Your Guide to Employee Appreciation Gifts

A gift is the perfect way to show your employees that you notice them, care about them, and value their contributions. Employees who receive meaningful gifts are more motivated and productive and enjoy a higher morale at work. This proves the old adage: When you put good in, you get good out.

Dive into this gifting guide to learn more about gifts, why they’re important, and how you can implement the best gift-giving practices at your organization.

Why Do We Give Gifts?

Gifts have been a part of human culture for generations, dating back almost to the beginning of humanity itself. The act of giving gifts has become an important part of our social traditions, and it’s even developed into a common love language.

The History of Gift Giving

Why do we give gifts? Why is this social exchange hardwired into our very nature, and why are gifts valued to show love, appreciation, or thanks? 

Primitive cultures used gifts as part of social rituals, specifically to strengthen connections and celebrate important events in the community. 

In Ancient Egypt, gifts played an essential role in religious and life ceremonies and diplomatic partnerships. Ancient Rome started gift-giving traditions as well. During Saturnalia, the Romans decorated their homes and gave one another gifts. 

Nowadays, every culture on the earth has different traditions of gift giving. Whether it’s cash in a red envelope during Chinese New Year, sweets during India’s Diwali festival, or gifts for every person at a birthday party in Russia, humans love giving and receiving gifts.

The Psychology Behind Gift Giving

There are a few reasons gifts are universally fundamental to humans all over the world. Some of these psychological reasons may not even register in our minds as we gift things, but they’ve all done their part in cementing the gift-giving tradition into our cultures:

• Start, build, or reinforce relationships. We give gifts to those we care about to build our relationship with them. Whether that’s a romantic gift to a significant other or a birthday gift to a sibling, we want to show them we care and we want confirmation that they care.

• Show appreciation. Underlying every aspect of gift giving is appreciation. Humans give gifts to show others that we value them and the role they play in our lives.

• Offer symbolic communication. Everyone has heard that “it’s the thought that counts,” right? That has a deeper psychological meaning. When you get a perfect personalized gift, the giver shows that they think about you and care about you (this is a big one for employee gifts!). Gifts that are obligation-inspired feel fake, impersonal, or uncaring, which communicates a whole lot.

As for brain chemistry, giving the right gift releases oxytocin, serotonin, and dopamine. These three hormones help you feel warm, fuzzy, happy, and euphoric and instinctively make you want to give more gifts.

The Power of Recognition: Importance of Employee Appreciation Gifts

In a world of high turnover, high stress, and frequent burnout, appreciation can be the key to avoiding or reducing these negative outcomes. Let’s look at some stats:

• Team members who are well-recognized at work are 45% less likely to leave their jobs after two years. 
• Those who receive workplace recognition that meets four of five pillars (listed below) are nine times more likely to be engaged. Even meeting one of these pillars makes one 2.9 times more likely to be engaged.

1. Fulfilling the workforce’s recognition expectations 
2. Authentic
3. Personalized 
4. Equitable
5. Embedded in an organization’s culture 

• Employees are roughly three times more likely to agree they feel loyal to a company that prioritizes recognition in its culture. 
• Recognition plays a huge role in one’s career growth at their employer. Gallup notes that those who receive “authentic” recognition are 5.2 times more likely to see a clear developmental growth path in their roles. 

When employees feel like you (as the company) care about them, they’re more likely to stay than if they had a better salary.

The important thing to remember is that it’s the thought that counts. Gifts don’t have to be expensive, grand, or flashy to provide these benefits. The only requirement for a good gift is thoughtfulness, not a high price tag.

• Gifting tip: Awardco helps you provide customized gifts and rewards to all your employees, allowing them to choose the gift that means the most to them and saving you time.

Thoughtful gifts are a great way to show appreciation, convey value, and simply make employees more happy. On the other hand, thoughtless or generic gifts can do the opposite.

