Awards.com says service awards should start at year one

Awards.com has released a guide arguing that years of service programs should begin at an employee’s first anniversary, not year five. The company says earlier, better-matched recognition can improve retention and give employers a lower-cost way to keep milestones visible.

Why it matters: - Employers are rethinking service anniversaries because most turnover happens in the first two years. - Awards.com says waiting until year five misses the workers companies most want to keep. - Recognition is tied to retention, and the company points to research showing unrecognized employees are twice as likely to say they will quit in the next year. - The same research estimated the global cost of turnover and lost productivity at roughly $322 billion.

What happened: - Awards.com published a guide called "How Companies Are Rethinking Service Anniversary Awards." - The guide argues that service awards should start at one year instead of five. - The guide also says each milestone should get its own award moment instead of being folded into a performance review. - Awards.com released the guide alongside its years of service collection on the company website.

The details: - The service ladder in the guide breaks into three stages. - Early milestones from one to three years call for simple pieces such as engraved glass or acrylic. - Mid-career milestones from five to fifteen years call for optical crystal and perpetual awards. - Long-tenure milestones of twenty years and up call for larger, more personal pieces that name a specific contribution. - Perpetual and stacking awards use one display piece and add a low-cost engraved plate or block each year. - Awards.com says that approach keeps annual recognition affordable and frees budget for milestone rewards. - Employers can redirect savings toward a cash bonus, a gift, or branded swag at five-, ten-, or twenty-year marks. - Awards.com engraves every piece free of charge, provides a proof before production, and has no order minimum.

Between the lines: - The guide reflects a shift from long-tenure loyalty models to a more frequent, retention-focused recognition strategy. - The pitch is not just about sentiment. It is about using lower-cost annual recognition to support bigger, higher-impact rewards later. - Awards.com is also positioning the physical award itself as a daily reminder of belonging, not just a commemorative object.

What's next: - Employers can use the guide to redesign service programs around earlier milestones. - Companies that already have anniversary programs may use perpetual awards to keep recognition visible every year. - Awards.com is steering buyers toward single-item orders or full tenure programs depending on budget and scale.

The bottom line: - Awards.com’s message is simple: recognize people earlier, tailor the award to the milestone, and use service anniversaries as a retention tool instead of a five-year formality.