In many companies, giving gifts to employees is a tradition that some managers see as a dispensable cost. However, a growing number of voices argue that these corporate gifts are an investment in employee morale, organizational culture, and loyalty. Which side of the debate is the truth?
The Corporate Dilemma of Employee Gifts
Every year-end or on special occasions, organizations face the dilemma: is it worth allocating budget to holiday baskets, special bonuses, or complimentary items for employees? In times of budget cuts, these gestures of appreciation are often the first to be targeted. The traditional, more economic-focused view often categorizes employee gifts as an unnecessary expense. From this perspective, if a gift doesn’t generate direct revenue or reduce immediate costs, its financial viability is questioned.
However, a more comprehensive and modern view of business management suggests the opposite. Companies don’t just operate with balance sheets; they also operate with people. This is where the perspectives of neuroeconomics and behavioral economics come in: emotional factors such as motivation, a sense of belonging, and job satisfaction influence productivity and, ultimately, financial results. An employee who receives tangible recognition from their company—however small—feels that their effort is valued. And that perception can translate into a greater commitment to their work, something difficult to quantify in the short term but invaluable in the long run.
Impact on Organizational Culture
Far from being trivial acts, gifts to staff contribute to shaping corporate culture. What does a company communicate when it sends a gift to its employees for their birthday, Christmas, or upon reaching a goal? First and foremost, it conveys appreciation and recognition. International studies support this idea: more than half of employees perceive that celebrations and gestures of appreciation reflect and strengthen their company’s culture.
This means that an organization that integrates gifts and recognition into its routine is building an environment where gratitude and valuing its staff are part of its core values.
This culture of recognition has tangible effects on the work environment. When staff feel that the company genuinely cares about their well-being and happiness, their sense of belonging improves. In fact, a study by the International Labour Organization (ILO) concludes that personalized recognition reinforces precisely this sense of belonging and employee loyalty.
In other words, a corporate gift is not just an object: it’s a message. It communicates that beyond the goals and figures, the company recognizes the individual, celebrates their achievements, and is pleased to have them as part of the team. This philosophy is contagious and shapes the organization’s collective identity, creating a more positive, cohesive, and motivating internal culture.
Loyalty and loyalty: giving gifts to retain employees?
Employee turnover is a constant headache for many companies. Losing talent involves recruitment costs, training time, and often a temporary drop in productivity. In this context, employee retention has become a strategic priority, and gifts play a more important role than it seems. Various surveys reveal that employees who feel recognized and valued tend to stay. For example, an opinion poll conducted by SurveyMonkey found that 63% of employees who receive recognition are unlikely to look for a new job.
Corporate programs that include regular recognition (whether in the form of awards, performance gifts, birthday presents, or even public acknowledgments) significantly reduce talent drain and, consequently, the costs associated with new hires.
Why do these gestures generate loyalty? The answer is emotional. A gift or incentive not only provides momentary material satisfaction but also creates a psychological bond. The employee feels that the company goes beyond a mere exchange of labor (work for a salary) and rewards their dedication with affection. This emotional connection builds loyalty: the employee no longer works solely for the paycheck, but also out of commitment to those who value them.
A boost to motivation and productivity
It’s no coincidence that the companies most highly valued by their employees are often also among the most productive. The human factor matters. A motivated employee is more productive, and gifts to staff can be catalysts for that motivation.
How can this leap in performance be explained? An employee who feels valued is usually more productive.
