The average tenure for American workers has been on a steady decline for many years. In 2014, the median employee aged over 25 had been in their role for 5.5 years. By 2024, that was down to 4.8 years. As a result, not all employees are thinking about long-service awards.
However, not everyone is in a hurry to move on. Some people will provide years—or even decades—of commitment, which can provide a stable core to your team. It’s important to recognize and encourage that kind of long-term employee loyalty.
Why is it important to recognize employees' work anniversaries?
When companies recognize major milestones and anniversaries, they promote the idea of themselves as long-term employers. Your team will see that you value loyalty and consistency, which creates a sense of belonging. Over time, this encourages people to plan their career paths within your organization.
Having long-tenured staff offers a number of advantages, including:
- Reduced staff turnover: A work anniversary recognition program can help drive long-term employee retention. Keeping hold of your core team means spending less time on hiring and training their replacements.
- Improved employee engagement: People know that you value their hard work and commitment, which leads to even deeper engagement with your mission.
- Retained institutional knowledge: Experienced team members possess vital knowledge, which can include things like customer relationships and details of core processes.
- Cultural stability: A stable team is more likely to champion your vision, values, and goals. This helps create a positive company culture and a great work environment.
There are many ways to encourage long-term employee commitment, including career pathing and providing development opportunities. However, one of the simplest things you can do right now is to acknowledge anniversaries and thank employees for their years of teamwork.
Implementing a Years of Service employee recognition strategy
Consistency is the key to any recognition program. Employees need a clear target with well-defined milestones, which then helps keep them focused on the reward.
On a leadership level, here are some things you need to consider:
1. Create a system for tracking work anniversaries
First, make sure that you have a system for tracking work anniversaries. Your HRIS platform may allow you to automate some of this process. Appoint someone within the HR team to monitor upcoming anniversaries and alert leaders.
2. Define the key milestones
Most programs focus on a specific milestone, such as 1 year, 5 years, and 10 years. You can celebrate any number of years that you see fit, but make sure that the system is consistent and fair to all team members. It's also important to communicate the awards program to leadership and employees. Make sure everyone knows what rewards are on offer for loyal employees.
3. Learn more about employee preferences
How would your team like to be rewarded for hitting a service milestone? You can conduct regular surveys across all team members to learn about general preferences. These preferences can change over time and may vary between different age groups and career stages. Where possible, offer personalized rewards to team members who attain a major milestone.
4. Promote a culture of continued recognition
Recognition is a key part of any Total Rewards strategy. Management should take time to acknowledge team members for all significant contributions and successes, even if that is just a shout-out in the newsletter or during a team meeting. It’s a good idea to acknowledge all work anniversaries and then provide milestone rewards within this culture of recognition.
5. Keep reviewing your strategy
It’s a good idea to ask what other employers do to recognize their long-serving team members. Are you ahead of the industry average? Also, talk to your team and learn their feelings about milestone rewards. Years of service awards should be an incentive for retention, so keep an eye on staff turnover levels.
Ideas for work anniversary awards
How should you acknowledge major work anniversaries? It varies from company to company, with some organizations offering fun perks while others provide more tangible benefits.
Some of the work anniversary ideas that I have seen handed out include:
- Personalized gift box or company swag: A box filled with their favorite snacks, a custom mug, or some fun company swag to show appreciation.
- Paid Time Off (PTO): Give them an special day off to use whenever they’d like as a thank-you for their dedication.
- Gift card: Let them treat themselves with a Visa gift card or one from a store they love.
- Reimbursed celebration dinner: Cover the cost of a special dinner for them and a guest to celebrate their anniversary. The employee would submit an expense for this.
- Trophy, frame, or plaque: A personalized award to honor their years of dedication, especially for those big milestone anniversaries. A handwritten note with a personalized message can also be really impactful.
- Public recognition: Express gratitude on the organization’s social media or internal newsletter with a personal appreciation post.
- Experience: Let the employee choose from a list of unique experiences, like a virtual cooking class, wellness sessions, a cool subscription box, or another activity that matches their interests.
These are just a few work anniversary celebration ideas to help get you started. Ultimately, what matters is the individual being recognized. Whatever rewards you provide, they should be thoughtful, personal, and of value to the recipient.
Employee engagement: the secret to a successful team
Celebrating work anniversaries is just one approach you can use to improve engagement, drive retention, and build a culture of success.
Service milestone awards should be part of a broader employee engagement strategy. Other areas to focus on include professional development, compensation, and work-life balance.
Need some expert help with your employee engagement strategy? Book a call with a Helios HR expert and let's talk about how to get the most from your team!
