Building workplace culture the “Lasso Way”
Beyond total rewards: Equip your organization with learning and skills development
10 best practices to create an employee recognition program
How to develop a connected culture to attract and retain talent
Meaningful years of service recognition for a multigenerational workforce
from the desk of
Senior Vice President, Sales & Marketing
My favorite interview question for potential candidates has always been, “In your career, what makes your heart flutter?”. The answers I get aren’t about specific roles or titles; instead, they’re about the opportunities team members are afforded to develop deeper emotional connections with their professional selves. When I ask myself the same question, my answer centers on togetherness. Problem solving, presenting, brainstorming and laughing. And I’m grateful ITA Group gives me the freedom to create a “customer facing” senior executive role that ignites my passion daily. I’m equally grateful today’s forwardthinking employers are doing the same for their teams.
A major shift in today’s leadership approach involves designing roles around team members’ passions. While traditional HCM systems cater to “model employees” with specific “job descriptions” and “competencies” gauged by performance reviews, we’re now developing modern leaders—leaders with the ability to see the whole of their team, not just the sum of its parts. The approach in turn positions individual team members to thrive.
Enlightened organizations are leaning into learning and development (L&D) to fuel modern leader development. They’re moving away from traditional HCM systems and review cycles in favor of more frequent team member check-ins, recognition and communication. And while artificial intelligence (AI) will continue playing a role, it should be leveraged to provide guidance and nudging, while leaders do their part to prioritize genuine care and empathy for the human behind the title.
Read on. We’ve included some of our favorite evolution-of-engagement pieces, and I invite you to join us on this incredible journey of transforming the way we work and, ultimately, live.
02 Building workplace culture the “Lasso Way”
06 Beyond total rewards: Equip your organization with learning and skills development
1 2 10 best practices to create an employee recognition program
20 How to develop a connected culture to attract and retain talent
26 Meaningful years of service recognition for a multigenerational workforce
What can a soccer show teach us about building organizational
As fans of Ted Lasso learned, the titular character’s approach to building a positive team culture has applications far beyond the “pitch.”
By: Tanya Fish, Employee Experience Solution Line Manager
Despite the fact that Lasso was set up to fail as an American football coach handed the head position with a British soccer club, his winning leadership style shines through.
The show goes beyond sports to demonstrate how a diverse team navigates human issues and sensitive topics like mental health, relationships and ambition. While the show's workplace is a soccer club, the situations and lessons about how to build a positive culture are applicable to any organization.
Every workplace has a culture or “way of doing things.” Corporate values are often touted in employee orientations and splashed on posters or office wall murals.
The challenge is activating the behaviors you’d like to exemplify the brand. Fostering positive organizational culture requires leadership and a consistent team effort. Through wins and losses, the cultural beliefs and behaviors of a team hold them together.
The ethos of the “Lasso Way” not only helps the team win but also influences each person to become their best self. Articulated and embodied through Lasso’s optimistic personality, eventually, the “Way” was adopted by everyone who had a stake in the club’s success.
When I watched the show, several elements of the “Lasso Way” jumped out as principles for positive workplace culture.
1. Extend trust to build trust
Walking into any new environment or group, it’s important to recognize your weaknesses and the strengths of those around you. Lasso showed trust in his colleagues and players, which helped them trust him—and themselves.
2. Acknowledge and appreciate others
Lasso found small ways to make people feel seen. “I appreciate you” was a Lasso catchphrase that highlighted the contributions someone made— whether in a game, practice or in his life outside the stadium.
3. Embrace differences and diversity
The storyline featured players from eleven different countries, LGBTQ+ main characters and women as executives. Everyone embraced each person as their unique self and recognized their strengths. Together, the team was stronger because of their differences.
4. Reinforce behaviors with visual cues
The handwritten “believe” sign was a cultural symbol of the locker room. It was a tangible reminder of a key leadership moment the team took to heart. It proved that Lasso built a team based on trust and belief in one another.
5. Identify the potential in others
Lasso built his coaching staff by nurturing and promoting people based on what he felt was possible for them, not necessarily the position they held. That open-minded leadership model allowed him to personally connect with each team member.
