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Glossary of Employee Recognition, Total Rewards, and Company Culture Terms

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Service Awards

Service awards are a type of employee recognition that acknowledges and celebrates employees for their dedicated years of service to a company. These awards are typically given on milestone anniversaries, such as one, five, ten, or twenty years of service, and can include gifts, plaques, or certificates.

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What is the impact of service awards?

After a full year (or years!) of work at a company, employees need to be recognized. By recognizing and celebrating employees for their years of service, companies can demonstrate their appreciation and commitment to their employees. This, in turn, can boost employee morale, satisfaction, and loyalty, leading to increased retention rates and a more positive company culture.

How do service awards drive employee engagement and motivation?

Service awards show appreciation for an employee’s hard work and dedication. This helps them feel valued and cared for, which increases motivation and engagement. Additionally, really awesome service awards can get people excited, motivating them to stay with the company and reach the next milestone anniversary.

What are some best practices for giving service awards?

Make service awards meaningful and impactful by:

  • Making the awards meaningful and personalized to the employee.
  • Celebrating milestone anniversaries in a timely manner.
  • Celebrating in a way that’s comfortable for each employee (public/private). 
  • Using the awards as an opportunity to reinforce company values and culture.
  • Incorporating service awards into a broader employee recognition program to recognize and motivate throughout the year.

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