Older employees with many years of working for one employer have looked forward to the recognition for their years of service. They have seen other employees so honored with gifts, trips or parties that include applause and a thank you from a grateful employer. However, that benefit has fallen by the wayside as cost conscious companies try to trim the fat off the bottom line. In recent years companies have shifted their fiscal reporting to a quarter-to-quarter earnings report. If the numbers are not good the first response has been to lay-off employee and cut benefits.

The result of this shortsightedness has resulted in lower productivity, higher turnover and a demoralization of the remaining workforce. Loyalty goes out the window when remaining employees witness dedicated and loyal employees being treated in a disappointing manner.

The companies that continue to honor their retiring employees see positive payoffs. The Container Store has a program that helps employees celebrate their 5, 10, 15 and 20 year anniversaries. At 10 and 20 years the employee, and spouse, are flown to Dallas for a celebration.

Retailing is a high turnover industry and one that has been hit with severe cutbacks. The turnover rate is close to 100 per cent. The Container Store has a turnover that is only 15 to 25 percent. They attribute this low turnover to company's treatment of its employees.

A far different example comes from the airline industry. One large airline handed an employee nothing more than a form letter on a cheap plastic base. An operation technician, who had served 15 years with the company, found his pin in his in-box. The supervisor did not even shake his hand.

How companies respond to the recognition topic reflects on the culture of the company. A company is not defined by the profits alone. That is only one aspect of what a company has become. The character of a culture is defined by how it treats its people. Attention to recognition pays off for the retiring employee, those who witness the appreciation of the company, and the company itself.

The retiring employees are still an asset to the company even if they are not full-time. Many older workers are being called back as consultants or goodwill ambassadors for the company. Combined with their wisdom and knowledge of the industry they can continue to contribute.