The Service Award is an employee recognition program that plays a vital role in strengthening workplace community, engagement, and employee loyalty.
Even though the concept of employee recognition, notably service awards, is not novel, many leaders still fail to do it frequently or efficiently. More than ever, employees want to feel appreciated.
A survey conducted by OnePoll on behalf of Bonusly reveals that almost half of American workers quit their jobs because they feel unappreciated. Another 65 percent hinted that they will be more productive if they feel the management will recognize their contribution.
Similarly, data collected by researchers at Harvard indicated that employee retention, morale, productivity, performance, and customer satisfaction significantly improve if managers of a company regularly provide recognition such as service awards.
What are service awards?
Service awards are presented to employees to recognize and celebrate how long they have been with an organization. Countries also present similar awards to their soldiers for long service.
They are typically tied to specific milestones, like one, five, 15, or 20 years of service. It shows the organization appreciates their contribution so far and also encourages others to exhibit similar loyalty, thereby fostering a positive and appreciative workplace culture.
Unique service milestone worth recognizing and celebrating
Service award ideas should be incorporated into your employee recognition program in ways that correlate with the milestone.
Tailor the gifts for each year so that it becomes a company culture and is easier to replicate for future hires.
Below are some milestone and service award ideas:
1 year of service awards
There is no better way to introduce your new employees to the company’s culture than with the recognition and celebration of their first year with the company.
The first years are important in your employees’ journey, and this is the period during which many of them quit to work elsewhere if they feel unappreciated.
Some of the gift and award ideas to recognize and celebrate the milestone include:
- Gift cards
- Dinner voucher
- Gym membership
- Group greeting card
- Charitable donations
3 years of service awards
At this stage, employees are well-settled and more engaged with the team. They are familiar with the company’s culture and want to grow.
Offering career progression opportunities within the organization can encourage employees to stay and become more productive.
Some of the gift and award ideas to recognize and celebrate the milestone include:
- Personalized letter from the CEO
- Paid travel
- Weekend getaway
- Custom award
- Group greeting card
5 years of service awards
The fifth year in a company is considered the expert stage. The employee is confident and an expert in their area.
In this stage, they are confident in their skills and may also be looking for better opportunities elsewhere if they feel unappreciated.
Some of the gift and award ideas to recognize and celebrate the milestone include:
- Personalized plaques and internal signage
- Custom award
- Framed fun photos
- Mention the employee in your company newsletter
- Framed certificate
- Extra days of paid time off
- Dinner at a high-quality restaurant
10 years of service awards
This is a stage of belonging. In this stage, the employees consider themselves invaluable to the company and a vital part of its progress over the last decade.
Some of the gift and award ideas to recognize and celebrate this impressive milestone include:
- Special recognition event
- Season tickets
- Custom award
- Stock option
- A raise
- Bonuses
- Development and training opportunities
15 years of service awards
This is a remarkable milestone. Employees with 15 years of service have undoubtedly invested a lot in the company; therefore, they deserve to be celebrated accordingly.
Some of the gift and award ideas to recognize and celebrate this milestone include:
- Custom jewelry
- Custom award
- Personal thank-you letter
- Luncheon for the recognized employee
- Special title
20 years of service awards
Employees at this stage are veterans. Some of the employees who have spent such a long time with the company are part of the first set of people employed by the firm upon its inception.
Some of the gift and award ideas to recognize and celebrate this spectacular milestone include:
- Donations to their favorite charity
- Company-paid vacation
- Custom award
25 years of service awards
At this stage of an employee’s career, they are more interested in passing on their acquired knowledge than in promotion or personal training opportunities.
It is a perfect time to celebrate all their previous accomplishments.
Some of the gift and award ideas to recognize and celebrate this milestone include:
- Naming a meeting room or office building after the honoree
- Custom award
- Family-paid trip
- Extravagant gifts
- Work anniversary gifts
- Exclusive membership or club subscriptions
30+ years of service awards
This is a rare milestone and deserves a noble celebration. Take them back on a trip down memory lane. Create a reminder of their journey so far in the company and their invaluable contributions.
Some of the gift and award ideas to recognize and celebrate this milestone include:
- Milestone scrapbook
- Commemorative video
- Custom award
- Long vacations
- VIP parking spots
- Access to a mentoring program
- Sabbatical leave
- Retirement bonus contribution
Benefits of service awards
Service award programs can offer a range of advantages for both employees and employers. Below are some of the key benefits:
Help to retain talents
The Bureau of Labor Statistics reported in January 2022 that the average employee tenure is 4.1 years.
Service award recognition shows employees that the company values their contributions. Employees who feel like their work is valued are more likely to stay at the same organization.
Increase engagement
Employees who feel appreciated for their work display a higher level of enthusiasm and are also more dedicated.
Increased engagement among employees will invariably result in improved productivity and profitability.
Improve brand and employer recognition
Many prospective employees research a company before applying to work for them. Companies with good service awards programs are more likely to attract top talents than those without.
These companies also have more satisfied employees, which results in improved customer service and brand recognition.
Cultivate a positive work-life balance
Service awards positively impact employees’ well-being, as they are more likely to be happier.
It helps to cultivate a positive work-life balance, which may reduce absenteeism and improve productivity.