6. Demonstrate vulnerability
Lasso openly grappled with anxiety. As work on emotional intelligence and mental health emerged as a central theme, even the angriest and most boastful characters evolved into sensitive and supportive types. (I found myself cheering more loudly in these empathetic scenes than when the team scored!)
7. Embrace failure as a growth/learning opportunity
Lasso told players, “Be a goldfish.” Forgetting the past and staying present helped shake off self-doubt. Lasso triumphed in the moments where the team played well together and overcame adversity.
8. Success doesn’t rest on a star’s shoulders
The team’s lasting power didn’t come from a single talent. When members fully embraced the culture of everyone having the opportunity to shine, they found sustainable success.
The handwritten “Believe” sign from Ted Lasso was an environmental symbol of the team culture.
Every organization should promote a “Way” that is clearly articulated, coached and channeled into everyday behaviors. Leaders must model desired behaviors each day while recognizing that they can’t improve their culture alone.
We work with organizations to develop strategies that motivate teams and improve workplace cultures. Organizations that have a well-established “Way” embrace a system for ongoing training and reinforcement of behaviors that align with the established culture.
Once adopted, behaviors become recognized externally, so it’s easier for prospective talent and customers to know what to expect when they interact with team members from your brand.
> Is there a communication plan for keeping organizational values top of mind?
> Do leaders understand the “why” behind the organization’s “Way,” and how to activate the associated behaviors?
> Are all new team members consistently taught about the culture?
> How can cultural ambassadors provide continuity of leadership?
> What policies are in place to reinforce workplace culture?
Looking for more advice on building a winning workplace culture? Focus on can’t–miss elements for a standout recognition culture.
info.itagroup.com/can't-miss-elements
Although I don’t have Lasso’s knack for corny rhymes or nicknames, my years as a strategic workplace-engagement leader have shown me what it takes to build a positive culture. To ensure success of your organization’s “Way,” it’s important to consider policies, practices, communications, environmental and systemic opportunities for sustaining and reinforcing it.
Improve retention and engagement by enhancing the employee experience
Organizations focused on the employee experience see impressive results in retention, revenue and profitability. So what does it look like, and how can you do it, too?
info.itagroup.com/retain-engage
By: Tim Schieffer, Employee Experience Insights and Strategy Leader
Human resources challenges, like labor shortages, inflation and workforce disengagement, demand HR leaders to answer critical business questions.
How can our organization improve employee retention?
How can we deepen employee engagement and foster cultural connection across a dispersed workforce?
How can we address the skills gap and contend with labor shortages?
How can our business offer competitive pay without busting budgets?
Tackling any one of these issues requires a strong leadership commitment and enterprise-level solution. And yet, our current business environment requires addressing multiple challenges simultaneously:
> Competition for talent is fierce with low unemployment rates.
> Recruitment costs are rising. SHRM research shows 45% of organizations are increasing their compensation budget specific to talent acquisition.
> Inflation is creating expectations for higher compensation.
> Employee disengagement is a real problem, with 7 out of 10 employees actively disengaged or neither engaged nor disengaged.
Leaders looking for a universal remedy to fix workforce issues are feeling frustrated. Although there is no magic solution, building comprehensive employee engagement programs can help HR managers adapt to evolving business needs.
Simply increasing salaries isn’t leading to stronger results.
Investing in learning and development programs equips organizations to help employees grow and thrive within their organizations.
Employees have made it clear that they select and stay at companies that align with their values, which includes supporting their growth and development.
Continue reading to explore how focused and effective learning and development (L&D) programs can strengthen your organization to meet three significant issues (labor shortages and skills gaps, competitive total rewards, and a connected culture) head-on.
To address labor shortages, organizations must focus on upskilling their current workforce and strategically hiring to fill future needs.
Identify skills gaps by conducting a comprehensive workforce analysis. Surveys, assessments, performance evaluations and manager feedback illuminate what’s currently missing and what development is needed to remain competitive.
By finding areas where employees lack the necessary skills to support the future of the business, you can proactively set up training and career paths.
Tip: Make sure employees know how they benefit. Estimates suggest that by 2030, nearly 20% of the workforce will be significantly under-skilled for their careers. As a result, many could find themselves less satisfied with their employment, or even out of work altogether.
Organizations must develop a culture of continuous learning. Encourage employees to embrace personal and professional development by providing them with resources, support and opportunities for growth.
