Understanding the Importance of Work Anniversaries

One thing “The Great Resignation” taught businesses is the value of reducing employee turnover rates. In 2022, voluntary turnover or quitting employees accounted for 70% of all U.S. job separations. The increase in employee turnover means increased costs, product failure, and decreased employee morale. 

For example, training an employee takes time and money. If an employee leaves quickly, the company wasted valuable resources. It is estimated that the cost to replace an employee ranges from 90% to 200% of the worker’s salary based on experience level and tenure. 

Turnover occurs for many reasons, but staff appreciation is one effective way to increase employee retention. There are many ways show gratitude for team members, but none more valuable than their work anniversary.

So, when it comes time for an employee to celebrate the anniversary of their hire date, taking the time to recognize their dedication plays an important role in keeping them engaged. 

Why a Work Anniversary is Important

A work anniversary might seem like just another day. However, it is an opportunity for you and the employee to reflect on how both parties will move forward together. There are many reasons why a work anniversary is an important employee milestone worth acknowledging. Listed below  are just a few:

A work anniversary is a time employees might consider leaving

According to data from CEB, a best-practice insight and technology company, “work anniversaries (whether of joining the company or of moving into one’s current role) are natural times for reflection, and job-hunting activity jumps by 6% and 9% respectively, at those points.”

These statistics demonstrate how a work anniversary is treated can become pivotal in how an employee chooses to engage with the company moving forward. By celebrating their anniversary, you are doing what is possible to remind them they are valuable to the company. It also will serve as a reminder of their interpersonal connections with their colleagues. Both of these reminders can help reduce employee turnover rates. 

Read more: 11 Ways to Stop Losing Employees.

A work anniversary is a “peak” moment 

As described by the Rewards and Benefits Association, a peak recognition moment is a joyful or energizing instance during their “everyday” work experience. Companies that focus on creating regular peak moments will see benefits. 

According to this article, “workplaces that provide peak moments are 13x more likely to have highly engaged employees and 3x less likely to have employees experience moderate to severe burnout.” 

A peak moment can be as simple as a moment of recognition or a celebration like a work anniversary. Therefore, instituting a system to celebrate a work anniversary will enhance the employee’s positive feelings toward the company’s ability to counteract the dull or difficult aspects of the job.

A work anniversary creates a sense of purpose

As an employee approaches their work anniversary, a company can use this time to demonstrate their value to the organization. Expressing these sentiments of appreciation for their contributions, both in their work and attitude, can remind them of their purpose within the company. Additionally, as part of honoring the milestone, the employee’s leaders can use this time to set goals and adapt their work demands to their current needs. 

Establishing a sense of purpose is vital to establishing a sense of community. A Global Culture Report by O.C. Tanner found that “employees who felt a sense of purpose at work had a 12% higher sense of community.” This fact shows that for team building and work engagement efforts to be effective, employees must also feel as if they have a purpose within the organization.

A work anniversary designates a time for yearly “progress checks”

Most companies already utilize some type of yearly performance review. Because of this, a work anniversary can be a natural time to check in with the employee. According to multiple employee retention models, a major component of job satisfaction is that the job appropriately meets the employee’s challenge level. A work anniversary can be an opportunity to touch base and allow for open communication on what the employee needs from the company. These “progress checks” can address future work opportunities, challenges, and other workplace factors that might lead to greater job satisfaction. 

A work anniversary can be a time to help employees feel seen and appreciated

Especially in large corporate settings, it is easy for an employee to feel invisible. This feeling becomes especially present between entry-level employees and higher management. Work anniversaries can play an essential role in helping employees see that they are on the company’s mind and that their work is appreciated. 

As you notice employees in this small way, they will begin to feel less like one of many and more like a critical player in the organization’s success. It also will demonstrate to your employees that you value their loyalty in working through the inevitable difficult days to remain dedicated to the company. 

Work anniversaries are a time to show appreciation

A work anniversary helps someone feel like the company knows them and can also be a time to express gratitude. Recognizing employee anniversaries is a chance to show you appreciate the specifics of what they bring to the workplace. 

A genuine work anniversary message can boost their confidence and build connections with their teams and company. Things you can point out to show appreciation to your colleague or employee to honor their work anniversary:

• Share a memory you enjoyed during the last year.
• Celebrate a project they completed since the last anniversary.
• Show gratitude for their contributions, not only work-based but also in building a positive company culture.
• Share positive customer feedback.

