Enhancing Long Service Awards Program Consultations at HRUMCC November 2019

Awards and Recognition Long Service Awards Program Human Resources Union-Management Consultation Committee November 2019

Introduction At the October 30, 2018 HRUMCC meeting, there was a commitment made to review the Long Service Award Program and bring it back to the committee for further consultation. Feedback from union representatives suggested that consideration be given to providing better recognition at the 20 (and possibly 30 year) milestone(s). The purpose of this deck is to: a) provide the Human Resources Union-Management Consultation Committee (HRUMCC) members with an overview of the Long Service Awards (LSA) program at Health Canada (HC) and the Public Health Agency of Canada (PHAC); and b) consult HRUMCC members on options to improve the LSA program based on consultations with employees. 2

Background At this time, there is no Treasury Board Secretariat (TBS) policy for awards and recognition as it was archived in 1998 leaving all departments and agencies to manage their own internal recognition program. A policy instrument on awards and recognition is not anticipated to be included as part of the TBS Policy Suite reset. Currently, HC and PHAC recognize long service milestones at 10, 15, 20, 25, 30 and 35 years of service and every employee receives a personalized framed certificate of recognition signed by the Deputy Head (DH) and the Prime Minister (PM), as well as a letter of congratulations signed by the DH (Appendix A). Later anniversaries may be recognized, if requested. Employees who have 15, 25 and 35 years of service also receive a non-monetary item valued at $150, $250 and $350, respectively. The costs of the non-monetary items are based on the standing offer set by TBS which is due to be renewed January 2020. The costs of the certificate and non-monetary item is the responsibility of the Cost Center Manager of the employee being recognized. Employees may choose to accept or decline non-monetary items from the series of Seasons offerings as well as the printed certificate signed by the DH and PM. 3

Considerations Each organization is at liberty to administer a LSA program of their choosing or offer the program in accordance with the TBS master standing offer with fixed costs per certificate and non- monetary item per milestone. (Appendices B and C) TBS will put in place a new Master Standing Offer effective January 1, 2020 which may include a renewal of the award options. Recent consultations indicate that employees are satisfied with the LSA program overall, and the most common question asked is why there is no non-monetary item bestowed to eligible recipients at the 10, 20 or 30 year milestones. (Appendix D) The number of HC and PHAC employees who are eligible for 15, 25 and 35 long service awards has decreased from 2018 to 2019. The average cost per employee was $122 for 2018 and is anticipated to be $101 for 2019 for HC and $135 for 2018 and $94 for 2019 for PHAC. (Appendices E and F) As per the table to the right, the total number of employees eligible to retire drops significantly by the end of 2019 then remains consistent over the next five years. This would indicate that the bulk of baby boomer retirements is near completion and a younger population has entered the workforce. These forecasts do not include the number of new hires and transfers in/out as those numbers are unknown. Number of employees eligible to retire Year 2019 2020 2021 2022 2023 HC 588 169 PHAC 150 49 201 165 199 58 50 37 4

Options Option 1: Commence long service recognition at the 5 year milestone and keep current award schedule for the subsequent milestones Cost: estimated increase of $12,530 for HC and $4,340 for PHAC for 2019 with little to no change to the cost per employee Impact: slight increase in the financial burden to HC and PHAC; and positive impact on morale and retention, as recognition of service is awarded earlier in the employee s career Estimated Number and Dollar Amounts for 2019 Cost of Certificate and Non-Monetary Item (Not Including Taxes) HC Number of LSA Years of Service Award HC PHAC PHAC 179 62 $12,530 $4,340 Certificate + Gift ($70) 5 (NEW) 425 141 $14,875 $4,935 Certificate ($35) 10 276 92 $51,060 $17,020 Certificate + Gift ($185) 15 210 70 $7,350 $2,450 Certificate ($35) 20 65 17 $20,800 $5,440 Certificate + Gift ($320) 25 65 13 $4,550 $910 Certificate ($70) 30 22 2 $9,240 $840 Certificate + Gift ($420) 35 1242 397 $120,405 $35,935 TOTAL $97 $91 Average cost per employee for the new award schedule 5

Options (contd) Option 2: Reverse the current award schedule and start the recognition at the 5 year milestone Cost: estimated increase of $44,915 for HC and $15,420 for PHAC for 2019 and an approximate 30-40% increase to per employee cost Impact: modest increase in the financial burden to the department and agency; and positive impact on morale and retention, as a non-monetary item is provided earlier in the employee s career compared to the current program Estimated Number and Dollar Amounts for 2019 Cost of Certificate and Non- Monetary Item (Not Incl Taxes) Number of LSA Years of Service Current Award Schedule New Award Schedule HC PHAC HC PHAC n/a 179 62 $6,265 $2,170 Certificate ($35) 5 (NEW) Certificate ($35) 425 141 $57,375 $19,035 Certificate + Gift ($135) 10 276 92 $9,660 $3,220 Certificate + Gift ($185) Certificate ($35) 15 210 70 $49,350 $16,450 Certificate ($35) Certificate + Gift ($235) 20 65 17 $4,550 $1,190 Certificate + Gift (320) Certificate ($70) 25 65 13 $24,050 $4,810 Certificate ($70) Certificate + Gift ($370) 30 22 2 $1,540 $140 Certificate + Gift ($420) Certificate ($70) 35 1242 397 $152,790 $47,015 TOTAL $123 $118 Average cost per employee for the new award schedule 6