Employees want to learn. 74% of workers are willing to learn new skills or retrain to remain employable.
—WHARTON
1
Design career paths around experiences, not positions
By shifting the focus from individual job responsibilities to collaborative projects, employees can become fluent in a wide range of business areas. Invest in internal talent mobility by training leaders to embrace a coaching vs. managing mindset. When leaders understand the importance of being “talent agents” for their people, they enable career growth on all levels of the organization— not just for high performers.
2
Provide job-rotation opportunities to avoid talent silos
Encourage employees to gain exposure to different roles and departments.
Cross-functional training helps employees develop a broader skill set, experience a variety of leadership styles and take on more diverse responsibilities during, say, a hiring freeze. Implementing knowledgesharing and mentorship programs empowers emerging leaders to solve departmentspanning problems.
3
Build a feedback loop rather than top-down communication structure
Communication begins with listening. Establish mechanisms to gather feedback from employees and leaders about HR services and initiatives, then act on it.
Robust compensation may attract employees to your organization, but offering a strong salary is rarely enough to sustain satisfaction.
A competitive total rewards package that engages and retains employees needs to include learning awards and recognition, as well as development opportunities.
Support of upskilling and reskilling of current team members taps into internal motivational drivers. Strong L&D programs prove the organization believes in their existing talent.
Continuous learning opportunities also address growing anxiety many workers feel about increased automation.
SHRM research indicates more than half (52%) of workers said they need to learn new skills within the next year to continue their careers; 46% said they are not as skilled as they need to be.
To foster a culture of learning and development, organizations should proactively address concerns about cost and convenience to access training.
> Provide financial assistance for external training opportunities such as certifications, advanced degrees and professional conferences
> Bring new training experiences in-house and on-demand
> Offer time off for training
> Recruit from within
– Offer promotions to people engaging in career pathing through merit and competence-based incentives
– Support the pursuit of internal job postings to encourage employees to acquire new skills
Remember, all these efforts must be measured and evaluated for effectiveness. Regular assessment of L&D initiatives will help ensure they produce desired outcomes.
Engaged employees are 44% more likely to stay with the organization and contribute to its success than their disengaged peers.
— ZIPPIA
To be considered a “great place to work,” employers must show alignment between company values and employees’ day-to-day experiences. Moreover, organizations can help their teams stay connected to their work and overall mission by prioritizing employee well-being, creating a sense of psychological safety and providing financial stability.
Creating a consistently positive workplace culture starts at the top. Develop leadership alignment around organizational values, communications and what kind of behavior is rewarded.
Trainings that help executives strategically implement the elements of a connected culture provide an important foundation for attracting and retaining top talent. Here’s why: If you have a solid employer brand, candidates will seek you out.
Establish a framework for extending training so all employees understand how to show organizational values. Consider offering a special certification that celebrates training completion, emphasizes the importance of a connected culture and recognizes employees’ commitment.
Whether your organization is implementing L&D initiatives or updating outdated programs, working with a consultive partner can help.
For example, ITA Group partners with HR managers to design, implement and evaluate L&D programs that align with their organization's priorities to create a positive, engaging and productive workplace for employees.
Clients experience significant employee attraction and retention improvements by using a research-based approach that speaks to employees’ needs, aligns with organizational goals, and enhances employee motivation, satisfaction and productivity.
Although HR managers can’t control external challenges impacting today’s labor market, you can guide your organization with a comprehensive employee engagement strategy. Leverage learning and development as a lighthouse, illuminating opportunities to close knowledge gaps, build leadership pipeline and motivate employees.
More than 50% of consumers are willing to pay more for a better customer experience, according to Forbes. The key to exceptional customer service? Front-line workers. Download our white paper with NKD, our wholly owned subsidiary, to future-proof your employee and customer experiences, as well as your business.
info.itagroup.com/lifeline-white-paper
By: Angela Fink, Employee Experience Strategy Advisor
In the world of HR and employee engagement, the question of how to implement an employee recognition program is top of mind for many leaders.
The question isn’t a surprise because right now is a challenging time for employee engagement. You can hardly go a day without seeing a new article about The Great Resignation and how it’s affecting hiring and the morale of employees left behind. According to Gallup, employee engagement in the U.S. is trending in the wrong direction—down 2% in the last year.
