Long Service Awards: how to recognise loyalty the right way

Quick answer: The best long service awards feel personal, not procedural. They acknowledge what someone's contributed - not just how long they've stuck around. A thought-through gift, a genuine message from their manager, and the freedom to choose something they actually want will say "I'm so glad you're still here!" miles better than a certificate or a company-branded pen.

Why long service awards still matter

Long service awards might seem old-fashioned. But that's kind of a sign of the times. Average tenure is shorter than it used to be, and a lot of companies have dropped formal recognition programmes altogether.

But that's exactly why staying for the long haul matters more than ever. An employee who has been with you for five, ten or twenty years has sweated through restructures, leadership changes, battled off dozens of recruiters waving 'better offers' in front of them. Recognising that isn't just a nice gesture - it's a retention signal to everyone else in the business.

Research backs this up. According to the CIPD, organisations with strong recognition cultures report lower voluntary turnover and higher engagement scores. And Huggg's own Gifting Benchmarks Report found that companies using choice-based gifting reported stronger belief in retention impact than those using fixed gifts.

The problem isn't whether to recognise loyalty. It's how to do it without making the whole thing feel like a box-ticking exercise.

What makes a good long service award?

It should feel proportionate

A five-year milestone and a twenty-year milestone shouldn't get the same treatment. The best programmes scale the value and the gesture as tenure increases. A thoughtful gift at five years, a more generous one at ten, and something genuinely "oh wow, really?!" at twenty or beyond.

Most UK businesses spend between £50 and £250 at the five-year mark and £250 to £1,000+ for longer tenures. The exact figures will depend on your budget, but the logic is simple - the award should reflect the commitment.

It should offer choice

Generic gifts are the biggest pitfall of long service awards. A crystal vase or a company-branded watch might have been fine in 1985, but today's employees expect something they actually want.

Gift with Choice solves this neatly. You set the budget and curate a range of options. The recipient picks the gift they want. No guesswork, no awkward returns, and redemption rates are significantly higher than fixed gifts.

It should come with a genuine message

The gift matters, but the message matters more. A long service award that arrives as a parcel with no context misses the point. Pair it with a personal note from the employee's direct manager - not a template, not a company-wide email, but something that references what they've actually done.

It shouldn't be a surprise to managers

If the employee's manager doesn't know about the milestone, something has gone wrong. Long service awards work best when the manager is involved in the delivery - they're the person whose recognition carries the most weight day to day.

How to structure a long service award programme

Choose your milestones

The most common milestones are 1 year, 3 years, 5 years, 10 years, 15 years, and 20+ years. Some companies start at one year (especially in high-turnover industries like hospitality and retail), while others begin at five.

There's no single right answer. If your average tenure is two years, a one-year milestone might make sense. If it's eight years, starting at five is more proportionate.

Set a budget per tier

A typical structure looks like this:

• 1 year - a small gift or gesture (£10-£25) to mark the first anniversary
• 3 years - a meaningful gift (£25-£50) that says "we notice you've stayed"
• 5 years - a proper recognition moment (£50-£150) with a personal message
• 10 years - a significant gift (£150-£500) and ideally a public acknowledgement
• 20+ years - the big one (£500-£1,000+) with personal involvement from senior leadership

These are guidelines, not rules. What matters is that the value scales visibly so employees can see that staying longer is genuinely valued.

Decide who delivers it

The manager should always be involved. HR can coordinate the logistics - tracking dates, ordering gifts, managing budgets - but the actual moment of recognition should come from the person who works with the employee every day.

This is where recognition budgets help. Give managers a budget and the tools to act on it. They send the gift, they write the message, they own the moment. HR stays in the loop without being the bottleneck.

Track it without making it a burden

Spreadsheets work for small teams. For anything over about 50 employees, you need a system. HRIS integrations are increasingly available to automate milestone tracking - flagging upcoming anniversaries and triggering a reminder to the manager.

Until automation is in place, a simple calendar reminder with three weeks' notice gives managers enough time to write a personal message and choose a gift.

Common mistakes to avoid

Making it entirely HR-driven. If recognition only ever comes from a central team, it feels institutional. Manager involvement is what makes it personal.

Giving the same thing to everyone. A £50 gift card at five years and a £50 gift card at fifteen years sends the wrong message. Scale it.

Forgetting remote and hybrid employees. If your office-based team gets a public presentation and your remote staff get a parcel in the post with no fanfare, you've created a two-tier experience. Huggg solves the logistics here - no addresses needed, no login required, and the recipient sorts their own delivery.

Waiting too long to start. You don't need a 20-page policy to begin. Start with your next round of five-year milestones. Use a platform like Huggg, set a budget, let managers deliver the moment, and build from there.

How to make it easy with Huggg

Huggg is built for exactly this kind of recognition. You can:

• Send gift cards across eight categories - from coffee and dining to retail and experiences - in values from £5 to £300
• Use Gift with Choice for higher-value milestones so the recipient picks what they want from a curated range
• Send to anyone without needing their address - the recipient gets a link and sorts delivery themselves
• Give managers their own recognition budgets so they can act in the moment without waiting for HR approval
• Track everything centrally with reporting and budget controls

For a full guide to setting up a recognition programme, see the 2026 Employee Gifting Handbook. And if you want to understand the wider strategy behind employee recognition, our guide to employee recognition schemes covers the detail.

Explore our plans or start gifting for free.

Frequently asked questions

What is a long service award?

A long service award is a gift or gesture given to an employee to recognise their continued commitment to the company. It's typically given at key milestones - most commonly 5, 10, 15 and 20 years - and the value usually increases with tenure.

Are long service awards taxable in the UK?

Long service awards can be tax-free under HMRC rules if the employee has been with the company for at least 20 years, the award costs no more than £50 per year of service, and it isn't cash or a cash voucher. Awards at shorter milestones may still qualify under the trivial benefits exemption (£50 or less, not linked to performance). For more detail, see our guide to employee gifts and tax implications.

How much should you spend on a long service award?

There's no fixed rule, but typical UK ranges are £50-£150 at five years, £150-£500 at ten years, and £500-£1,000+ at twenty years. The key is that the value scales visibly with tenure.

What are the best long service award gifts?

The best gifts are ones the recipient actually wants. Gift cards, experiences, and curated gift selections consistently outperform generic branded items. Giving the recipient a choice - rather than picking for them - increases redemption rates and makes the gesture feel more personal.

Should long service awards come from the manager or HR?

Both. HR should coordinate the programme - tracking milestones, managing budgets, ensuring consistency. But the actual recognition moment should come from the employee's direct manager, paired with a personal message.

Do small companies need long service awards?

Any company that wants to retain good people benefits from recognising loyalty. You don't need a formal policy - even a genuine gift and a personal note at key milestones signals that you value commitment. Start small and build from there.