Introduction
Corporate gift giving is an important strategy that many companies use to boost employee morale, show appreciation, and build culture. Giving thoughtful gifts to employees serves several key purposes that provide value to both the employee and the company.
While the reasons to give corporate gifts may seem straightforward, there are some important considerations companies should keep in mind when implementing a corporate gift strategy. The goal should be to maximize the impact while avoiding potential pitfalls.
This article provides an overview of the key benefits companies can gain from corporate gifting, along with guidance on how to execute it effectively. A thoughtful corporate gifting program requires understanding both what motivates employees as well as how to align gifting with the company’s culture and values.
Employee Morale
Giving corporate gifts to employees can be an effective way to boost employee morale. When employees receive gifts, it makes them feel valued and appreciated for their work. This serves as a morale booster and incentive to continue working hard. The gifts act as a reward for employees’ efforts and contributions to the company.
Research has shown that employee morale is closely tied to productivity and job satisfaction. Employees with high morale are more engaged, motivated, and committed to performing well. Gifts are a simple way for companies to positively reinforce good work and show employees that their efforts are noticed and meaningful. Even small token gifts like movie tickets, gift cards, or food treats can brighten an employee’s day and make them feel happier about coming to work.
Gestures of appreciation through gifts can go a long way in making employees feel recognized and cared for. Higher morale often translates to higher retention rates, less absenteeism, and a more positive and energetic office culture. Companies invest in corporate gifts not just as a perk, but as a strategic way to boost morale, motivation, and productivity within their workforce. The return on that investment comes in the form of dedicated, high-performing employees.
Recognition of Employee
Giving corporate gifts is an excellent way for companies to recognize employees’ achievements and milestones. When employees hit major career milestones, receive promotions, or accomplish exceptional work, gifts can serve as a formal acknowledgment of their efforts. A well-chosen gift shows the employee that their contributions are valued. This recognition helps boost morale, engagement, and loyalty.
Personalized gifts like engraved items, plaques, or photo books celebrating an employee’s achievement have a deeper impact than generic rewards. The act of customizing a gift shows thoughtfulness and care from the company. Gifts recognizing tenure like 5, 10, 15+ year anniversaries also remind employees how their dedication matters over the long-term. Even small gestures like gift cards or treats on work anniversaries make employees feel appreciated.
Overall, recognition drives productivity. Employees who feel consistently recognized through gifts and other rewards are motivated to continue achieving success. The positive reinforcement of gifts outshines one-time bonuses by providing lasting appreciation. Simple practices of acknowledging employee milestones and wins through corporate gifts can significantly impact workplace culture and loyalty.
Loyalty of Employees
Corporate gifts can help build loyalty between employees and the company. When employees feel valued and appreciated, they are more likely to feel invested in the company long-term. Receiving gifts for milestones or holidays reminds employees that the company cares about them as individuals, not just workers. This boosts morale and makes employees feel more loyal.
Retaining talented employees is crucial for companies to maintain productivity and reduce turnover costs. Providing gifts shows the company is willing to invest in its people, signaling that there is potential for career growth and development. Employees who feel their work is meaningful and recognized are more engaged. They become advocates for the company who bring passion to their roles. With stronger bonds to the organization, employees are less likely to leave for another job. Corporate gifts that make them feel special deepen that loyalty.
Gifts also represent a company’s culture and values. When employees feel aligned with those values, loyalty forms more naturally. Thoughtful gifts that resonate on a personal level strengthen that cultural connection. They remind employees that the company shares their priorities and appreciates their contributions. This unity of purpose fosters deeper loyalty.
In summary, corporate gifts that make employees feel valued boost loyalty and retention. They show the company’s willingness to invest in its people for the long-term. Gifts that align with company values also unite employees behind a shared purpose. Thoughtful corporate gifts lead to engaged, invested employees who feel motivated to build their careers with the company.
Company Culture
Company culture is a critical component of any successful business. Providing employees with corporate gifts can help reinforce a company’s values and strengthen its culture.
Gifting branded items like shirts, mugs, or bags allows employees to publicly display their pride in the organization. It visually identifies them as part of the company culture and community. These types of gifts act as “walking billboards” that promote the brand wherever employees take them.
Gifts given during the holidays or for achievements can emphasize company values like appreciation, recognition, inclusiveness, or teamwork. Even small gifts like gift cards show that the company values its employees and wants to create goodwill.
Companies that give unique, carefully selected gifts tend to have stronger cultures. Employees feel recognized as individuals, not just workers. A well-chosen gift says “we know who you are and what you like.” It shows the company pays attention to personal details.
