Creative reward ideas for employees, we’ve shared a few. But just because you had never considered...
Service Awards That Matter: How to Thank Employees for Their Loyalty
We may have talked some trash about trophies or seemed a little prejudiced against plaques. These physical awards can be a real prize at some organizations, especially if they’re cultural traditions.
However, service awards are supposed to be gestures of real gratitude. An important acknowledgment of someone’s dedication and loyalty, or exceptional goal-meeting. Those are all seriously positive emotions and behaviors we want to nurture. Handing someone a brick or disk with their name on it may do little more than make them wonder, “Was it all worth it?”
Today, we want to help make service awards for employees stand out from regular employee recognition. We’ll discuss what they are, why you should consider them, and how to make them meaningful.
What are service awards?
Service awards provide recognition to employees who have completed years of service at a company or otherwise demonstrated dedication to their job. Service awards may arrive on a regular work anniversary, but can also include:
- A certain number of years at a company (5,10,15, etc.).
- Another important work milestone, like reassignment or retirement.
- Outstanding contributions, such as a major performance achievement or relentlessly high morale where it’s needed.
In some cases, service awards may be presented to those who best champion company values or have taken on extra responsibilities.
Why do service awards for employees matter?
Service awards are one piece of a puzzle that may improve retention and morale. They can also serve as evidence that an organization sees and appreciates employee loyalty. This enhances the feeling that such loyalty will be reciprocated, which is reassuring to a modern workforce that’s warding off burnout and increasingly prone to quiet cracking.
Truthfully, they may be more important than ever, as the state of job tenure and retention is currently up in the air. One side believes that Millennials and Gen Z want to job shop and hop, sticking around for no more than a year or three. There’s some data behind this, as well as Gallup polling stating that 60% of Millennials are open to leaving.
However, others say The Great Stay is underway. Following the pandemic, employees are looking to stick with their jobs longer. The catch is that they want companies with an inclusive culture, one that sees them as human beings and supports work-life balance.
No matter which perspective rings truer to you, recognition is the way toward retention. In addition to everyday recognition, genuine appreciation for specific contributions means no effort feels wasted at work.
The problem with traditional (outdated) service awards
Service awards have been a thing forever. If they’re so great for retention, why does low-to-middling retention exist? The answer is that a lot of places just haven’t kept up with the times. Here are three factors rendering many service awards powerless.
1. Generic physical awards.
Standard, corporate plaques and trophies are fine as a token in some environments. Still, employees probably wouldn’t miss them if they left. They’re impersonal and end up sitting in a drawer once we’re tired of dusting them.
2. Annual ceremonies.
Infrequent recognition is almost as bad as no recognition. In general, recognition that doesn’t come on time doesn’t feel as meaningful. If your work anniversary was in June and isn’t acknowledged by leadership until December, it sends the message that it was an afterthought or formality.
3. Low-impact messaging.
Why are we grateful for loyal employees, and does the service award convey that? We know the benefits of good retention: higher productivity, stronger culture, greater customer satisfaction.
Letting employees know–with clear examples, if possible–what their dedication has done for an organization gives them a sense of pride that can carry them for a whole extra year.
The fix: Peer involvement
Notice something (or someone) missing from that last part on the pitfalls of poorly designed service awards? Coworkers, colleagues, work besties, teammates, collaborators.
You won’t find any of them on the list of mistakes because you really can’t go wrong with including them. At the same time, they aren’t included so much, and that could be the biggest mistake of them all.
Milestones and achievements feel more natural, deserved, and meaningful when the people who see your daily contributions are celebrating with you. Four ideas for including peers:
1. Peer nominations.
If you’re looking to award exceptional service, don’t use your own metrics alone. They may not tell you who is the most helpful or who lifts everyone’s spirits. Invite everyone to nominate one another for specific awards, and have them explain why.
2. Employee wall spotlight.
If an employee is about to reach their fifth work anniversary, break the news on the employee wall (digital or physical) and leave space for their coworkers to share a memory, a message of gratitude, or heartfelt congratulations.
3. Informal virtual or in-person celebrations.
It might seem more special to hold off on congrats until the big company gala, but remember, time is of the essence. A small, low-pressure celebration, whether it’s an in-person coffee break or happy work anniversary memes in the team chat, can be much more culturally aligned without interrupting everyone’s day.
4. Natural tie-ins to daily peer recognition.
If you’re already using a peer recognition tool as part of your program, you’re in luck. Add service celebrations to the activity lineup. It alerts coworkers to the occasion so they can celebrate publicly.
For instance, with HeyTaco, the Milestones feature can automate timely, public recognition that triggers a flurry of congrats. The honoree can get enough virtual tacos to jump a few spots on the leaderboard, closing in on the reward they were already earning toward.
|
🤝 What to do for their work anniversary? If you’re celebrating years of service, consider some of these work anniversary ideas, with an emphasis on non-monetary, meaningful recognition. |
Your best practice playlist for service awards that hit the right notes
Before we dip out, here are the keys to keep in mind when designing service awards for employees.
|
Timing |
ASAP. Milestones should be acknowledged on the day of, even if the public shoutout is reserved for the weekly meeting. Just don’t reserve acknowledgment for a few times a year. |
|
Personalization |
Always use someone’s name and take their personal preferences and interests into account. |
|
Value alignment |
Recognition should align with the company’s values in both proportion and presentation. You’re acknowledging someone who stands out, but the event should not stick out like a sore thumb. |
|
Visibility |
Unless someone has expressed a preference for privacy, ensure that peers have the opportunity to celebrate their coworker with a public acknowledgment. |
|
Impact |
Impact is a concern in multiple areas here. Measure the impact your efforts have on retention and morale. Also, share the impact an employee’s loyalty has had on the organization that they can use as proof that they’re where they belong. |
|
🎁 Still searching for the perfect gift (or non-monetary experience)? Here are even more tips and ideas for meaningful milestones. |
Enhance service awards with the peer-propelled power of HeyTaco
No matter how you choose to handle service awards, everything’s better when the team has some of the power. It’s another event that they can ritualize as well as an opportunity for camaraderie.
When you use a peer recognition tool like HeyTaco, everyday celebrations happen more organically. Peers are already armed with a gesture (🌮) of goodwill that’s fun and lighthearted. For remote teams, HeyTaco upgrades what would have been a simple “Congrats!” in the team chat and transforms it into a ritualized celebration that’s built right into everyone’s workflow.
Learn how to make gratitude your team’s superpower and get up to speed on creating a culture of recognition.