Why Thoughtless Gifts Can Do More Harm Than Good

Research shows 56% of employees say the gifts they receive from their employers are impersonal. Think about company-branded swag, one-size-fits-all items, or things employees simply don’t want. These gifts actually make employees feel underappreciated and uncared for.

When Is the Best Time for Employee Gifts?

Recognition is always a good thing, no matter what time of year, month, week, or day. But we’re talking about employee gifts here. When is the best time to buy a gift to give to your employee?

(Pro tip: Awardco lets you recognize every day of the year AND provides points that employees can use to buy a gift they actually love.) 

Here are a few holidays and celebrations that you can consider.

1. Valentine’s Day - February 14th

While this holiday is traditionally a romantic one, it’s also a great time to show how much you value your relationship with your employees. Small gifts of chocolates, flowers, or gift cards to spas or salons are good ways to pamper your employees while showing them you care.

2. Employee Appreciation Day - First Friday in March

Every year, you have an opportunity to appreciate your employees without holding back. The first Friday in March is employee appreciation day, and this is the perfect time for you to provide meaningful gifts to your workforce. 

3. World Health Day - April 7th

Physical and mental wellness are becoming more and more of a focus for employees. Why not show them that you care about their well-being with a nice health-related gift? Workout equipment, ergonomic office equipment, or even an all-expense-paid dinner at a fancy (and healthy) restaurant are great ways to show your appreciation.

For a more specific holiday, National Employee Health and Fitness Day is the third Wednesday of May. Take your pick and celebrate the health of your employees!

4. International Friendship Day - July 30th

Friends make work so much better, and hopefully your office culture cultivates and strengthens bonds of friendship. To improve that, why not give employees gifts to show that you value their friendship and their dedication? 

5. Labor Day - September 3rd

This holiday is all about celebrating the importance of laborers in our world—in other words, celebrating employees! Instead of just one day off, you could give the gift of an extra day of PTO to make this holiday even more special.

6. Standard Holidays - October Through December

Whether you want to give gifts at Halloween, Thanksgiving, Christmas, Boxing Day, Hanukkah, New Year’s, or Kwanzaa, the holiday season is arguably the best time to give meaningful gifts to your employees. Spread the joy of the season with thoughtful, personalized gifts that show how much you care about each person individually.

7. Service Awards and Birthdays

Besides holidays, you should always provide a gift for employee birthdays and work anniversaries. These celebrations, even more than regular holidays, allow you to personalize the gift to each employee. Find out what each person needs, likes, and is interested in, and give them a gift that hits the right spot.

‍How Do You Give Employees Gifts Effectively?

This may not be a question you’ve considered before, but many managers, executives, and HR leaders may not know what the best way to give gifts is. 

Do you leave a wrapped box on each person’s desk? Provide a bunch of prizes in a raffle at a company party? Bring everyone up to the front of a meeting to present the gift? You have a lot of options.

The main thing to keep in mind is that employees want gifts that mean something to them, and that includes the way they get them. 

Is an impersonal bag on a desk going to send the right message? Is embarrassing a shy employee in front of the company going to leave a sour taste in their mouth?

Make the actual gift giving as personal as you can. Include a hand-written card explaining what each employee means to the company. Have managers personally deliver the gifts to their direct reports. And always (ALWAYS) make the gift itself something the employee wants.

How Do You Give Remote Employees Gifts?

The popularity of remote work makes this consideration a necessity. If you have workers who don’t come into the office, how do you provide them with gifts that will help them feel valued and seen? After all, remote workers feel 182% less engaged than in-person workers, and this primarily comes from the feeling of not fitting in.

Here are some ideas for gift giving that will show your remote employees that you care about them, that they’re part of a team, and that they matter:

• Send them packages. Whether you order something from Amazon and send it to them or create a custom Bonus Box from Awardco filled with their favorite things, these surprise packages are great ways to show remote employees your appreciation.
• Provide them with an experience. Working from home can blur the line between relaxation time and work time. Show remote employees that you understand this struggle by gifting them tickets to an event, a gift card to their favorite restaurant, a movie bundle with tickets and snacks, or paid-for classes.

