Rethinking Long Service Awards in the Modern UK Workplace

Author: Sarah Jefferys

Historically, these awards have been a cornerstone in recognising loyalty and dedication, often celebrated with plaques, gifts, or monetary bonuses. However, as the average length of employment decreases, organisations must reassess the relevance and effectiveness of these awards in fostering employee engagement and loyalty.

The changing landscape of employment tenure in the UK

According to the Office for National Statistics (ONS) People in work - Office for National Statistics, the median job tenure for UK employees is approximately 5 years, with younger workers typically having shorter tenures¹. For instance, workers aged 25 to 34 have an average tenure of around 3 years, compared to those with over 10 years for those aged 50 and above. This shift is largely driven by millennials and Gen Z, who prioritise career growth, work-life balance, and meaningful work over long-term loyalty to a single employer. The Deloitte Global 2024 Gen Z and Millennial Survey found that a large percentage of millennials in the UK expect to leave their jobs within two years².

Generation Z and the need for instant recognition

Generation Z, the newest entrants to the workforce, have grown up in a digital age characterised by instant feedback and rapid communication. This generation values immediate recognition which can be at odds with the traditional long service award model that rewards tenure over extended periods.

For Gen Z, the need for instant recognition is driven by several factors:

1. Digital natives: Having grown up with technology, Gen Z is accustomed to the immediacy of social media and digital interactions. They expect similar immediacy in workplace recognition.
2. Career development: Gen Z prioritises personal and professional growth. They seek regular feedback to understand their progress and areas for improvement, which helps them advance in their careers.
3. Engagement and motivation: Instant recognition can boost engagement and motivation by acknowledging contributions in real-time, reinforcing positive behaviours and achievements.

Given these preferences, long service awards may become less relevant for Gen Z, as they may not align with their expectations for timely and frequent feedback. Organisations need to adapt their recognition strategies to meet these needs, ensuring that all employees feel valued and appreciated.

Adapting recognition programmes

To address disconnect and prevent age discrimination, companies can adapt their recognition programmes to reflect the modern employment landscape and take broader proactive steps. This might include:

1. Flexible recognition criteria: Instead of solely rewarding tenure, organisations can recognise achievements, contributions, and milestones that align with company goals and values. This approach can foster a culture of appreciation and motivate employees to excel in their roles and ensures contributions and achievements are valued, irrespective of the employee's age or tenure.
2. Personalised rewards: Tailoring rewards to individual preferences can enhance their impact. Offering choices such as professional development opportunities, experiences, or charitable donations can make recognition more meaningful.
3. Frequent recognition: Implementing regular recognition initiatives, such as quarterly awards or peer-to-peer recognition programmes, can maintain engagement and motivation without relying solely on long service milestones.
4. Training and awareness: Conduct regular training sessions to raise awareness about age discrimination and its impact. Educating managers and employees about unconscious biases can help create a more inclusive environment.
5. Feedback mechanisms: Implement feedback systems where employees can voice concerns about recognition practices. This allows organisations to continuously improve their programmes and address any perceived biases.
6. Mentorship and development opportunities: Encourage mentorship programmes that pair employees across different age groups. This fosters mutual learning and respect, breaking down age-related barriers and promoting a culture of inclusivity.

Conclusion

As the workforce continues to evolve, so too must the strategies for recognising and rewarding employees. Long service awards, while still relevant in certain contexts, require a thoughtful approach to ensure they continue to align with the values and expectations of today's employees. By adapting recognition programmes to be more inclusive, personalised, and frequent, and by actively preventing age discrimination, organisations can effectively engage and motivate their workforce, regardless of tenure. In doing so, they not only honour loyalty but also celebrate the diverse contributions that drive their success.

How we can help

Here at Gallagher Reward Consulting, we have the expertise to work with our clients with everything from designing a new reward framework to undertaking pay benchmarking, tailored to your organisation. Get your journey started with us today!