Engagement
'Anniversary Programs' Lead to More Recognition, Less Turnover
By Andrea Doyle
March 20, 2013
A recent study commissioned by O.C. Tanner, a global leader in the appreciation and recognition business, reveals that programs that celebrate key service anniversaries for employees are linked to decreased turnover. The cost of replacing an employee can be a significant expense for many companies – ranging from 30 to 400 percent of his annual salary. By contrast, an effective employee service recognition program costs roughly $25 per employee per year.
Celebrate Key Service Anniversaries
Employees who work at a company that has a program to celebrate service anniversaries anticipate staying at their current company 1.9 years longer than employees who work at an organization without such a program.
Employees who rate their key service anniversary recognition program as effective anticipate staying 4.1 years longer than those without a program and 2.2 years longer than employees with an ineffective program.
Employees who previously worked at a company that had a program to celebrate key service anniversaries stayed at their previous company 2 years longer than employees who worked at an organization without such a program.
The correlation between key service anniversary recognition programs and decreased turnover holds true across generations. This correlation is especially strong among employees ages 25 to 44, who anticipate staying 3.9 years longer if their current company has a key service anniversary recognition program.
Organizations that implement an effective key service anniversary recognition program for employees can benefit from significant cost savings, given that turnover and onboarding costs vary from 30 to 50 percent of the annual salary for entry-level employees, 150 percent of the annual salary for middle-level employees, and up to 400 percent of the annual salary for specialized, high-level employees.
“Celebrating key service anniversaries has long been an integral part of the O.C. Tanner approach for increasing employee retention among our clients,” says David Sturt, executive vice president of marketing and business development at O.C. Tanner. “The study found that employees who work at organizations with effective service anniversary recognition programs plan to stay at their current company up to an additional four years — thereby reducing hiring costs, delivering a strong return on investment, and positively impacting workplace culture.”
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