If your workforce lives in the same general area, have managers or executives deliver gifts to remote employees’ homes. This face-to-face interaction will make the gift special.

12 Employee Appreciation Gift Ideas 

We understand that knowing people’s interests, hobbies, and likes/dislikes doesn’t mean buying a gift for them is easy—we struggle to choose the right gifts for our own family members every year! Gift-giving is difficult. But when done right, nothing makes employees feel more special or cared for.

To help you get started, we came up with 12 employee appreciation gift ideas. Hopefully, these ideas will spark other inspiration that will help you find the perfect gifts for your people.

1. Desk Plants

For those who appreciate a bit of green, a desk plant or some flowers for either the home or office is a great, budget-friendly idea. Plus, plants in the office can actually increase happiness and productivity!

2. Board or Card Games

As we mentioned before, people who value spending time with loved ones will almost always appreciate this gesture. Games are a great way to spend time together, and with these gifts, you show that the company prioritizes employee work-life balance.

3. Learning Experiences

For those who want to keep learning and improving, a class or experience can be an amazing gift. Find out what employees are interested in learning more about, and find a way to give the gift of learning.

4. Consultations with Experts

Do your employees have big decisions or plans to make? Whether they want to start investing, buy a new house, or redo their indoor decor, a consultation with an expert could be just the thing they need.

5. Handwritten Notes

One of the simplest and most affordable gifts of appreciation for employees is a handwritten note. When you or a manager writes a note to an employee, you show them that you appreciate and value them enough to take the time to do something personal and genuine. These can be extremely meaningful and valuable.

6. Gift Cards

Gift cards may not be the best option, but that depends on how you use them. As long as you know what your employees like and value, you can get them a gift card that means the world to them. Cards to the spa, a grocery store, or a specific dessert shop can all be fun and exciting gifts.

7. Charity Donations

Consider giving something to charity in your employees’ names for a more philanthropic gift. Ask the employees about their favorite charity, and then donate on their behalf.

8. Personalized Gift Baskets

This is especially great for remote employees. Send or give a basket with a few personalized items, such as the employee’s favorite snack, a gift card, a hobby item, and a personalized article of clothing.

9. Food or Meals

Free food is always a safe bet. Provide free breakfast or lunch at your office, send delivery to those working from home, or give out gift cards to employees’ favorite restaurants. Everyone’s gotta eat, right?

10. Books, eBooks, or Audiobooks

Many people love to read, whether that’s with a device, a pair of headphones, or a physical book. Learn which employees like to read and which medium they prefer, and then give them a book, an ebook, or credit for their audio account.

11. Vacation Credits or Days

A great way to show appreciation is by offering an extra day of PTO. You could also give people a personal vacation budget that lets employees travel in a more affordable way.

12. Office Upgrades

Whether your employees are remote or in the office, they’re sure to appreciate upgraded office equipment. Ergonomic keyboards, mice, or chairs are great. For those who don’t work in front of a computer, find what equipment they need to make their work better and give it to them.

We also have a gifting guide and a post on holiday gift ideas to help you find the right item for each person at your company. Hopefully, these posts will ignite some ideas for you to truly give meaningful, personalized gifts to your people.‍

Your Employee Gift Budget

As with most things in business, the answer to this is—you guessed it—it depends. How much of your budget have you allocated to employee recognition and rewards? 1% of payroll? More? 

The average budget is 2% of payroll, and the median amount is 1%. But do you want to tie gifts in with that budget? These are decisions each company will have to make for itself based on its income, employee count, and goals.

However, we have some general gifting budget advice that we hope will be helpful for companies of any size. 

A typical budget for a corporate gift is $50–$200. Where you fall on that range depends on the occasion. Other studies show companies should spend at least $50 per team member for companywide recognition events. 

These are general numbers that can give you some ideas for your gifting budget. 

