition structures innovative and up to date. “If you can’t beat em, join em!”.

Despite the numerous social shockers a previous You Gov and Interactive Intelligence survey revealed that 41% of consumers in 2011 are influenced by both positive and negative comments about a company or brand on social media sites, and 89% of people look online before they make a purchase decision. Despite these statistics only 6% of Senior Managers felt that comments on social media sites were very influential.

Many Senior Managers view social media as an unstoppable force and fail to see the potential positive impact it can have on business, however Senior Managers are starting to realise and rectify their ways in order to integrate social media within their company’s strategy. A recent HR Review article revealed that over 41% of companies globally agree that the benefits of social media outweigh the drawbacks and 1 in 4 companies are planning to invest more in social media in 2011. Interactive Intelligence additionally reveals that 70% of Senior Managers surveyed are planning a strategy to monitor and respond to social media comments. So this begs the question, does your company make the most of its social media offering? The new generation of communication is here, whether you like it or not, so why not incorporate social media into your reward programme!

Sophia Tirelli

Maitland states that “Long hours are often required and rewarded without any measure of the productivity involved” this is supported by the fact that 90% of  those surveyed felt that people would be more productive if given autonomy over their working patterns. Recent studies demonstrate the numerous benefits of flexible working and hot desking including a fall in absenteeism, employee turnover and savings on property costs.

Two of the case studies cited in the revolutionary book include search engine mogul Google and clothing retailer Gap. These two global companies have adopted the ROWE system (Results-Only Work Environment) whose key principles include ‘every meeting is optional’ and ‘there is no judgement about how you spend your time’. Google’s engineers have benefitted from the ROWE introduction as Matt Brittin CEO of Google UK and Ireland stated that “Our engineers can work whatever hours they like assuming that they co-ordinate with colleagues and deliver what’s agreed”. Since Gaps introduction of the ROWE system they have halved the turnover rate of employees. Gap’s Senior Vice President of HR and Communications Eric Severson revealed that by changing their working culture they have given their company a three year competitive advantage.

The news of the work revolution has even reached the doors of the White House, with President Obama calling for federal workers to be judged by the results they get not by how many meetings they attend or the amount of facetime they log. Obama has targeted an $8bn saving by 2012 from reducing the use of office space. This is supported by a US Microsoft survey revealing that 71% of employees felt they were most productive when away from the office.

Following on from Google and Gap’s successful examples of implementing a Results-Only Work Culture, Vodafone UK have additionally identified the need to reduce office space and increase flexible working by having no private offices, no personal desks and virtually no paper. Not even the CEO is allowed more than one filling cabinet drawer of storage. Vodafone UK Chief Executive Guy Lawrence highlights the company’s benefits “It used to take us 90 days to change a price plan, now we do it in four days!”

A study of 24,000 IBM staff worldwide additionally found that those with flexible working could work an extra 19 hours a week before hitting the same level of stress and health issues than those at the office. Despite the clear benefits of adopting ROWE systems and flexible working, Future Work’s survey of 366 international managers still reveals that over 70% of managers continue to adopt a traditional approach versus the future work approach, however, 70% admit that the future work approach would be more effective. 

Maitland concludes that “It takes bold leadership to break with old habits, but today’s workforce wants a new deal and it makes business sense to do it!” So with Christmas soon approaching Maitland and Thomson’s Future Work book may prove to be a beneficial Christmas read. Will your business rethink its current presenteeism culture and make flexible working and ROWE systems part of its New Year’s Resolution?!

Sophia Tirelli

New research finds huge discrepancies between public and private sector recognition of employees for their length of service.

According to research that our voucher division (The Voucher Shop) has recently undertaken, there are significant differences not only in the length of service that is rewarded, but also wide variations in the values of rewards between, and also within, the two sectors.

Our research found that a private sector organisation is much more likely to start rewarding staff relatively early on in their career, with one leading high street retailer, for instance, rewarding staff after just three years of employment.  In contrast, the public sector begins to provide rewards after 10 years of service at the earliest and in some cases is not recognising employee loyalty until 20 years have passed.

However, it is a reflection of how long employees now stay with an employer that, while most private sector organisations no longer specify rewards for more than 20 years of service, several councils have scales recognising 25, 30, 35 and 40 year milestones.

Will this change? Will the public sector, in order to boost morale, performance and engagement in the difficult times ahead, take a lead from the private sector and start recognising employees earlier or at more frequent intervals? Whatever the answer, I expect there will be significant changes in the near future.

It is also interesting to observe that the values of rewards vary significantly amongst the organisations surveyed. Looking at rewards for 20 years of service, which the majority of public and private sector organisations recognise, the public sector in some instances set the value of a reward at £200 while a leading high street retailer offers reward values of £1000.  Similarly one chemical and business supplier provides rewards worth £30 for 10 years of service while, for the same period, a transport company says thank you with rewards of £250 and a high street retailer £500.

Recognising employees, taking the time to thank them and show appreciation for their efforts is a crucial element in encouraging them to stay with an organisation and build up their knowledge and skills so they add even more value to the organisation over time.  Feelings of dissatisfaction will come to the fore and staff turnover may increase if a long service scheme is poorly researched, offers derisory amounts or only starts rewarding after 25 years of service.

In today’s business environment, if an employer wants to encourage loyalty and increase staff retention by offering long service rewards, I believe that rewards have to start relatively early on and be set at a level that clearly says that the organisation values loyalty.

Kuljit Kaur