The Positive Impact of Gifts on Employee Engagement

There’s a familiar saying that I just made up: Happy employees, happy business. 

It’s stating the obvious to declare that employees who are recognized for their hard work are more engaged and therefore more productive, which pays off for your company. Back in 2019 B.P. (Before the Pandemic), more than 50% of U.S. workers sought new jobs, leaving their current one in less than a year. Fast forward to today and employee burnout is on the rise at a time when they’re needed most. 

You’d be surprised how a small gesture like a gift can make a big difference. In our last blog post, we discussed why client gifts are good for business, and today, we’re going to examine the impact they have on your employees. 

It Boosts Productivity

Perhaps “Show me the money” needs to be modified to “Show me the gift basket.”

Gifts are preferable over bonuses. What now? Isn’t the adage “Money talks and that other stuff walks”? 

Not so. Companies spend upwards of $77 billion annually on employee incentives, but a study by American Economic Review determined that giving a gift to employees increased productivity more than a cash reward. In fact, a gift of equal value boosted their performance by an average of 25%.

As one of the study’s authors said:

“Surprising employees from time to time with tokens of appreciation can enhance morale.”

It Shows Employees That They Are Valued

Speaking of stating the obvious, high employee morale works wonders for businesses. Happy employees are invaluable to the working environment, productivity, and future success of your business. A gift of appreciation shows your employees how much they’re valued.  

Even if employee morale is high, don’t rest on your laurels. Engaged and productive employees deserve ongoing recognition, and what business owner doesn’t want their company to operate even more efficiently? 

Meaningful Gifts Make a Difference

As we’ve previously written, figuring out the right gift can be a stressful pursuit. It won’t be if you lean into meaningful gifts. What does that mean? It’s going beyond the holiday season and considering other occasions and circumstances like:

Milestones – Gifts for achievements, such as fulfilling a performance goal like meeting or exceeding a sales quota.

Family Events – Why limit gifts to clients whose family member has a birthday, wedding, or anniversary? Show your employees’ families some love, too. 

Team Achievements – There’s no “I” in team but there is in “gift.” Since the whole is greater than the sum of its parts, celebrating team accomplishments puts an emphasis on team culture and camaraderie. Highly functioning teams move your business forward. 

Running a business requires a lot of intestinal fortitude and can be very overwhelming, which is why investing in your employees’ satisfaction is key. With a little planning around gift-giving, you can see a big bump in engagement and positive outcomes for your company. 

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