Introduction
Corporate gifting refers to companies giving gifts to employees, clients, partners, or other stakeholders. It is a common practice used to show appreciation, boost morale, increase loyalty, incentivize performance, and more. Companies may provide gifts for holidays, birthdays, work anniversaries, or other special occasions. Some common examples include gift cards, food baskets, plaques, electronics, experiences, cash bonuses, and merchandise with the company logo.
There are several reasons why companies choose to engage in corporate gifting for employees. Primarily, it is a way to show appreciation and gratitude for their hard work. Thoughtful gifts help create a positive and motivating work culture where employees feel valued. Gifting can also boost morale, engagement, satisfaction, and retention. It reinforces the employer-employee relationship and socializes workers. Additionally, unique or personalized gifts may help increase brand awareness and loyalty. Ultimately, companies hope that corporate gifting for employees will lead to higher productivity, better performance, and a stronger overall workforce.
The benefits of corporate gifting for employees for companies can include…
- Increased employee happiness, morale, motivation, and engagement
- Higher staff retention rates and lower turnover
- Strengthened company culture, loyalty, and team spirit
- A way to recognize achievements, milestones, and hard work
- Boosted productivity and performance from incentivized employees
- Positive associations with the brand as a great place to work
- PR and marketing value from gifts that bear the company logo
Thoughtful corporate gifting for employees shows that their contributions are valued and appreciated. This fosters good will that pays dividends in engagement, satisfaction, and productivity.
Know Your Employees
Understanding your employees is the most important first step when planning corporate gifting. Consider the demographics, interests, values and preferences of your workforce. An employee gift that resonates with a young tech worker may not excite someone nearing retirement.
If possible, survey employees anonymously about the types of gifts they would appreciate. This allows you to gauge interest in options like gift cards, food, tech gadgets, charitable donations or experiences. Even if you can’t survey all employees, talk to managers and team leaders to get a sense of what motivates different groups.
The goal is to select thoughtful gifts that align with the personalities and values of your staff. Generic, one-size-fits-all gifts may not feel meaningful. Corporate gifting for employees’ input show you care about providing something they truly want or need. With some research into your workforce, you can find ideas they’ll be genuinely excited to receive.
Set a Budget
Determining the right budget is crucial when planning corporate gifts for employees. Companies need to decide on an amount they want to spend per employee, which can vary significantly based on factors like company size, profitability, industry, and geographic location.
When deciding on a budget, it’s important to look at the entire department or company rather than just the cost per gift. For a small team, spending $100 per person may be feasible, but for a company with 500 employees this can add up quickly. Companies need to set an appropriate total budget that provides a meaningful gift within their financial means.
It’s also essential to set a sensible range for gift values. Employee gifts don’t need to be exorbitant, as smaller gifts can also make employees feel valued. Consider a range such as $25 to $100 for smaller companies, or $15 to $50 for larger corporations. Going above $100 per person for a large company may look excessive unless they are very profitable.
Setting a clear budget upfront helps guide the gift selection process. With a defined spending range per employee, companies can focus on choosing thoughtful corporate gifting for employees that aligns with their budget limitations. Taking the time to determine the right budget demonstrates that management has carefully considered the financial impact when appreciating employees.
Choose Gift Type
When selecting corporate gifts for employees, you’ll need to decide what type of gift to give. There are a few key factors to consider:
Cash vs. Non-Cash
- Cash gifts are simple and allow employees to spend as they wish. However, cash can feel impersonal.
- Non-cash gifts show more thoughtfulness. You can select items tailored to employees’ interests. However, you risk guessing wrong on their preferences.
- Consider combining the two – give a gift card along with a small personalized item. This allows some flexibility along with personalization.
Tangible Items vs. Experiences
- Popular tangible gift ideas include food, apparel, tech gadgets, desk accessories, and charity donations made in their name. These are items they can keep as corporate gifts.
- Experience gifts like tickets, restaurant vouchers, or paid time off to create memories. But the experience itself is fleeting.
- Experiential gifts often feel more special, but tangible items may provide more lasting satisfaction.
- You could give both – tangible commemorative items from the experience like photos or souvenirs.
The right mix of cash vs. non-cash and tangible vs. experiential depends on your budget, employees’ interests, and the image you want to convey. The perfect corporate gifting for employees matches the recipient and brings a smile.