And yet, there’s reason to be hopeful. I choose to see the glass as half full because every challenge is an opportunity to reflect on what’s working (or not working) and make positive changes within our organizations.
What should you do to turn things around and increase employee engagement again? If you don’t have an employee recognition program in place, or if your existing one is on autopilot, start there.
It’s well worth the effort too—one of our clients found employee engagement grew rapidly with the execution of a new recognition program, to the point where 70% of employees received recognition in the program’s first year alone.
Creating an enterprise-wide recognition program might seem overwhelming at first, but it doesn’t have to be. Take it one step at a time. There’s a lot that goes into launching (or relaunching) a program, so get the ball rolling with our expert tips.
As you read through on the following pages, envision how you can apply each to your specific team to maximize your ROI.
The most effective recognition programs reflect your business goals and core values. If you’ve had the same set of core values in place for several years, it may be time to get a pulse check from your employees. Are the values still resonating? Are they reflective of your brand?
Take a fresh look at the established goals and values within your organization to identify the specific employee behaviors necessary to drive organizational health. For example, safety is essential for manufacturing and retail organizations, so identifying key behaviors tied to safety will ensure employees feel secure and improve overall productivity.
If your established goals aren’t reflecting current brand messaging, change up the goals. We can help align your brand and your values if you find they need a stronger connection.
Your core values and business goals are your North Star when designing and executing the recognition program. Remember, recognition can take many forms to best align with your values.
A lack of defined values was causing this company to experience a disconnect with employees. Discover how we helped them define core values to build a strong organizational culture.
info.itagroup.com/fresh-corporate-values
Imagine the average work day for one of your sales reps—what emails await them when they start their day, who are they talking to, what meetings and projects are they on, what causes them stress, what would be a surprise that makes their day, how do they feel when they leave at the end of the day, etc.
Investigate what matters to the daily work life each role in your organization. Nowadays people expect personalization within every part of their lives, including their employee experience. When, why and how each role earns recognition and rewards is part of that personalization.
As a program owner, you can use segmentation to target your employees by role. Through persona development, you’ll uncover what it’s like to walk a day in your employee’s shoes. Define a profile for each specific employee segment and their work experience (i.e., function, location, motivation and pain points) and use it to design, communicate and execute a more effective recognition program.
Make the most out of company-wide events you were already planning. Time recognition program roll outs to coordinate with events like a quarterly town hall or annual company meeting that naturally build awareness and excitement.
Or launch the program during an appropriate time of the calendar year, such as Employee Appreciation Day (March 3) or National Gratitude Month (November). Employee Appreciation Day is the biggest recognition day for some of our largest clients.
Don’t forget to account for your company’s busy season though. For example, we’d never recommend a retail client launch something new during the hectic holiday shopping season.
Early buy-in is key to operating a successful program. Running a limited-time promotion during the launch can get employees engaged.
A limited-time promotion could take the form of employees earning points for sending a recognition, adding an award to their wish list or answering a pulse survey within the first 60 days. Or it could reward employees who issue at least five recognitions in the first 30 days.
Special promotions encourage employees to visit the platform, get familiar with the program and start building habits of recognition. It also grows their point balance, which provides motivation because employees can see their progress toward redeeming a relevant award.
Dive deeper into how personalization increases meaning, relevancy and equity within a recognition program.
info.itagroup.com/esg-white-paper
The average attention span of a human being is 8 seconds—less than most YouTube ads. When vying for someone’s attention, you must craft impactful messaging and repeat it through different mediums or it will get lost in the noise.
Your communications must be credible, too. Ask your CEO and other key leaders to record a brief video message about how important recognition and your core values are to them and the company. Their authority will make employees take notice.
Data shows leaders set the tone for employee engagement. It’s important to tell managers your expectations for adopting and using the program. Managers should dedicate time each week (or at least each month) to recognize their teams in a meaningful way. You may want to go so far as to set specific goals for people managers.
For example, make sure people managers recognize new hires within their first 30 days of employment. Why? Because it has a direct impact on retention and thus your bottom line.
While manager engagement is crucial to the successful launch of an employee recognition program, most managers are busy with daily tasks. Take some of the burden off by identifying culture influencers (at all organizational levels) and creating program ambassadors.
