Should I Get My Employees Holiday Gifts?

The question of whether to give holiday gifts to employees is often a matter of personal and professional judgement. While it might seem like a nice idea, there are several factors to consider to ensure the gesture is beneficial and sustainable for your company.

Considering the Company’s Affordability

The primary consideration when thinking about giving employees gifts is whether the company can afford it. Cheap gifts that aren't valued by the recipients can have an adverse impact. Instead of spending on cheap gifts, it might be better to host a party or celebration to commemorate the occasion. This can foster a sense of community and good will without the financial strain.

Is There a Bottom Line Perspective?

From a financial standpoint, it's important to weigh the potential benefits of giving gifts against the company's budget. Special occasions or rewards might be a good reason to give gifts, but consider that a strong corporate culture where employees look forward to coming to work is a much more sustainable motivator. Building a positive work environment is likely to yield significant dividends in terms of employee engagement, retention, and discretionary effort.

Motivation and Personal Values

At the end of the day, the decision to give gifts is also a matter of personal values. Are you a naturally caring and giving person who feels compelled to express gratitude? Only you can answer this question. It's important to be genuine in your intentions and avoid making the gesture feel obligatory.

Gifting Best Practices in the Corporate World

When it comes to gifting employees, there are a few best practices to keep in mind:

Equity: Include all employees of the same 'level' or use some form of categorization. For example, if you're providing gifts to supervisors or the entire team, make sure to include those on paid leave. This helps prevent the perception of favoritism and upholds a culture of fairness and trust. Value Consistency: Give something that is either similar or of approximate value. Slightly different valuations can be acceptable if there is a valid reason, such as personal value or industry norms. Be mindful of the pricing to ensure consistency within the team. Cultural Precedents: Be aware that gifts you give this year may set a precedent for future years. If you plan to distribute gifts based on specific criteria, consider if those criteria should be maintained consistently. For example, if you distribute gifts because you took an overseas trip, you might need to maintain that practice in subsequent years to avoid questions of inconsistency.

Alternative Reward Systems

Instead of gifts, many companies opt for alternative reward systems that can be more cost-effective and sustainable. For example:

Host Events: Organizing activities like bowling, a movie night, or a team meal can be a fun, engaging way to reward employees. These events often require less forethought and are less likely to be seen as preferential. Focus on Culture Building: Invest in building a strong corporate culture that fosters a positive work environment. Employees who are invested in their workplace are more likely to remain engaged and motivated.

Remember, while giving gifts to employees can provide a temporary morale boost, investing in a positive corporate culture is a long-term strategy that can have lasting benefits for both your employees and your business.