• An employee service award is when an employer celebrates an employee’s longevity with the company.
• There are companies available to design service award programs for employers.
• Awards can range from traditional merchandise to lifestyle gifts.

A service award, or milestone recognition, is when an employer celebrates an employee’s longevity with the company. The reasons for implementing a service award program can vary, but the most common reason is to publicly demonstrate to employees how much they are appreciated — either through a gift, a certificate, or a service award dinner. A service award is the most common and expected method of appreciating employees, and studies have shown that implementing an employee service award program can have significant impact on employee loyalty, morale, and turnover, while at the same time promoting the company’s culture.

The following factors should be considered when creating a service award program:

• Budget
• Number of service years to be recognized
• Administration of program
• Company culture
• Method of recognition

There are companies with experts available to design a service award program for employers. Their involvement can be very limited, like supplying a catalog of items for the employer to choose from, or more complex, like offering online ordering to employees for flexibility and paperless administration. These specialized companies can also help an employer communicate the recognition program to employees. Awards are often imprinted with the company logo.

Awards can range from traditional merchandise, like:

• Plaques
• Award pins
• Clocks
• Crystal
• Award rings

To lifestyle gifts, like:

• Electronics
• Tools
• Fashion accessories
• Home and garden items

A small company may choose to administer the program in-house, keeping track of service milestones on a spreadsheet and purchasing suitable gifts as needed.

The amount of money budgeted for a customized program is all that limits the possibilities.