Employee Gift Ideas for Different Price Ranges

Not every single celebration holds the same importance. A gift for International Friendship Day probably shouldn’t be as nice as a Christmas or birthday gift (or it can be; who are we to judge?). 

Either way, it’s not a bad idea to consider different gifts at different prices so that you can get employee gifts for all occasions without breaking your budget.

We’re going to preface this section with a little self-promotion: With Awardco, you don’t need to find specific gifts. Instead, you can reward points in any amount you choose to your employees and let them choose what they want!

Budget-Friendly Gifts for Employees (Approximately Under $25)

Yes, certain events may call for a small, inexpensive token of your appreciation. Remember, it’s more about the thought put behind the gift, not the gift itself. 

Here are small-priced gift ideas:

• Insulated water bottle
• Moleskine notebook
• BBQ grill tool kit
• Insulated lunch box cooler
• Portable Bluetooth speaker
• 2-piece cutting board set

The point we’re trying to make here is that you have a lot of options, even if you don’t have a big budget for gifts. Don’t settle for cookie-cutter ceramic mugs again—choose fun gifts and make sure everyone gets something they’ll appreciate.

Moderately-Priced Gifts for Employees (Approximately $25–$100)

This is where you have too many options to really count. With around $100 per employee, you have the opportunity to find gifts that will mean something to each of your employees. Some of our favorite ideas are below:

• Portable fire pit
• Magic puzzle 3-pack
• Sunrise alarm clock
• Kindle
• Luxurious self-care kit
• Meal kit delivery gift card

Premium Gifts for Employees (Approximately $100 and Up)

These are the gifts reserved for big events and celebrations. Has one of your top employees just hit their 10-year service anniversary at the company? 

Don’t settle for an acrylic trophy that they probably won’t care about. Think about high-quality gifts that mirror the dedication and effort the employee has shown over a decade. 

Here are some of our favorite big gifts (we’re leaving the price off these ones because they vary so much):

• Tickets for a cruise or vacation
• A gift box full of personalized items
• Dinner at a high-class restaurant
• Office equipment (such as a new chair or desk)
• Electronic equipment (such as a new computer or TV)
• Personal electronics (such as headphones or a smartphone)
• Kitchen equipment (such as an appliance or a stand mixer)
• Clothing and accessories (such as a new jacket, shoes, or sunglasses)

How Do Taxes Affect Employee Gifts?

Taxes are a big part of employee gifts, and there’s no getting around that. We don’t pretend to be tax experts on the level of H&R Block or TurboTax (the document the IRS uses for employee gifts and compensation is around 4,000 words long), but we do know a thing or two about employee gifting. 

Here are four things you should remember:

1. Any employee gift that is cash, gift cards, or points redeemable for merchandise is considered taxable income, with no exceptions.
2. Non-cash gifts under $100 in value are considered non-taxable.
3. De minimis fringe benefits are gifts or compensation that are small and insignificant enough that accounting for them is unnecessary. Holiday gifts (under $75), occasional meals, or occasional tickets to events are good examples of this.
4. Length-of-service awards and other employee achievement awards CAN be non-taxable, but only if they meet certain criteria (such as an award for over five years of service and a value of less than $1,600 per year per employee).

Tax laws can be confusing, so we recommend reading the three sources linked above and talking with a tax expert to get more details.

Beyond Generic: Personalize Employee Appreciation Gifts

Get employees gifts that they’ll actually appreciate. 

• Approximately 70% of employees surveyed said they received gifts they didn't want and never used from their employer. 
• 24% say they experienced feelings of awkwardness from getting an unwanted gift from their boss.

Make Employee Gifting Easier & More Meaningful with Awardco

Remember, not every event is worth the same type of gift. Leaning on a trusted reward and recognition software like Awardco can help show employees that you care. 

Our partnerships with Amazon Business unlock a diverse range of gifts for your employees and take the headache out of all the usual administrative complexities. Schedule your demo today.