Train and empower ambassadors to lead by example—promoting the program among peers and gathering feedback to fuel program optimization. If executed well, the group should feel privileged (and recognized) just for being asked to be a culture champion, and they’ll be motivated to generate excitement for the program.
One of our clients, a global retailer who asked for help designing a recognition program, found new employees who received recognition in their first 30 days were 15% more likely to be retained at the 3-month mark. Read the full story here:
info.itagroup.com/global-recognition-platform
Too often HR and employee engagement specialists assume employees understand why recognition is valuable, what behaviors deserve recognition and how to send an impactful recognition. But it isn’t always second nature for employees. Remember to educate participants when you launch a recognition program.
Use storytelling to illustrate the highlights of the program. These stories don’t have to be complicated—a story could be as simple as an emailed example of when a recognition might be appropriate (and what it would look like). You could even provide sample wording to showcase what meaningful recognition looks like.
Taking our earlier example of the sales rep, tell a story about how this rep received a phone call from a grumpy client and voluntarily stayed late to fix the problem, leaving the customer ecstatic. A coworker then used the recognition platform to congratulate that worker for great problem solving and customer service.
Stories are an effective and memorable way to call attention to key behaviors tied to each core value.
Picture this: You finally get formal approval to implement an employee engagement program after presenting your business case for the last year. You’re thrilled! Immediately you jump into planning mode. You want to include it all: recognition, years of service awards, an annual nomination program and more.
But how can you clearly explain/communicate all those topics to employees without confusing them? How do you manage so many components launching at the same time?
Try a phased rollout to start the recognition program small and scale it so components reach employees throughout their entire journey with the company. The phased rollout prevents information overload during the launch period and gives employees something novel to be excited about each time you implement a new feature.
Historically, employee engagement programs have been difficult to measure, but those days are gone.
Carve out time to think about how you’ll define program success 60, 120 and 365 days after launch.
Ask the following questions:
> What targets should you set for each of your key performance indicators?
> How do you want to segment the data?
> How will you support leaders throughout the organization with actionable insights based on results?
After success measures are in place, don’t just set goals and cross your fingers it all works out. Be prepared to optimize or shift strategies based on the collected data. Having the right strategic partner on your side will make shifting strategies easier (and more effective).
These best practices will put you well on your way to starting a recognition program that aligns with your organizational values and creates a thriving culture of recognition which attracts and retains the best employees. Want to learn more about how to prove ROI for employee recognition programs? Read about how four clients used analytics to improve their programs—including one who saved $11.5M in turnover costs.
info.itagroup.com/examples-prove-roi-recognition
By: Tim Schieffer, Employee Experience Insights and Strategy Leader
The employee experience is broad, capturing the journey from job seeker to new hire to tenured employee. Given the employee journey’s ability to transcend a set timeframe, industry or employee demographic, it’s up to organizational leaders to make the journey feel driven by corporate goals and tailored to team members.
Organizations can elevate their current employee experience programs by leaning into a connected culture approach. With a connected culture, interactions between the company, executives, team and team members become more purposeful— and more likely to thrive.
A connected culture is a need-to-have for organizations that want to attract and retain talent. At a glance, here’s what you need to know.
What connected culture is
A corporate-wide approach that focuses on organizational alignment, a well-established culture, an appealing employer brand and strong leadership development.
it matters
Effective development and implementation of a truly connected culture keeps good team members and attracts new ones while also improving organizational outcomes.
it impacts employees
Connection helps employees feel valued and appreciated, spurring them to become brand advocates. Individuals who feel connected with their employer care more deeply about the work they’re doing and are more successful in achieving the outcomes that matter to them and the organization. To maximize the value of a connected culture, organizations need to:
> Ensure leadership alignment, consistency and support
> Evolve and sustain employee experience efforts
> Put connected culture programs into a reinforcement cycle
Want to achieve a truly connected culture?
Executive team alignment is critical. While it may sound obvious, if it were that simple, many organizations would already be operating with high employee engagement levels, maximum efficiency and desired profitability.
