Service anniversary programs are changing - and so are employee expectations.

With multi-generational workforces the norm, companies are offering ever-greater perks to attract the right people. Coupled with the increasing likelihood of employees leaving within the first two years, handing out company-branded merchandise is no longer enough. And by year five — the common first milestone where recognition used to be given out — you may now have lost your best people.

So how can you adapt your program to recognise service anniversaries in a meaningful way, improving loyalty and retaining your top talent?

We looked at successful service anniversary programs and found they all have some things in common.

Common characteristics of successful service anniversary programs.

Company-wide recognition

Successful service anniversary programs are often integrated into a company-wide recognition program and communicated broadly across the business. Employees know what they can earn and when. And those who are recognised for their loyalty, are celebrated publicly.
 

Leadership role in recognition

Leadership take an active role in successful anniversary programs, congratulating employees in person, in front of peers and online. It is common that service awards are given out by senior executives and some companies even include face-time with company leadership as part of the award. This is a great opportunity for employees to share ideas and feedback with execs so is a win-win if you can offer it.
 

Increase in milestones

It is becoming more and more common for recognition to be given at one and three years, not starting at five. Commonly, service anniversaries are then celebrated every five years thereafter.
 

Recognition at retirement

Formal recognition at retirement is still common, with this being seen as the ‘big thank you’ for years of contribution.
 

Awarding elements

Awards that are most commonly given out include a gift or, if milestone recognition is part of broader recognition activity, points to redeem for a gift of choice. Commonly, the award is accompanied by a letter from senior execs, a personalised card or email on the date of the anniversary. Symbolic awards, such as plaques or certificates, still have a place however increasingly, as an accompaniment to a gift, not as the main feature.
 

Perks of loyalty

Progressive companies are offering additional perks in recognition of loyalty. We have seen anything from a day out of the office, to extra days of annual leave for each year of tenure, time in the office or out to lunch with choice of executives, job-swaps and even perks such as room upgrades or Champagne on arrival when an employee goes on holidays.
 

Recognition events

Recognition events feature heavily in successful programs. Anything from a mention at an all- employee meeting to a planned lunch or team event to celebrate the recipient. Public celebration is important. Some companies have a monthly meeting just for recognition of milestones to give recipients their moment in the spotlight.
 

Budget

Typical budget for the gift or award in Australia is $20 - 25 per year of service. In addition, companies spend up to $50 on a plaque or certificate and more on an event if they have one.
 

You don’t have to spend a lot of money to recognise employee loyalty. While everyone appreciates a gift on their anniversary, employees often state that what they look for most when it comes to their anniversary is recognition from the top down.