How to Use Milestone Recognition to Cut Turnover

The modern workforce is increasingly flexible, with approximately 22% of employees working remotely and 24% of new jobs being hybrid. At the same time, employee turnover is on the rise. While this is more pronounced in sectors like retail and healthcare (according to the most recent BLS report), it’s a concern across all industries.

We also live during a time when around 50% of U.S. workers are actively searching for a new job, even when they’re already employed. So, if everyone is ready to jump ship at the first sign, how can companies boost employee loyalty and reduce turnover? 

In this article, we’ll explore how to combat this by focusing on milestone recognition. We’ll provide specific strategies for leaders to motivate their employees to stay and grow, tailored to the three primary work models of today: classic in-office, remote, and hybrid.

Universal Recognition Strategies for All Work Models

Let’s start with a few universal strategies that apply to all types of work models.

Recognition Shouldn’t Feel Transactional

Your employees want to feel their contribution brings value to the company, and a generic gift card or a shoutout buried in the footer of a newsletter is not going to accomplish this. After a certain threshold, even monetary gifts have diminishing returns.

Loyalty is earned with more than a bonus or a raise (once an employee’s basic needs are met). The message behind the gift often matters more than the gift itself, so the key is putting sentiment into your recognition. 

For example, when celebrating an engineer’s five-year anniversary, pair that salary increase with a personalized gift. A framed poster with photos from memorable team projects or a handwritten note from the CEO detailing a specific, impactful contribution can transform a simple transaction into a meaningful memory.

To make milestone recognition even more impactful, many companies are turning to employee recognition software. These platforms allow you to track achievements, personalize rewards, and ensure that recognition reaches the right employees at the right time. By integrating such software into your culture, you can turn every accomplishment into a memorable moment, strengthen engagement, and ultimately reduce turnover.

Be Timely And Specific

Don’t wait months to celebrate a work anniversary or lump multiple people together just to save money. Acknowledge each milestone when it happens and be specific about the individual’s contributions.

You don’t have to throw a party for each milestone, but it does help to acknowledge them and show interest. Say, one of your IT guys celebrates one year with the company on a Wednesday. It’s the middle of the workweek, and no one wants to stay after hours for cake and big words.

Still, this doesn’t mean you, the team leader, or company CEO should keep quiet. Send a personal Slack message or email that day. 

It can be something as simple as:

“Happy one-year anniversary! I still remember when you solved that major client issue in your first month. That quick thinking saved us from a huge headache and showed me you were a perfect fit for the team. Thanks for all you do!” 

This targeted message is far more impactful than a generic party that takes place weeks later, where they have to share the spotlight with five other people. It shows you’re paying attention and truly value their work.

Align With Company Values

Tie the recognition to the company’s core values. What does this mean? 

Say your company is focused on innovation. The talent you attract is similarly passionate about innovative technologies and processes. To keep them motivated and involved, celebrate important milestones by highlighting your employees’ innovative contributions over time. 

Remind the entire team about how their leader brought a new idea to life. Celebrate your accountant’s 5th anniversary with the company by highlighting their efforts to streamline the reporting process, which helped save countless hours, allowing the team to focus on more creative projects.

Get Feedback and Act on It

Do you know what’s going on with the people in your team? Have you heard their complaints and worries? Are you willing to make changes to accommodate their needs? 

If you want employees to spend more than a year in your company, you have to make them feel wanted and welcome. And the best way to do so is by listening to what they have to say and following through with action.

While open communication is a good policy, not all people are willing to open up in a professional setting. So, if you truly want to know what’s going on, design an anonymous employee feedback program.

When employees believe their responses can’t be traced back to them, they are more likely to speak up about problems (harassment, unfair treatment, management issues) and give more negative or critical feedback.

Listen, learn, and act on the information you gather. Your employees will notice your efforts and think twice before even considering changing companies.

Strategies for Classical (In-Office) Employees

People who prefer the 9-5 work model are more motivated by face-to-face communication and enjoy real-time collaboration. They may also feel more motivated by the office environment, where they can gossip, share a meal, or go to the gym with colleagues.

They like being out and in the open, so visible signs of recognition may work best. 

Here are a few ideas to keep in mind:

A Trophy or a Plaque 

A celebratory item employees can display on the desk or on a shelf where everyone can see may bring them a great deal of pride.

But it shouldn’t be just any plaque. Show your appreciation by carefully designing special, custom work anniversary gifts that include elements from their journey with the company. For instance, you should have different designs for 5-year and 10-year plaques, with the company logo and a list of the employee’s major achievements engraved. 

A Physical Wall of Fame

Create a dedicated space in the office where you can post photos and bios of employees celebrating a major anniversary. Make a big deal about it every time a new “veteran” is added, and always let newcomers know about what that wall represents. 

Work-Life Balance

This may not be immediately visible, but it’s sometimes more important than a pay increase. Office employees probably spend 1+ hours on the commute to and from the office, which is time they don’t get to spend with family or friends or doing something for themselves.

You can trust that people who have already been with the company for 2+ years will do their job even if they have to step out during working hours. So, be more flexible. 

Strategies for Remote and Hybrid Employees

The data shows the future of work is a combination of hybrid, remote, and AI. Companies that don’t consider this aspect are likely to fall behind, which is why it’s crucial to integrate these work models into every internal process.

In terms of recognition, employees who are physically away from the office tend to feel isolated and overlooked. 

The key is using digital tools and creativity to make them feel just as valued as their in-office counterparts. 

Here are a few tips on how to do this:

• Use company-wide digital tools (Slack, Teams, etc.) that are accessible to everyone, no matter if they’re in the office or at home.
• Create a dedicated “Kudos” or “Shout-out” channel. This is a public channel (for the company) where employees can post messages of thanks and recognition for their colleagues. This makes the recognition visible to everyone, creating a positive feedback loop.
• Make recognition visible in both worlds. If you have a digital wall of kudos, consider projecting it on a large screen in the office common area. Or, include a screenshot of the week’s best shout-outs in the company-wide newsletter. 
• Include everyone in the celebration. Host a team-wide virtual happy hour or coffee break to celebrate important milestones, like an in-office colleague’s 1-year anniversary with the company. 

To take things one step further, make sure your remote and hybrid employees are as taken care of as the in-office ones. For instance, if in-office employees get special treatment after they’ve been with the company for over five years, so should the ones working from home. 

After two or three years with the company, you could offer a one-time stipend to upgrade remote workers’ home office setup. Also, each year spent with the company may be celebrated with a 3-month gift subscription to a meal delivery service.

Focus on Consistency

Regardless of the recognition strategies you choose to implement, it’s essential to be consistent. The core elements must be the same for all employees, even if the delivery might differ (a gift sent to a remote employee vs. one presented in the office).

No one should feel left out or undervalued. Also, be transparent about how the program works for everyone. Make sure every employee knows what to expect and how they will be recognized for their tenure milestones, no matter their location.

By thoughtfully designing a program that’s flexible and genuinely appreciates employees at all stages of their journey, you can make a powerful impact on retention and build a culture where people feel seen and valued.

Wrap Up

Tenure-based recognition is a win-win strategy for companies and employees. For employees, it validates their dedication and highlights their contributions over time, fostering a sense of belonging and a deeper connection to the company. 

For companies, it’s a strategic investment in retention, which cuts costs with onboarding and training. Reduced employee turnover is also a vote of confidence for the company and a sign for top talent that their efforts will be appreciated and valued. 

It’s a simple, yet highly effective way to show that loyalty is a two-way street.