How do employers recognise long service?

Around (88%) of employees believe it is important for their employer to prioritise building a culture of appreciation, yet only 72% feel this has been done, according to Canva’s October 2024 research. Long-service awards are one form of employee appreciation and recognition which employers can utilise to ensure more employees feel appreciated and recognised for their work.

Long-service schemes

Long-service awards are used to recognise and reward employees for working for an organisation for certain lengths of time. Today, employers can design and use online platforms to trigger and scale these, perhaps with automated milestones for larger organisations. This can ensure no work anniversary or significant service milestone goes unnoticed.

A multi-faceted approach can be effective, because employees appreciate genuine, specific words of appreciation and fair, equitable recognition, says Niamh Graham, senior vice president, global human experience at Workhuman. “Service milestones can transform work achievements into social celebrations with personalised messages, images, and videos,” she says. ”This approach leaves a lasting impact on recipients, fostering gratitude throughout the organisation and enhancing engagement, retention, and culture.”

A heartfelt message from a manager, a curated reward aligned to their interests, or a public celebration within the team or organisation can help make an employee feel genuinely seen and valued. Additionally, employers can mark achievements and service milestones through personalised e-cards via email or a recognition platform.

Ankur Sharma, chief product officer at Perkbox Vivup, says: “We’re seeing more integration between recognition and other moments that matter, tying in wellbeing, social value, and peer-to-peer input. It’s becoming less about tenure for tenure’s sake, and more about reinforcing the cultural thread that says: ‘We appreciate your journey with us.’”

Schemes can be an employer’s way of showing that it values employees’ commitment, says Kim Mcinally-Buckley, customer success manager at recognition software provider Mo. “For the employee, it’s a reminder that the organisation sees and appreciates them and their dedication,” she explains. ”Employers could mention the recognised employees in an organisation-wide newsletter, a shoutout on a communication platform, or during a dedicated award ceremony.”

Lengths and awards

Typically, service milestones are marked at 10, 20, and 25 years, or even above this. Some employers have broadened this to include one, three, and five-year anniversaries, to help build a sense of belonging for employees from the outset. Rewards can increase in size or value along with the length of service and usually include additional holiday days, gift cards and vouchers, and cash payments. Employers also award experiences such as days out or weekend breaks, or even a reserved parking space.

Some platforms have points associated with each milestone that increase over time, enabling employees to choose what to exchange their points for at a time that suits them. They could also receive a flexible balance to spend in a platform-based shop, which can include products, experiences and retailer vouchers.

“Increasingly, we see employees given the chance to choose either from a catalogue of rewards or something more bespoke,” says Sharma. ”What’s especially powerful is when the reward ties back to their values and is personalised. For example, donating the reward to a charity of their choice. The best schemes combine flexibility, personalisation, and authenticity.” 

It should be noted that employees are required to pay income tax and national insurance contributions (NICs) on the monetary value of a cash award. Employers must add the amount to employees’ other earnings and deduct and pay class one national insurance and pay-as-you-earn (PAYE) tax, and report the amount on a P11D form.

While vouchers, gift cards, and physical items are also subject to taxation, there is an income tax and NI exemption for non-monetary long service awards of up to £50 per year of service, as long as employees have not received a long-service award in the last 10 years. If the award surpasses £50 per year of service, the excess amount is subject to benefit-in-kind tax.

Employers also have to report long-service awards that are part of a salary sacrifice arrangement.

Popularity and importance

Long-service recognition should focus on acknowledging contributions employees have made over time and not just be a box-ticking exercise. In today’s hybrid and dispersed work environments, where employees tend to move jobs more frequently, this can help create a sense of connection. Such schemes are important to organisational culture, while recognising dedication can build loyalty and improve morale, says Matt Norbury, chief executive and founder of Each Person.

“When employees feel appreciated for their hard work, it boosts job satisfaction and encourages them to stay and continue doing their work,” he says. “NHS [employers] are interested in celebrating the work their employees have accomplished throughout their time with the organisation; some of whom receive rewards for 30 years of service and more.”

Schemes are more popular than ever, particularly in an employment market where retention is a strategic priority. adds Sharma.

“In 2019, we saw 250 long-service recognitions and by 2024, that surged to 16,000,” she says. ”We’ve already crossed 10,000 recognitions in the first few months of 2025. People are craving meaningful moments for contributing and being part of a team’s shared journey, not just output rewards. Employers are recognising that quieter moments of appreciation are just as powerful for building emotional loyalty.”

Long-service awards, therefore, have the ability to increase employee engagement and motivation, and play a key part in employers’ recognition strategies.