Hiring new employees is a never-ending cycle. Even if your business isn’t in a stage of growth, there is a natural rotation of staff that is a constant challenge to keep steady. Typically, UK workers change job every five years, with younger employees and those based in London averaging even shorter periods. On top of this, recruitment managers have unforeseen circumstances such as health issues to contend with, and the potential for spikes of unexpected resignations.
Naturally, it is an advantage to keep employees in the company for as long as possible. It makes the recruitment process more manageable, and it also allows the business to spend less on new-starter training and invest more money in developing existing staff. In addition, it heightens the sense of brand loyalty throughout all levels of the business and means you have a highly-skilled team who can take you to the top of your industry.
One of the best strategies for improving employee retention is to recognise and incentivise staff who have been with the company for a significant amount of time. This will keep established employees motivated and will inspire a positive morale in staff who are more green. From helping people to achieve their long-term career goals to giving financial gifts, take a look at the best ways to reward your long-serving employees.
1. Look into possible promotions
A promotion is one of the easiest ways to reward an employee who is showing dedication to their job. A small change in job title and more advanced work will make little difference to the running of the company but is a valuable CV enhancement for your colleague.
2. Diversify their current role
If you are not in a position to offer the employee a promotion, you could simply diversify their current role. This gives them the chance to broaden their skillset and is an effective way to interrupt the monotony that can easily arise in repetitive roles.
3. Give a personalised gift
Are you honouring a particular anniversary? A personalised gift, increasing in value with each anniversary milestone, is always well-received by employees. Gifts can range from a gourmet food basket to a luxury watch from a leading designer depending on the length of service.
4. Grant extra holiday days
Another reward that is a favourite with employees is additional annual leave. The chance for more holidays or a longer leave of absence is a great goal for staff to work towards. You could even offer the chance for a sabbatical, if feasible, for employees who have passed a particular milestone.
5. Increase their annual salary
The most coveted company reward is simply an increased annual salary. Raising this beyond inflation, even slightly, demonstrates a dedication to repaying hard work and commitment. It will give you a reputation as a fair and generous company that highly values staff wellbeing.
6. Start a financial bonus scheme
Another financial incentive that you could consider is to start a bonus scheme. This could be a performance-related quarterly payment, for example, which increases slightly with each year of service. You could also create a profit-sharing plan that allows long-serving staff to directly enjoy the benefits of the success of your business.
HR Future Staff Writer.