Years of Service Programs: The Complete Guide

Both large and small businesses strive for employee retention. According to the Association for Talent Development, companies will spend an average of $1,252 per new employee on training and onboarding initiatives. Keep in mind that this is an average cost. Depending on how specialized a position is, this cost may be much more. This also does not include benefit enrollment or other onboarding costs you may offer new employees. If you have never budgeted for a new employee training or onboarding, a good rule of thumb is to take their annual salary, which will cost about 1-3%.

Long-term employment at one company benefits both the employer and the employee. For the employer, it reduces this process or training and the costs involved. A business also benefits from the employee's experience and knowledge of your business, their department, and the industry. For employees, long-term employment offers a sense of security and belonging and can bring a sense of meaning to their lives, knowing their contribution to the company is valued.

In the past, many individuals worked for the same company for the bulk of their careers. In the 90s, there was a shift to moving many jobs overseas. U.S. trade agreements have changed, and many companies have shifted manufacturing and other jobs to less expensive labor outside the U.S. Today, there is a resurgence of re-shoring employment and the realization of the value made in the USA brings to a product.  With technological advancements, many people have moved into “gig working.” People are leveraging technology platforms to create income for themselves. In this ever-increasingly more complex economy, it is more important than ever to hire the best candidates and have an employee retention plan in place. 

To begin designing your Years of Service program, first, you must decide if you will recognize each year of service or in increments. For example, 5, 10, 15, or 20 years of service. Celebrating every year becomes part of the company culture faster as the occasions happen more frequently. If you choose to celebrate milestones for your employees, this will bring more meaning to your program as the importance of each occasion is less frequent. For milestone programs, putting more thought into the gifts and how the Years of Service will be recognized is crucial. If the first time of recognition for an employee isn’t until five years of employment, then the gift and occasion need to be something to look forward to and avoid disappointment. In either case, whether celebrating each year or milestones, it is critical to keep it as consistent as possible.

The second step is choosing how to implement your New Year's of Service Program. Consider all the methods of internal communication your company uses. Will you make a company-wide announcement or send a private message to the employee? Most companies will have a designated person to make announcements, distribute gifts, and initiate internal conversations of congratulations. Typically, this person is in HR, but it can be any enthusiastic employee who can be relied on not to miss anyone and be as consistent as possible.

Below are a few gift ideas for your employees:

A small gift is appropriate for yearly acknowledgment gifts for employee recognition. Typically, this may be a gift card, office treats, a cash gift, or a combination. Years of Service pins for employees are a great way to recognize their tenure in your workplace for employee anniversary recognition gifts. Custom years of service pins are also an excellent option for a personalized look specific to your company or workforce.

To View All of PinMart's Years of Service Pins, Click HERE

PinMart’s Years of Service Pins come in various finishes and designs for years 1- 40. To make the gift more special, you can engrave them with a company logo.

Custom Gift Options

At PinMart, our low minimums make custom products easy and affordable. To really make your Years of Service Program something that employees look forward to, try adding different custom products for each of the milestone years they achieve.

1 Year Milestone = Custom Wood Keychain

5 Year Milestone: Custom Lanyard

10-Year Milestone: Custom Golf Gift Set

Here are a few suggestions that your company may also include in your Employee Retention / Years of Service Program:

1. Partner each new hire with a mentor within your company. You can choose to stay within a specific department when choosing mentors or to mix experienced employees from across the entire company’s departments. You can have formal or informal meetings between the two employees; however, it is essential for these meetings to establish a goal for the new employee and have the mentor help facilitate that goal. This is also an excellent way for new employees to feel like a part of the team.
2. Create a “club” for employees who reach a certain number of years in service to the company. One example could be a five- or ten-year club where the company will pay for all the members to go to a nice restaurant where they can relax and enjoy co-workers' company.
3. Use a Corporate Reward Service where employees are given a certain number of credits, and they can shop on the reward website and choose their own gifts.

At PinMart, we are proud to say that our employees have an average of about 15 years within our company. This includes every position within the company. Although PinMart grows every year, our customers recognize our team members and have grown to rely on them time and again. At PinMart, we celebrate the hire date of each employee. We make a company announcement within our internal messaging system and give a gift card. For milestones within the company, we also provide the employee a special gift to commemorate the occasion. As part of the PinMart on-boarding process, we include a custom wood coaster for their desk with their name and the year they joined our company. It is a small gesture but a thoughtful little gift to welcome them to the team.

These are just a few things we do as a company. Every company is unique and will have a different culture and way of implementing its Employee Recognition Program.

Have fun designing your Employee Recognition Program, and contact PinMart for all your Years of Service product needs.