A years of service award is the simplest recognition program to run and the easiest to get wrong. Simple, because the trigger is a date nobody has to judge. Easy to get wrong, because a program that looks fine in its first year tends to drift: milestones missed, designs that change every reorder, and a 25-year award that looks no different from a 5-year one.
This guide covers how to design a program that still works in year ten: which milestones to mark, what to give at each, what to put on it and how to present it.
Which milestones to mark
Most programs mark every five years (5, 10, 15, 20, 25, 30 and beyond), and many add earlier milestones where turnover is highest, most often 1 and 3 years.
| Milestone | Why it matters | Typical format |
|---|---|---|
| 1 year | Marks getting through the first year | Pin or small desk piece |
| 3 years | Bridges the long gap to five | Pin |
| 5 years | The first major milestone | Pin plus a plaque or acrylic award |
| 10 years | A decade: usually presented publicly | Plaque or layered acrylic award |
| 15 and 20 years | Long tenure; the design should step up | Larger or multi-layer award |
| 25 years and beyond | The top of the program | The largest piece in the set, presented by leadership |
Whatever you choose, write the list down and keep it. A program that marks 10 years for some people and forgets it for others does more harm than no program at all.
Make each tier look different
The award at 25 years should be visibly more significant than the one at 5, or long tenure is not being recognized so much as counted. The easiest way to do this is one design family that scales: the same shape, color scheme and logo placement, getting larger or gaining layers at each tier.
Pins work well at the early milestones because they are worn and seen. Service pins can share one design with only the number changing, and the finish can step up with the milestone. Plaques and acrylic awards suit the milestones that are presented in front of colleagues.
Wording for service awards
Service award wording is short: the milestone, the name, the company and optionally one line of thanks.
- 10 Years of Service · Angela Ruiz · Thank you for a decade of dedication
- In Recognition of 25 Years of Loyal Service · Robert Chen · 2001 – 2026
- Celebrating 5 Years · Jordan Ellis · Here’s to the next five
- 20 Years · Thank you for being part of our story from the beginning
- With gratitude for 30 years of service · The Board and Staff of Summit Logistics
Keep the milestone the largest element. For retirements that follow a long career, see retirement plaque wording.
The IRS length-of-service rule
In the United States, a length-of-service award can be excluded from an employee’s taxable income only if it meets the employee achievement award rules. The main ones for service awards:
- It must be tangible personal property, such as a plaque, trophy or pin. Cash, gift cards and similar items do not qualify.
- It cannot be given in the employee’s first five years of employment.
- The same employee cannot receive another length-of-service award in the same year or the previous four years.
- Annual dollar limits apply per employee.
This is one reason so many programs start at five years and step in five-year increments. The rules are in Internal Revenue Code section 274(j) and IRS Publication 15-B. Confirm how they apply to your program with your tax adviser or payroll provider.
Running the program without missing anyone
- Pull the list from HR on a fixed schedule. Monthly or quarterly, not when someone remembers.
- Order in batches. A quarter’s milestones ordered together keep the design consistent and the ordering simple.
- Keep the approved design on file. Reordering the same design each year is what makes the set look like a program rather than a series of one-offs.
- Decide how awards are presented. An anniversary-date handover at a team meeting, or an annual event for everyone reaching a milestone that year. Both work; not presenting them at all does not.
- Include remote staff. Ship to home addresses and still read the citation at a meeting. See recognizing a remote or hybrid team.
Frequently Asked Questions
What years should service awards be given?
Most programs mark every five years: 5, 10, 15, 20, 25, 30 and beyond. Many add 1 and 3 years, where turnover is highest.
What is a good years of service award?
A pin at the early milestones and a plaque or acrylic award from 5 or 10 years up, all in one design family that gets larger or more elaborate with each tier so long tenure is clearly recognized.
What do you write on a years of service plaque?
The milestone, the employee’s name and the company, optionally with the years served and one line of thanks, such as “10 Years of Service · Thank you for a decade of dedication.”
Are service awards taxable?
Under US rules, a length-of-service award can be excluded from income if it is tangible property (not cash or gift cards), is not given in the first five years, and the employee has not received one in the previous four years. Dollar limits apply. Check with your tax adviser.
Can we reorder the same design every year?
Yes. Once the design is approved it can be reordered with new names and milestones, which keeps the program consistent.
Planning a recognition program?
Tell us which milestones you mark, roughly how many people reach each one a year, and send your logo. We will design the set and send a proof.
See corporate awards