Options (contd) Option 3: Provide a certificate and a non monetary item at each five year milestone starting at the 5 year milestone Cost: estimated at $116,530 for HC and $36,340 for PHAC for 2019 and an approximate 100% increase to the cost per employee Impact: significant increase in the financial burden to the department and agency; positive impact on morale and retention Estimated Number and Dollar Amounts for 2019 Cost of Certificate and Non- Monetary Item (Not Incl Taxes) Number of LSA Years of Service Current Award Schedule New Award Schedule HC PHAC HC PHAC n/a 179 62 $12,530 $4,340 Certificate + Gift ($70) 5 (NEW) Certificate ($35) 425 141 $57,375 $19,035 Certificate + Gift ($135) 10 276 92 $51,060 $17,020 Certificate + Gift ($185) Certificate + Gift ($185) 15 210 70 $49,350 $16,450 Certificate ($35) Certificate + Gift ($235) 20 65 17 $20,800 $5,440 Certificate + Gift (320) Certificate + Gift ($320) 25 65 13 $24,050 $4,810 Certificate ($70) Certificate + Gift ($370) 30 22 2 $9,240 $840 Certificate + Gift ($420) Certificate + Gift ($420) 35 1242 397 $224,405 $67,935 TOTAL $181 $171 Average cost per employee for the new award schedule 7

Discussion Based on the options presented, we d like to solicit your thoughts and feedback. 8

Appendix A Current LSA program for HC and PHAC Tree Canada Certificate and Coaster or Keychain * Years of Service Certificate Signed by the PM and DH Letter Signed by DH Non-Monetary Item Lapel Pin * Yes ($35 value) Yes No Yes No 10 Yes ($35 value) Yes Yes ($150 value) Yes Yes 15 Yes ($35 value) Yes No Yes No 20 Yes ($70 value) Yes Yes, ($250 value) Yes Yes 25 Yes ($70 value) Yes No Yes Yes 30 Yes ($70 value) Yes Yes, ($350 value) Yes Yes 35 * These items are given to eligible recipients as part of the vendor s standard practice Government of Canada employees. 9

Appendix B Environmental Scan 107 departments and agencies administer their program in accordance with the TBS master standing offer which determines the costs of the certificate and non-monetary item per milestone. Each department/agency is at liberty to decide whether or not they choose to provide a certificate and/or a non-monetary item at specific milestones. Of the 107 departments and agencies: o 38 provide a non-monetary item at each milestone starting at the five year milestone and include a certificate starting at the 25 year milestone; o 14 provide a certificate and a non-monetary item at every five year milestone (five starting at the five year, seven at the 10 year and two at the 15 year milestone); o Eight provide a certificate and/or a non-monetary item at every 10 year milestone (starting at the 15 year milestone); and o Only HC and PHAC provide a certificate at each five year milestone (starting at the 10 year milestone) and a non-monetary item at each 10 year milestone (starting at the 15 year milestone) 10

Appendix C LSA Anniversary and Award Value according to TBS Master Standing Offer Certificate Signed by the PM and DH Years of Service Non-Monetary Item Total $35 value $50 value $70 5 $35 value $100 value $135 10 $35 value $150 value $185 15 $35 value $200 value $235 20 $70 value $250 value $320 25 $70 value $300 value $370 30 $70 value $350 value $420 35 $70 value $350 value $420 40 $70 value $350 value $420 45 $70 value $350 value $420 50 11

Appendix D Consolidation of Relevant Feedback The majority of respondents appreciate being recognized for their years of service and are supportive of the status quo; Several employees would appreciate receiving a non-monetary item at the 10, 20 and 30 year milestones in addition to receiving a non-monetary item at the existing 15, 25 and 35 year milestones; Several employees suggested other methods of recognition such as receiving an extra days off in lieu of a non-monetary item and a certificate and the option of making a charitable donation in lieu of a non-monetary item; Some employees would prefer to have the option to opt out of receiving framed certificate normally associated with the long service award, or be able to request a paper copy of this certificate; and Some employees feel it is an outdated and wasteful program and resources should be allocated elsewhere. Note: Consultations were held with a random sample of employees including HC and PHAC Branch Recognition Coordinators, HR Directors and their teams, and employees from the Young Professionals Network. 12

Appendix E Trend Analysis of LSA for HC Cost of Certificate and Non-Monetary Item (Not Including Taxes) Number of Long Service Awards Years of Service Award 20171 2018 20192 20171 2018 20192 Certificate ($35) Certificate + Gift ($185) Certificate ($35) Certificate + Gift ($320) Certificate ($70) Certificate + Gift ($420) 450 633 425 $15,750 $22,155 $14,875 10 458 438 276 $84,730 $81,030 $51,060 15 398 196 210 $13,930 $6,860 $7,350 20 209 170 65 $66,880 $54,400 $20,800 25 67 83 65 $4,690 $5,810 $4,550 30 80 49 22 $33,600 $20,580 $9,240 35 1662 1569 1063 $219,580 $190,835 $107,875 TOTAL $132 $122 $101 Average cost per employee 1 Includes FNIHB employees 2 Estimated amounts and costs 13

Appendix F Trend Analysis of LSA for PHAC Cost of Certificate and Non-Monetary Item (Not Including Taxes) Number of Long Service Awards Years of Service Award 2017 2018 20191 2017 2018 20191 Certificate ($35) Certificate + Gift ($185) Certificate ($35) Certificate + Gift ($320) Certificate ($70) Certificate + Gift ($420) 10 95 124 141 $3,325 $4,340 $4,935 15 93 145 92 $17,205 $26,825 $17,020 20 23 38 70 $805 $1,330 $2,450 25 38 39 17 $12,160 $12,480 $5,440 30 9 24 13 $630 $1,680 $910 35 4 11 2 $1,680 $4,620 $840 TOTAL 262 381 335 $35,805 $51,275 $31,595 Average cost per employee $137 $135 $94 1 Estimated amounts and costs 14