More Than a Milestone: Why Service Awards Matter

Service awards have been around for a long time – and for good reason. When done well, they remind employees that their time, effort and loyalty don’t go unnoticed. But here’s the thing: service awards aren’t just about hitting milestones. They’re also a powerful tool for keeping your people on board. 

In our Trendicators 2024 Recognition Survey, 32% of respondents ranked Length of Service recognition as important to them. Let’s take a closer look at why these moments matter and how you can use them to support retention in a more meaningful way. 

Timing Makes a Difference 

An analysis of service award data shows that over 58% of employees leave within their first three years, with turnover peaking in year one. That's where organizations miss the mark! By waiting for the five-year workiversary to give out their first big service award milestone, they are missing the opportunity to recognize employees at key points in their journey – like their first and third years. Celebrating employee tenure earlier and more frequently can reignite an employee’s sense of purpose and belonging. It’s a small gesture, but one that often comes at just the right time. 

Reflect and Reconnect 

Service anniversaries are worth more than a quick shoutout or a generic message. When done thoughtfully, they allow people to look back on their accomplishments and feel proud of their contributions to the organization. They’re also a great opportunity to loop in peers and leaders to join the celebration – and reinforce a culture of appreciation across the team! 

Recognition That Moves the Needle 

Service awards make a bigger impact when they’re meaningful. So, it’s important to prepare and train your managers to deliver this important recognition in a way that feels personal and timely – and that aligns with company culture and values. Supporting that recognition with a thoughtful selection of gifts that reflect the moment makes it stick with employees for years to come. Meaningful recognition such as this keeps people engaged with their work and your company. 

Strong Retention Starts Here 

Pairing service awards with a broader recognition strategy shifts them from a ceremonial event to a proactive part of your retention plan. At the end of the day, service awards are about showing people that they’re valued and that they belong. When done with intention, they help reinforce a culture of appreciation that keeps teams connected and committed. 

Let’s celebrate more than years and truly appreciate the dedicated employees behind them! 

Ready to make your service awards more effective? 

Visit Hinda.com to explore recognition solutions that show your people they matter – every step of the way.