Gifts given for tenure or retirements reinforce loyalty, hard work, perseverance, and other cultural pillars. They demonstrate that the company wants to retain good employees over the long-term.
Overall, corporate gifting done thoughtfully helps unite employees around shared values and ideals. It brings people together and gives them a sense of belonging to something bigger than themselves. Gifts make the culture tangible.
Special Occasions
Giving corporate gifts for special occasions is a great way to show employees that the company cares about their lives outside of work. Holidays like Christmas, Hanukkah, and New Years are popular times for companies to provide gifts to their staff. These may include holiday-themed items like ornaments, candles, or baked goods. Gifts given around major holidays make employees feel festive and appreciated during times when people traditionally spend time with family.
Birthdays are another special occasion when corporate gifts are commonly given. Birthday gifts may include gift cards, flowers, balloons, or treats. Recognizing employee birthdays shows that the company values individuals and wants to celebrate each person. Weddings are a big life event that companies may acknowledge through corporate gifts. Newly married employees often appreciate gifts like household items, gift cards, or sentimental keepsakes. Giving a gift for major life events demonstrates care for employees as whole people, not just workers. Overall, corporate gifts for special occasions make employees feel recognized as individuals with lives outside of their jobs. This boosts loyalty, morale, and the sense of community at a company.
Branding
Giving employees branded corporate gifts is an effective form of marketing and brand awareness. When employees regularly use or display items with the company logo, such as apparel, drinkware, or tech accessories, it reinforces the brand image on a continual basis. It serves as a walking advertisement as employees wear or use these items out in public. Branded corporate gifts essentially turn employees into brand ambassadors.
The more employees receive useful branded items they genuinely appreciate, the more likely they are to speak positively about their company. These types of corporate gifts can foster brand loyalty among employees. They also help unify staff under a collective brand identity. Cohesively sharing the brand message strengthens the company image.
Branded corporate gifts also provide exposure to an employee’s friends, family and contacts. When employees use these items in their daily lives, the branding reaches new audiences. The gifting of branded merchandise is like media placement, disseminating the brand far beyond just employees. It’s an efficient way to expand brand awareness and increase visibility.
Tax Benefits
Giving corporate gifts to employees can provide tax benefits for companies. Certain business gifts are tax deductible up to $25 per recipient per year. This tax deduction allows companies to write off gifts given to employees as business expenses.
The key factors for gifts to qualify as deductible business expenses are:
- The gift cost is less than $25 per person per year. If the gift exceeds $25, the full value does not qualify for the deduction.
- The gift is not cash or a cash equivalent like a gift card. The deduction applies to tangible personal property.
- The gift is an ordinary business expense, not an entertainment expense. For example, a holiday turkey given to all employees would qualify, but tickets to a sporting event would not.
- The company maintains adequate records documenting the business purpose, date, and recipients of the gifts.
While the tax deduction per employee is small, the savings can add up for larger companies gifting hundreds or thousands of employees. The deduction provides a nice extra incentive for companies looking to boost employee morale and appreciation through corporate gift giving. Companies should be sure to follow the deduction rules and keep good records to take full advantage of the tax benefits.
Considerations
When providing corporate gifts, companies should consider several factors:
Budget
- What is the budget for corporate gifts? This will determine how lavish or simple the gifts can be. Go overboard and it eats into profits. Go too cheap and employees may not feel valued. Strike the right balance based on what’s affordable.
Fairness
- Corporate gifts should be distributed fairly to avoid any perceptions of favoritism. Offer the same gifts to all employees of the same level to prevent jealousy or complaints. Exceptions can be made for outstanding performers.
Preferences
- Consider employee preferences and profiles. Food gifts may not work for those with allergies or dietary restrictions. Some may prefer practical gifts while others enjoy luxuries. Try to personalize gifts when possible or provide options.
- Also, consider cultural preferences. Make sure gifts do not go against any religious or cultural beliefs. Some may not appreciate alcohol while others expect it.
- Finally, think about what people actually want and can use. Generic, unwanted gifts may do more harm than good. Survey employees or get to know their interests.
Conclusion
Corporate gift giving is an important part of building company culture and showing appreciation to employees. Though it takes thoughtfulness and care, the benefits make it worthwhile.
Giving gifts shows employees they are valued. It boosts morale, increases loyalty, and strengthens company culture. Unique, customized gifts that align with company branding make the biggest impact.
Companies that want to get the most out of corporate gifting should consider their budget, brand image, employee preferences, and occasion. With the right approach, gifts can create many intangible benefits.
Thoughtful gifts given at the right moments remind employees their work is meaningful. This generates goodwill that pays dividends to a company’s bottom line. The return on investment makes corporate gifting an essential practice for engaged, productive teams.