Retaining employees long term is something worth celebrating. In today’s competitive job market, keeping talented people engaged and committed to your organisation is becoming increasingly challenging.
Long service awards, which are typically recognised at five-year intervals, provide an excellent opportunity to acknowledge employee loyalty and dedication. Reaching a five-year milestone is a significant achievement for both the employee and employer, particularly at a time when workforce mobility is higher than ever. Research from Gallup has highlighted that millennials have become known as the ‘job-hopping generation’, making long-term retention an increasing challenge for many businesses.
Recognising service milestones not only rewards the individual employee but also sends a positive message to the wider workforce that commitment and contribution are valued. Done well, long service awards can strengthen engagement, boost morale and encourage employees to build a long-term career within your organisation.
The benefits of long service awards?
According to Love2Shop, employers who introduce long service benefits see up to 20% less staff turnover compared to businesses without.
Reducing employee turnover can lead to substantial savings on recruitment, onboarding and training costs, while helping businesses retain valuable knowledge, skills and experience within the organisation.
For employees, receiving recognition for their commitment and contribution helps them feel valued and appreciated. It acknowledges the effort they have invested over the years and reinforces that their loyalty has not gone unnoticed. This can improve job satisfaction, boost morale and strengthen engagement, making employees more likely to remain with the business and continue performing at their best.
Long service awards also send a positive message across the wider workforce, demonstrating that commitment is recognised and rewarded, which can encourage other employees to build a long-term career with the organisation.
Long service award ideas
Before introducing a loyalty framework, it’s important you get the balance right and cater to your specific organisation. Giving staff an extra holiday every ten years is not going to be appealing enough reason to stick around.
As mentioned above, rewards are usually given for 5, 10 and 20 years long services. However, if you are in a sector such as retail and hospitality with a typical high staff turnover, 5 years is unlikely to keep staff. You should then consider introducing them as early as every year or two years. Whether you are looking for ideas for a 20 year reward or 2 years, here’s ideas that we’ve found to be most effective:
Gift Cards and Vouchers
Gift cards and vouchers remain one of the most popular options because they give employees the freedom to choose something they genuinely want. Whether it’s shopping, dining out, entertainment or a weekend experience, employees can select a reward that suits their interests.
Options such as Love2Shop, One4all and Buyagift provide flexibility and are suitable for a wide range of budgets.
Physical Item
A personalised gift can provide a lasting reminder of an employee’s contribution to the organisation. Examples include engraved trophies, personalised plaques, watches, jewellery or branded keepsakes.
However, A branded pen is not going to encourage people to stay for longer. We would encourage you to combine this with a a gift card or voucher.
Additional Holidays
One of the most common loyalty rewards includes additional holidays. This can be an additional day off each year or multiple days when the employee hits a certain length of service.
Ideas for Longer Service
Reserved parking
For employees who travel regularly to work, a reserved parking space can be a simple but valued reward. Offering a dedicated parking space for a period of time following a significant service milestone can provide an ongoing reminder that their contribution is appreciated.
Sabbatical
Long-serving employees often benefit from an opportunity to recharge and focus on personal interests. A paid sabbatical can provide valuable time away from work while rewarding years of dedication.
Several large employers have introduced sabbatical programmes as part of their long service offering. For example, Nando’s provides employees with a paid four-week sabbatical after every five years of service.
Share Schemes and Profit Sharing
For longer-serving employees, particularly within growing businesses, offering shares or access to profit-sharing schemes can create a stronger connection between employee contribution and business success.
These schemes can increase engagement, encourage retention and help employees feel invested in the future of the organisation.
Experiences and Team Celebrations
Recognition does not always have to be financial. Some organisations choose to celebrate service milestones with meals, team events, experience days or awards ceremonies.
Public recognition can often be just as meaningful as the reward itself, particularly when colleagues and leaders acknowledge the employee’s contribution.
Common Benefits for Each Sector
Healthcare & Public sector:
Milestones: 10, 20, 25, and 40 years
Top Awards: Certificate and branded gift, additional Leave, or public recognition.
Retail & Hospitality
Milestones: 1, 3, and 5 years
Top Awards: staff discounts, gift cards, extra holidays and experiences
Manufacturing & Engineering
Milestones: 10, 20, and 40 years
Top Awards: Physical gifts, financial bonuses, and celebration events or dinners
Keep It Consistent
Whatever approach you choose, consistency is essential. Employees should understand how the scheme works, when awards are given and what rewards are attached to each milestone.
Applying awards fairly across the organisation helps avoid perceptions of favouritism and ensures the scheme remains credible. Consider creating a clear long service policy that outlines eligibility, milestones and rewards.
Communicate with Employees
Before launching a long service award programme, speak to your employees and find out what they would genuinely value. What works for one workforce may not work for another.
A simple employee survey can provide valuable insight into the types of rewards that are likely to have the greatest impact. Some employees may value additional leave, while others may prefer financial rewards, experiences or flexible working options.
Regularly promoting service anniversaries internally can also reinforce the importance of loyalty and help create a culture where achievements are recognised and celebrated.
How The HR Booth Can Help
Employee retention remains one of the biggest challenges facing employers today. Long service awards are just one part of creating a workplace where employees feel valued, engaged and motivated to stay.
At The HR Booth, we support organisations with employee engagement strategies, reward and recognition programmes, retention initiatives and wider people management practices. We can help you develop practical solutions that improve employee satisfaction, strengthen workplace culture and reduce staff turnover.
If you would like support reviewing your employee benefits, long service awards strategy or retention plans, get in touch with our team today.