Time it Thoughtfully
When selecting the timing of corporate gifting for employees, avoid holiday rushes when stress is high and budgets are tight. While the holidays seem like an obvious gifting occasion, consider spreading out gifting throughout the year to boost morale at other meaningful times.
For example, recognize work anniversaries and milestones by sending gifts on employees’ start dates or anniversaries. This shows you value their loyalty and tenure. Gifting during the summer months can also spark joy during slower seasons.
Personalize gifting cadences based on when your employees could most benefit from a pick-me-up. Get a sense of their preferences by surveying staff and noting when enthusiasm seems low. Spreading gifts across the calendar avoids gift fatigue and makes each present more special.
Personalized gifts enhance corporate gifting for employees
Personalizing employee gifts adds a special touch that makes each person feel valued as an individual. There are a few ways to personalize corporate gifts:
- Add employee names when possible. Having the employee’s name engraved or printed on the gift personalizes it just for them. This could include things like custom notebooks, mugs, desk accessories with their name.
- Customize based on individual preferences. If you know an employee’s hobbies or interests, tailor the gift to match. For example, give a gift card to a cooking supply store for the employee who loves to cook. Or give movie passes to the film buff on your team. Getting a gift specifically suited to their likes makes it extra thoughtful.
- Consider dietary restrictions. If you give food gifts, make sure to provide options for employees with food allergies or dietary restrictions. Having a vegan or gluten-free option shows care and inclusiveness.
- Give a choice of gift options. You could provide a gift selection form or survey and allow employees to choose their preferred gift within a certain budget. Giving them options allows customization.
Taking the time to personalize and customize gifts for each employee adds meaning and delight to a corporate gifting program. Employees will feel genuinely valued when receiving a gift selected just for them.
Consider Tax Implications
Giving gifts to employees can have tax implications that need to be considered. Cash gifts or gift cards are considered taxable income to the employee. The IRS requires employers to include these types of gifts on employees’ W-2 forms as part of their gross income.
Non-cash gifts are generally not taxable to the employee as long as they are below $25 per employee per occasion and not given frequently throughout the year. If non-cash gifts exceed $25, then the amount over $25 is subject to payroll taxes. For example, if an employer gives a $50 restaurant gift card to an employee, $25 of the value would be taxable. The employer would need to add the taxable amount to the employee’s W-2 wages.
It’s important for companies to be aware of these gift tax rules when planning employee gifts and prizes. Keeping gifts under $25 can help avoid extra tax headaches. Consulting a tax professional is recommended to fully understand the implications in your specific situation. With some forethought, companies can provide thoughtful gifts to employees while minimizing negative tax consequences.
Make it Memorable
Giving corporate gifts to employees is a great opportunity to show appreciation in a memorable way. Focus on presenting gifts creatively and thoughtfully for maximum excitement and impact.
- Present gifts creatively for excitement – Rather than just handing employees a wrapped gift or gift card, make the presentation special. Have their gift at their desk wrapped beautifully or arrange a fun reveal at a team event. Getting creative with the delivery and unwrapping makes receiving the gift more thrilling.
- Include thoughtful notes or perks – Include a handwritten thank you note or attach a note with words of encouragement. Consider adding extra perks like allowing casual dress on a certain day, an extra day off, or bringing in a special treat for the team. These personal touches make the gift more meaningful.
- Build anticipation – Corporate gifting for employees on birthdays or work anniversaries, build up excitement by letting them know to expect something special on the day. A little anticipation helps make it more memorable when they receive the surprise.
Thoughtful presentation and personal touches help elevate a corporate gift from transactional to memorable. With creativity and customization, companies can make gift-giving a heartfelt experience employees won’t forget.
Measure Success
Measuring the success of a corporate gifting program is crucial to determine if it’s having the desired effect on employees. There are a few key ways to track success:
Survey employees on satisfaction
Send out anonymous surveys to employees asking about their satisfaction with the gifts. Get feedback on what gifts they liked most or least. Ask if the gifts made them feel more valued and appreciated. Anonymous surveys encourage honest opinions.
Track effects on morale and retention
Look at metrics over time after implementing a gifting program to see if it improved morale or retention. Morale can be measured through engagement surveys. Retention can be tracked by analyzing employee turnover rates. If both improve, the gifting program may have contributed.
Gauging employee satisfaction and monitoring the impact on organizational metrics helps determine the ROI of corporate gifting. Adjust the program as needed based on feedback and data. A successful gifting strategy boosts employee happiness, loyalty and productivity.