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Why Tenure-Based Reward Programs Aren't Working

Why Tenure-Based Reward Programs Aren't Working

by Mireille Kilgour

Length of service programs aren't shaping up to be what they used to, believes Accumulate. According to new research, 87% of organisations offer service milestones rather than performance milestones and only 58% of employees even know that a program is in place.

So why aren't they working?

Firstly, they're outdated. Today's generation doesn't care about being rewarded after five or ten years of employment, they want recognition for a job well done.

The chances are that most employees won't make it to these big milestones, with it being standard for someone to have two or more jobs over a five-year period. Research has shown that the number one reason for leaving an employer is lack of appreciation – highlighting the importance of showing appreciation for good performance regardless of time spent within a company.

Currently, the majority of employees report that in a given year they are recognised just once or not at all. It's little wonder that employees don't stick around for long periods of time.

The survey showed that tenure-based programs simply aren't motivating staff. Re-engineered programs can be hugely beneficial for businesses looking to increase employee engagement and loyalty.

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Mireille Kilgour

Mireille Kilgour has been an entrepreneur for 35 years in the hospitality sector. French born, she has been an accomplished business owner and operator for a number of Sydney venues. Leading the industry with high profile institutions such as Lamrock Café Bondi, she has endless passion for the industry, and now has the pleasure of supporting restaurants to fill their tables with the new Good Food Gift Card program.