Employees are the greatest asset for any business. They are the face of the company when interacting with customers and the driving force for any business growth.
That’s why businesses should always thrive to keep employees happy, and this can start with the simple act of corporate gifting to thank them for their hard work.
As of 2022, the total value of the corporate gifting market in the United States is estimated to reach $242 billion as driven by the need to connect with remote workers during the pandemic.
However, the value of a gift is not just letting employees know you appreciate them; there is more to it that makes corporate gifting a popular choice for businesses.
What are the benefits of corporate gifting?
1. Fulfilling the need for recognition
Giving your employees an appreciation gift is a genuine way to show gratitude and thanks to your team for their service and contribution.
Feeling valued at work raises more than just a good feeling for your employees.
It has a significant correlation to fulfillment as Maslow’s hierarchy of needs explains that people need respect and appreciation to feel job satisfaction.
Many companies default to salary increments or promotions to help employees feel valued and stay. But unfortunately, it’s never about the money.
Despite most companies practicing better pay and increments, 79% of people still quit their job because of a lack of appreciation.
2. Drive employee productivity and boost morale
Meaningful recognition should be timely. Presenting your employees with gifts regularly can help you keep the team motivated and engaged throughout the year.
It doesn’t always have to be something lavish, but giving your employees something like a tea break pack or cup of coffee can easily make your employee day!
It shows your employees that you recognize their effort and thank them for being a part of your company, which can be a powerful motivation.
Most importantly, you’re no longer holding your employee appreciation off till the end of the year.
In the long run, this can build an employee’s sense of belonging, boost morale, and drive them to work harder for your company.
3. Improve employee-business relationships
People love receiving gifts, and your employees are no exception. Giving a meaningful gift can positively affect your employee’s feelings and thoughts toward the company.
It sends a message that you acknowledge your people, and not just for exemplary performance but also for great attitude and work ethics.
You can thank employees for always being punctual or reward team members committed to carrying out quality work.
With gift choices like a branded pen or a quality pair of noise-canceling headphones, it can improve their work performance and loyalty at the same time.
Besides, this can also foster a healthy and professional culture of gift-giving in the workplace that is good for strengthening the relationship between team members.
4. Enhances company reputation and goodwill
Corporate gifts are also essential tools in the marketing communication mix as they create an immediate emotional connection between the business and the gift.
Giving high-quality and memorable gifts can help build your employer’s brand image. An excellent reputation as a great place to work will attract more talent and opportunities.
Besides invoking positive emotions for the recipient, gift-giving can create a validating culture among your workforce.
A team that feels connected and proud of the company will approach their workday and clients with a positive mindset and elevated levels of enthusiasm, which will spread to your clients.
5. Improve employee happiness and retention
Appreciation gifts for employees can be crucial to their happiness and retention. Offering gifts, even small ones, can make someone’s day.
A happy employee who feels valued is more likely to continue working with a company and even recommend the company to friends and family.
Giving gifts also has an endowment effect that enables businesses to endow greater feelings of trust and reciprocity in employees by investing in the relationship.
Gifts vs. incentives
While most businesses talk about gifts and incentives in the same breath, the truth is they offer very different values.
Incentives like awards, holiday trips, or cash rewards are commonly given for achieving a target, such as a sales quota. Rewarding your employees with incentives will motivate and boost their confidence, but it can also be an exchange.
In comparison, gifts are given as tokens of gratitude and are more or less given to everyone. They are presented with no explicit conditions for performance and are solely to reward effort, making it effective in building morale.
Based on a report by Soocial, companies that use non-monetary motivations show a higher increase in productivity by 14%.
That is to say, employee engagement runs much deeper than a yearly pay raise, but how you present your gifts also matters.
The etiquette of corporate gifting
There is etiquette to corporate gifting. To maximize the experience for your employees while advancing the objectives for sending the gifts, here are some tips:
1. Timing – Employee engagement is a year-round effort. Give gifts on holidays like Christmas or Halloween to humanize the business, and other personally important events like birthdays or the birth of a child to tell your employees that you care.
2. Budget – Look for higher ticketed or quality, personalized items instead of everyday objects. People associate a better experience receiving unique gifts with a level of luxury that they ordinarily won’t splurge on themselves.
3. Presentation – How you give the present can also influence recipients’ perception. So wrap your gifts in some fantastic wrapping paper, and spend time composing a handwritten card. This can be as important as the gift since your message will express your appreciation and sincerity.
How to get into corporate gifting: Gift Market
Not sure where to start? What corporate gifts your business chooses can create an association with your brand, and you need the right gift to reap the benefits.
Without a doubt, employing a corporate gift strategy is one of your company’s best investments to build a long-term relationship with your employees.
And at Gift Market, we make sure your investment pays off.
From selecting the perfect gift to packaging and shipping items, our team at Gift Market creates memorable corporate gifts with a personalized and efficient experience.
The gift marketplace has a lot of options to choose from, including practical products like food items or a COVID-19 essential pack to premium branded gifts that your employees will love.
All you need to do is reach out to our gift consultants with your requirements, and we will work to curate a unique gift for your employees.