Research reveals that in Ireland, 91% of organisations are facing a skills shortage, with 37% of respondents reporting a staff turnover rate of 10-19%. To combat this, it is estimated that around two thirds of employers operate long service awards or initiatives. If you’re thinking of implementing a long service award or want to give your existing program an overhaul, our complete guide to long service awards has everything you need to know.
Your industry
One of the first things to consider is the sector you’re in, as staff turnover and skills shortages can vary hugely based on your industry. CIPD’s 2024 Ireland report found that the public sector had the highest level of skills shortages (47%) followed by not for profit (37%) and the private sector (31%). Meanwhile, Central Statistics Office data for Ireland for 2024 found that the highest job turnover rate was in the administrative and support service sector (26.6%) followed by hospitality (21.1%). At the opposite end of the scale, information and communication had the lowest turnover rate (6.3%) followed by financial services (7.3%). Knowing the standard for your industry can help you to determine if your retention rates are consistent with averages for your industry.
Decide on the right long service award length
Traditional long service milestones range from 5 to 40 years but many employers are beginning to acknowledge earlier milestones too. In Ireland, OECD data reveals that the average tenure for Irish employees was 9.38 years in 2024, down from 10.18 in 2015, but this can vary by sector. For example, the most common tenure in hospitality is between 2-5 years. Information from your sector on average tenures can help you to select the most appropriate length of service to award your team.
Calculate the cost of turnover
One of the main reasons an organisation may not have a long service initiative is the cost of implementing and operating it. Perhaps more useful though is calculating the cost of not operating one. A CIPD report found that just 17% of organisations calculate the cost of labour turnover, including training someone new, the loss of in-demand or specialist skills, and the detrimental impact on client or customer relationships.
Evaluate your long service award options
Gone are the days when a gold carriage clock was presented as the ultimate long service award, today’s employees are looking for something a little more accessible. It’s often useful to ask your team what they’d like to receive as a long service award, such as a tangible gift, a cash reward paid as part of their salary or a non-cash reward. One of the most popular non-cash rewards for employees is a Gift Card. Town & City Gift Cards have the benefit of being available for towns and cities right across the UK, and redeemable with the big brands they know, and the local businesses they love.
Understand the tax implications
The Irish Revenue suggests that organisations can offer awards to their employees tax free where it meets the conditions of the Small Benefit Exemption. The Small Benefit Exemption allows Irish employers to give employees up to five small non-cash benefits each year, as long as the benefits don’t exceed €1,500 in total. In addition, Irish employers can mark long service to employees with 20 or more years of service tax-free, as long as the award is a tangible item (not vouchers, bonds or cash), the award cost is $50 or less for each year of service and no similar award has been given to the employee within the last five years.
Communicate your new awards
With your long service awards ready to go, it’s time to let your team know they’re up and running, how many years’ service are being awarded, what the award will be and any processes. For example, are they awarded automatically and how will employees receive their award, perhaps by way of an event, ceremony or simply a meeting with their manager? And, as employees start to receive their rewards, don’t forget to communicate their achievements on your company social media, company newsletters and more, positively contributing to company culture.
Evaluate your offering
After the time that has gone into developing or refining your long service award, it’s useful to take stock of its impact. This can be through a boost to staff retention, and also through feedback from your staff on the initiative, helping you to continue to tweak and improve your long service awards.