Stats that prove employee gifts are always worth it

JUNE 5, 2020

Employee gifts are always a good idea: 3 stats to prove

When done right, employee gifting can have a huge impact on retention, morale, and company culture. In a time when working from home is becoming the norm, a good internal gifting strategy is more important than ever.

Most businesses don't have a gifting strategy in place for clients, let alone for their employees. If there is an internal gifting budget, it's often tiny and the first one to get cut.

The fact is, businesses completely underestimate how impactful employee gifts can be - and hardly ever consider that in the long run, this practice can actually save them money and headaches.

Let's look are 3 reasons why employee gifting is always a good idea.

1. 69% of employees say they would work harder if their efforts were better appreciated.

(source: tinypulse)


It's human nature to crave recognition, so it should come as no surprise that this desire for approval extends to the workplace. Nothing demotivates or disengages employees quite like a lack of acknowledgement towards their efforts.

Thoughtful and timely gifts are an excellent way to recognize employees for their achievements and "above and beyond" moments. Knowing that their company put time and money (it doesn't have to be a ton of money, either!) into acknowledging them can make the it feel even more meaningful.

Sending gifts for personal milestones can go long way in help-ing employees feel seen as people, not just numbers.

2. 66% of employees would quit a job if they felt under-appreciated. That jumps to 76% for millennials.


It's a pretty well-known fact that money isn't the only thing that causes employees to quit - in fact, it's often not even in the top 3 reasons that employees leave. Turnover is more likely to be attributed to poor management, a toxic workplace culture, and - you guessed it - a perceived lack of appreciation.  

Gifts don't have to be used only for recognizing specific achievements; feeling "appreciated" can - and should - extend to a larger meaning. Sending a gift to acknowledge personal hardships (loss, illness) or celebrations (marriage, new baby) can go an exceptionally long way in helping employees feel seen as people, not just numbers.

3. On average, it costs about 33% of an employee's average salary to replace them.


All too often I see employers hem and haw over the idea of employee gifts, saying that it feels like an unnecessary and frivolous expense. But when you consider just how much employees value recognition, and combine that with how expensive employee turnover is . . . suddenly, that expense doesn't seem frivolous at all.

At the end of the day, gifts can't make up for a toxic culture or bad management. They can't be businesses only effort to motivate their employees. But, when used thoughtfully and strategically, gifts can have a huge impact on morale and retention - which ends up paying for itself and then some.

Written by Kyla Brennan

Kyla is the founder of Rare Assembly. Previously, she founded a multimillion dollar marketing firm that she ran for 8 years, including after its acquisition by The New York Times in 2016. During that time, she worked with hundreds of the world's best brands and saw firsthand just how far a good gift can go in the business world.


Let's up your gifting game

We spend a lot of time writing informative (vs. promotional) emails with a singular goal in mind: help you win more business and strengthen your client & employee relationships through gifting.

Thank you!

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