Companies that replaced the gold watch with a gift catalog learned that people pick the most practical item every time.

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An award for thirty years of service in an era when median tenure is four years measures the company more than the person. A retirement and a long service award often land in the same month and the medal is the smaller story. Length-of-service awards over $400 are taxable to the employee and most recipients find out in January. Service award ceremonies are usually tacked onto the annual meeting because nobody will attend a separate one. Offering a charity donation instead of a service pin splits recipients in a way the award committee never expects. A twenty-five year pin is a small item that some people keep in a drawer and others wear every day. A service pin handed over by a manager who started last month undercuts the whole point. Some employers now give service awards as extra vacation days and the people who take them are the ones who stay. A service award that arrives by mail after the anniversary has passed lands as an afterthought. Why a cash bonus lands worse than one specific thank-you note