Why Celebrating a Work Anniversary is Important 

We’ve established why work anniversaries are an important part of the corporate landscape, but for them to be truly beneficial, you must celebrate them. Below are reasons why you should go above acknowledging a work anniversary and find a way to celebrate your employees.

Celebrating a work anniversary creates a positive and friendly company culture

Emphasizing recognizing the big and little things in your employees’ lives will strengthen the company culture. A key component of company culture is the atmosphere and attitudes of the work environment. Because the company culture shapes everything the organization does, it becomes vital to encourage a healthy culture. 

Read more: Everything You Need to Know About a Healthy Company Culture.

Honoring employee milestones like a work anniversary is a small but meaningful way to foster a positive work environment. A work anniversary is a universal milestone that any employee can celebrate. Because of this, it becomes a chance to celebrate all employees, no matter their measured success. As you celebrate employees’ small wins, they will be encouraged and, therefore, more engaged. 

A work anniversary celebration improves employee retention

While every company will experience employee turnover due to unavoidable factors, like moving, the goal of an organization is to limit voluntary turnover factors. According to The Great Resignation Report, 21% of surveyed employees said they quit due to feeling unappreciated. Additionally, the Work Institute reports that “over one-third of newly hired employees quit within their first year.”  

These statistics demonstrate that one of the best ways to avoid employee turnover is to show genuine interest in employees and their development. This can be accomplished by actively instituting workplace appreciation programs. 

According to the Reward and Employee Benefits Association, “receiving a piece of recognition has a positive impact of about four weeks on an employee perspective of their company.” The four-week impact described is the result of one piece of recognition. One can infer that the effect on their perspective will be even more significant by doing something bigger, like a work anniversary celebration. 

Read More: Employee Retention Goals

A positive company culture improves customer opinion

Simply put, a happier employee leads to greater customer satisfaction. A happier individual will be more supportive of company goals and, therefore, more willing to go above and beyond for the customer.

Because celebrating work anniversaries can strengthen teams and build a culture of appreciation, there will be greater job satisfaction. Greater satisfaction leads to more business opportunities. Whether through customer service, sales, or greater productivity, your organization will see a boost in positive customer interactions. 

Celebrating a work anniversary can strengthen teams

As colleagues spend the time to honor the milestones in each other’s lives, they will naturally build connections with one another. These celebrations allow colleagues to start discussions, find commonalities, and reduce misunderstandings. Therefore, celebrating work anniversaries will build a stronger team as employees feel understood and appreciated.

Tips on Implementing a Work Anniversary Program

• Establish a workplace appreciation program: Celebrating a work anniversary is a great opportunity to spread gratitude in the workplace. However, without other workplace appreciation efforts, it can feel as if the company only values tenure. 
• Establish a work anniversary program: One way to make celebrations go on autopilot is to create a program. Assign someone or a committee to establish how they will celebrate gifts and any other policies so that something is already set and ready to implement when the time comes. 
• Keep track of everyone’s hire dates on your calendar: It is important to celebrate all employee anniversaries. To make sure you do not miss any employee anniversary, create a calendar that lists the dates. Creating a calendar can be an easy way to set up a reminder when a work anniversary is approaching.
• Put it in the Budget: an excellent anniversary program doesn’t need to cost much money. However, as business needs change, it becomes easier to maintain if you already incorporate these celebrations into your budget.
• Ensure all celebrations are equitable: The last thing you want to do is unintentionally show favoritism because it contradicts your intention for starting a workplace celebration.  
• Involve the whole company:Try to get everyone involved. You can accomplish this through a group work anniversary card, a company-wide activity, or a party. Whatever it is, getting everyone involved will help build connections between colleagues. 
• Personalize the celebration: Make sure your celebration is personalized to the individual. For someone more reserved, the celebration should mirror that, whereas extraverted people will appreciate an activity that involves more. Adapting the activity and gift to the person’s interest will make the event more personal. 
• Consider doing things differently based on tenure: While it may seem contrary to tip number five, consider varying the celebration based on years with the company. A work anniversary should reward dedication to the company, and therefore, there should be a slightly more elaborate gift for those reaching 10+ years. There is equity as long as everyone gets a similar celebration when reaching that year mark.

Work Anniversaries are Important to the Overall Company Experience

As more and more companies are focusing on better supporting their employees, they are finding that establishing a workplace recognition program is necessary to improve the overall employee experience. While there are many ways to implement recognition programs, celebrating a work anniversary directly impacts an employee’s perception of the company.  

As your company focuses on celebrating one another’s wins, be it big or small, you will see happier and more productive employees.