To create C-suite level alignment, your executive team must have powerful, authentic, robust and transparent conversations, like discussing:
> Trajectory of influential organization decisions
> Past misalignment that impacted communication or implementation of executive goals, and how it affected the organization, results and, potentially, customers
> How the team should (and will) work better together to communicate and remain aligned moving forward
There’s no one right way for executive teams to stay aligned. Here are a few ideas:
> Dedicated off-site strategic planning session
> Retreat-style get-together focused on team building and breaking down barriers
> Give-back group opportunity to support an altruistic effort of serving the greater good
> Tailored experiential learning session focused on team dynamics and discovering insights
The bottom line: Executive teams need to reflect on what strategy is right for their organization and what is going to truly foster alignment.
While most executive teams recognize the impact of change as it affects their area of business or discipline, the influence of a corporate-wide culture change is often less embraced—leaving better performance and increased profits on the table.
Organizations can’t realize the full potential of business transformation, or new ways of working, without supporting cultural change— seen in practice as organizational behaviors and norms.
A study by Boston Consulting Group reports that companies focused on culture and providing proper cultural support were five times more likely to achieve breakthrough results in their transformation initiatives than those that didn’t.
Want to be one of those companies?
Recognize that culture change only happens with dedication. It’s challenging enough to change one’s own habits, let alone thousands of employees’.
Once the executive team is aligned and has defined the desired culture state, there are some best practices to keep in mind as the culture changes are put into action:
> Ensure executives are the face and voice of culture change
> Involve critical stakeholders early and have them understand why change is necessary
> Engage team members and gather feedback
> Build and communicate the culture road map
> Reinforce and reward desired culture shifts within the organization
The employer brand is your company’s reputation, and it plays a vital role in retaining team members and attracting new talent. It also impacts the retention and attraction of customers. Each audience that buys into your brand ultimately leads to increasing revenue and reducing expenses. Here are the key players that support a successful employer brand.
Human resources
From finding and hiring talent to engaging employees and maintaining retention, this team is the “face” of employer branding.
As busy as the C-suite might be, they’re critical supporters and faces of culture change and employer branding, even talent acquisition.
This team works hand in hand with HR to uphold employer branding, from crafting and delivering value messaging that resonates with team members to promoting the brand and culture during recruitment efforts.
Recognition matters. To the members of your team—and your company’s bottom line. Learn how to revitalize your employee recognition experience in this white paper.
info.itagroup.com/revitalize-recognition
Brand advocates
As with any cultural transformation, there have to be influential team members who share corporate messaging and endorse the culture. Identify these players to strengthen recruiting messages and improve the company’s reputation and culture to attract more top talent.
Being a part of an organization with a great work culture is uncompromisingly important to today’s job seekers, and companies need to be mindful of how they showcase that culture. If you have a solid employer brand, candidates will seek you out. When done well, strong culture and employer branding reduces recruitment costs and leads to a greater selection of top talent.
Having strong leaders in place is an important part of making a connected culture a reality, and organizations with strong “leadership maturity” are more likely to build better, more successful teams.
Yet according to a Global Leadership Forecast report, only 11% of surveyed organizations report they have a “strong” or “very strong” leadership bench. Zippia research also shows that 77% of businesses report that leadership is lacking.
Organizations need strong leadership development solutions to maximize their investment in their people and culture. Continuing to improve and strengthen their leadership skills is also critical to inspire and motivate your workforce.
How do you do that effectively? To the right is a quick list of leadership development dos and don’ts from the Center for Creative Leadership.
Leadership development dos
> Treat leadership development as a process
> Incorporate best practices, data and personal stories into leadership learnings
> Connect leadership learnings with on-the-job challenges
Leadership development don’ts
> Consider leadership development as a one-and-done event
> Structure leadership learnings through a single approach
> Launch leadership learnings without previous executive buy-in or input
A connected culture needs to be woven into every employee’s work journey to maximize their value and contribution. ITA Group helps employers implement a reinforcement engine to keep momentum with the good culture progress they’ve made.
Culture is a force multiplier for the outcomes that matter most to you and your organization. When your culture is truly connected, and you consistently reinforce the culture, it becomes a powerful differentiator.
By: Jessica Sheets, Employee Experience Senior Strategist
The traditional approach to employee engagement and years of service recognition doesn’t generate the same level of loyalty in our current era of job-hopping and postponed retirements. Generational expectations have changed. Significant shifts in when, where and how people work have inspired employees to re-examine their priorities and seek work/life alignment.
