Tight labor markets can make hiring and staffing challenging for businesses. How can you satisfy clients and remain profitable if you constantly face turnover? Getting top talent to stay can be tricky when larger companies pull out all the stops to poach your best workers. So, what’s the solution? Some businesses have found success through corporate gifting.
Do these gifts improve employee engagement and retention? Here’s what corporate gifting means and how it influences worker decisions.
Is Corporate Gifting What Keeps Employees Around?
Numerous factors influence an employee’s decision to leave a company, including things out of your control, such as family or medical reasons. However, business owners can help their cause by giving corporate gifts to their workers. These tokens of appreciation demonstrate you see their hard work and want to ensure it doesn’t go unnoticed.
Corporate gifts are optional, but employees have increasingly viewed them as mandatory from their bosses. A 2023 Tremendous survey examines what employees want around the holidays, as this is a popular time for bonuses and end-of-the-year prizes. The researchers find 82% of employees believe their employers should give gifts.
What is corporate gifting to an employee? It does wonders for their morale. The same survey finds that 75% of workers experience higher job satisfaction after getting a good gift. The feelings of appreciation last a long time, as 46% say this increase in job satisfaction lasts for over a year.
Improving Employee Engagement and Retention
The holidays present opportunities for gift-giving, but other occasions may call for commemorating milestones with a present. For example, your employee could reach their work anniversary, announce an engagement or earn another college degree. Gifting is the right thing to do — otherwise, the worker may feel slighted or as though their boss doesn’t care.
A 2022 Pew Research survey examines why American workers left their jobs in 2021. The study finds disrespect at work was the third-most common reason for leaving, with 57% of respondents saying it was a major or minor reason for their departure.
Not giving a gift might not be the sole reason they leave, but it could make them feel unappreciated. Therefore, employee engagement decreases, and retention will become a problem for your business. Engagement is low for the average American company, with Gallup reporting only 32% of employees are actively engaged with their work.
What Is the Right Corporate Gifting Approach?
o employees can be challenging, as business owners must decide what they like and would appreciate. Company leaders must also be fair to the other workers and ensure the gifts are roughly the same value to avoid the perception of favoritism. So, what is the right corporate gifting approach?
Experts recommend spending about $100 annually per employee for their gifts. These occasions include holidays like Christmas, personal events like birthdays, and random celebrations like weddings and baby showers. Three gifts annually could mean a $25-$50 gift for each occasion, depending on how you want to split it up.
Deciding what to give employees should include personalization to make them feel worthwhile. For example, you may have heard a colleague discuss their child’s bicycle breaking. Getting a replacement would show you care not just about the worker but also their family and well-being. Research shows that 43% of Americans believe corporate gifts improve relationships, so a personalized present would be an excellent builder.
How Else Do Corporate Gifts Affect a Workplace?
Employee engagement and retention are key performance indicators (KPIs) that business owners track. However, they’re not the only metrics you can improve with corporate gifts. How else can presents affect your company? Here are other areas you can improve with gifts:
- Company culture: Gifts contribute to the company’s culture by fostering positivity and selflessness. Giving presents demonstrates business owners care for their employees and want to see them happy.
- Brand reputation: A company’s reputation is crucial for prospective employees and clients. They’re more likely to work with your business if it has a positive reputation and treats workers well.
- Employee well-being: Employee gifts could be an opportunity to improve their well-being, whether their physical or mental health. For example, a business owner could give spa gift certificates or wearable fitness trackers. Healthy workers are typically more engaged, so these gifts are worthy investments for company leaders.
What Are Suitable Corporate Gift Ideas?
What is the best corporate gifting idea you can implement? Targeting your employees’ wants and needs with thoughtful and practical gifts is essential. Here are a few suggestions for the next time you search for presents:
- Coffee mugs: Coffee is the lifeblood of businesses worldwide, so personalized coffee mugs would be an excellent choice. Gift mugs with their names and favorite designs to personalize them.
- Cooking class: Gifts could be an opportunity for a learning experience, so sign your employees up for cooking classes. They’ll bond as they learn to make tasty cuisine.
- Philanthropy: Do your workers have philanthropy they care about or participate in? Donate to the employees’ favorite charities in their names to demonstrate you value what is closest to their hearts.
What Is Corporate Gifting for the Modern Workplace?
Hiring and retaining top talent is crucial for small and large businesses. Corporate gifting is a common strategy for business owners to increase retention because research shows it makes workers happier. Boosting morale is crucial for engagement and influencing them to stay instead of searching for job opportunities elsewhere.
Jack Shaw, editor of Modded and author of numerous articles on business success and self-improvement, seeks to inspire readers with his practical tips and strategies for growth. His writings can be found on HellaWealth, USCCG and more.
Corporate gifting stock image by Tsuguliev/Shutterstock
