The U.S. Mint has announced the end of the penny – a decision grounded in cost-efficiency and changing relevance. At nearly four cents to mint a one-cent coin, the math just doesn’t add up anymore.

Sound familiar? In the world of HR and compensation, we’re often faced with legacy practices that cost more than they’re worth, literally and figuratively. As the penny makes its exit, maybe it’s time we check the change jar on how we recognize and retain talent.

Be Strategic, Not Cheap

Let’s face it: some recognition programs are about as valuable as a lone penny in a parking meter. A company-branded water bottle or a quarterly “Employee of the Month” plaque might look good on paper, but do they really drive engagement?

This isn’t about spending more, it’s about getting more from what you spend – real value comes from programs that employees actually connect with. You can have high-impact, low-cost recognition strategies if they’re rooted in meaning and relevance.

Small Change, Big Impact

The penny may be small, but its phase-out will save tens of millions. Likewise, you can yield major returns by making small changes to your rewards strategy such as:

• Shifting from generic to personalized recognition
• Replacing annual bonuses with more frequent, timely rewards
• Empowering peer-to-peer appreciation to scale culture organically
• Reallocating budget from swag to learning, well-being, or development

It’s not about throwing money at the problem, but focusing your efforts where they truly matter. High value doesn’t have to mean high cost.

Stop Hoarding Old Coins (and Old Programs)

Many organizations hang on to outdated programs just because they’ve “always done it that way” – but nostalgia isn’t a strategy. If a policy, perk, or reward doesn’t reflect your culture or your employees’ needs today, it might be time to cash it in.

Much like jars full of coins gathering dust, old HR practices can accumulate and weigh you down.

The Real Currency of Retention

What truly retains top talent isn’t the occasional token of appreciation – it’s a consistent sense of value. Employees stay when they feel seen, supported, and aligned with the company’s mission.

Recognition should be a reflection of that value – not necessarily expensive, but thoughtful, specific, and tied to what your people care about.

A Smarter Kind of Change

As the penny exits the economy, it leaves behind more than just a slot in the register. It leaves a reminder: value is not about tradition or price tags, it’s about impact. In HR, it’s time to modernize our approach – because in 2025 and beyond, if your programs aren’t adding value, it’s time to make some change.