Years of service recognition programs also known as service awards or milestone awards, have recently come under scrutiny. These awards became common in the early 1900s to help retain factory workers.  In today’s knowledge economy, several may argue that the service award doesn’t make sense. Why are we recognizing someone for simply staying around?

I believe recognizing years of service is even more important today than it was years ago. The Bureau of Labor Statistics found the 2012 median number of years that wage and salary workers had been with their employer was 4.4 years. That’s 7.2 months shy of receiving even a 5-year service award. Employees often aren’t staying around, and most surveys show that approximately 40% of employees are actively looking for a new position. Right. Now.

Years of service recognition programs are best leveraged when they are part of an employee recognition strategy that also includes more frequent forms of appreciation such as day-to-day recognition and peer-to-peer programs. When used together, organizations can create a culture of appreciation that impacts both employees’ tenure and the bottom line.

Here are four pieces of data from recent surveys on employee recognition that provide reasons to recognize years of service.

1. It Matters to Your Employees

“A study by Towers Perrin found that the impact of milestone awards rings true around the globe. Most employees worldwide believe milestone awards show them the company cares about its people.”