Workplace trends around employee disengagement and resignations set off a frenzy of op-eds highlighting the evolving relationship between employees and employers. And recent U.S. labor statistics point to an even bigger retention issue with today’s fivegeneration workforce: In 2022, about 50.5 million people quit their jobs, up from 47.8 million in 2021, according to Job Openings and Labor Turnover Survey data. Early indicators show this trend remained consistent in 2023 and will continue through 2024.
To reduce turnover, HR leaders must rehumanize the employee experience. Years of service (also known as an employee or service anniversary) recognitions are a tried-and-true employee engagement strategy. Whether an employee is in their first year with your organization or 40 th , their contributions are cause for celebration. But making service awards meaningful requires understanding and matching multigenerational motivations.
engagement
Understanding your employees’ generational values and goals goes a long way toward building an impactful years of service recognition program.
The Silent Generation (b. 1928-45), Baby Boomers (b. 1946-64), Generation-X (b. 1965-80), Millennials (b. 1981-96) and Generation-Z (b. 1997-2013) approach work with unique mindsets and priorities.
But there are many similarities across all age groups, too. Workers similarly weigh factors such as compensation, meaningful work, flexibility, advancement potential, workplace safety and a supportive environment when considering whether to take or leave a job.
Organizational culture is becoming increasingly important, especially among those entering and rising in the workforce. Gen-Z and Millennials report that culture plays a big part in their intent to stay with their employer at nearly 40% for the two groups, compared with 30% of Baby Boomers, according to Forbes.
And with recent recession concerns causing a significant portion of Boomers to delay retirement, younger up-and-comers are feeling frustrated by the lack of advancement potential. When they’re told “not yet” regarding a promotion, they start to look elsewhere.
Despite differences, workers across generations share a universal desire to be recognized. Organizations must appropriately acknowledge and reward their people, or they will lose them.
According to a McKinsey analysis of age-based worker preferences, employers shouldn’t try tailoring the employee value proposition and work experience by generation. “It’s much more worthwhile for organizations to focus and take action on the factors that nearly all employees want…while appreciating the nuances of how they want them based on their stage in life, personal circumstances and individual preferences.”
Years of service programs operating off an old playbook reward milestones at distant intervals. Employees don’t want to wait half a decade for recognition. Gallup calls Millennials “consumers of the workplace,” with most staying in a job for less than three years. We recommend recognizing employees at year one, year three and year five milestones when using years of service as an engagement and retention strategy. Knowing when the service milestone should be recognized is crucial in retaining employees. Our best practice is to recognize early and often. ITA Group clients who have used our approach to issue employees at least one recognition in their first year of employment have on average a 27% higher retention rate than organizations without a formal recognition program.
In addition to timing, the awards should resonate with your employee audience. When employees are highly satisfied with the recognition offered, they’re 31% more likely to believe their employer is committed to keeping them. If recognition falls flat, it could have a negative impact on your efforts.
Younger generations gravitate toward travel and experiences, whereas Gen X and senior generations often prefer status gifts, such as luxury accessories (think: cufflinks, designer handbags, watches). What motivates individuals can vary, so it's best to offer a diverse range of award options employees consider valuable. Remember to continuously collect feedback on their recognition experience. How awards are presented matters, too. Consider the emotional brand connection, and design service awards to be a positive, pro-social experience.
Encouraging managers to recognize employees for their years of service at a company-wide event doesn’t just lean into a celebratory environment. It’s an opportunity for leaders to demonstrate they care. Employees who are recognized by managers are 67% more engaged and 1.3 times more likely to stay loyal to the organization. And their recognition might also inspire others, too. (Tap into Gen Z's affinity for influencers!)
Consistency is key. Having a recognition platform where employees can be recognized not only improves employee engagement, but it also helps leaders keep track of milestones.
Letting a ‘workiversary’ slip by can be harmful to employee morale. Using a recognition platform with a dashboard and other analytic capabilities helps company executives and managers proactively plan years of service recognition. The best platforms also enable peer-to-peer recognition so employees can celebrate each other.
Every generation wants to feel valued. Celebrating contributions at key milestones is an important component of any employee recognition program. Considering generational preferences deepens engagement.
