David Friedland
Employees are the lifeforce of a corporation. Without the hard work of employees, an enterprise would cease to exist. A way to show appreciation and respect during the holiday season is by offering gifts, but between taxes and HR requirements, gifting can feel like an intimidating endeavor. The most important thing to know is that a well-thought-out gift can improve employee retention and boost morale. Here are six corporate gifts myths to bust before you bust out the wrapping paper.
Gifts are not that important
A common misconception is that gifts are not that important. Employees work for one reason, and that is money. As such, non-monetary holiday gifts are a low priority. However, this line of thinking could not be further from the truth.
Gifts increase affective commitment, defined as an employee’s emotions toward an organization. When affective commitment increases, turnover is less likely to occur. Gifts are vital because they make employees feel valued.
When it comes to gifts, company size matters
A large company has more employees, higher levels of revenue, and more money to give. Therefore, the larger the company, the bigger the gift must be. In reality, size matters less than you think when it comes to making your appreciation known. In fact, in many cultures, large gifts can be offensive. Even if it’s small, a well-thought-out gift will create a more positive response.
All gift certificates must be reported as taxable income
There is a big misconception that all gift certificates must be reported as taxable income. Most monetary gifts, like certificates, bonuses, and gift cards, are taxable income under IRS codes, but the rule has some exceptions.
For example, turkey gift certificates are fantastic Christmas gifts for employees because they often fall under the IRS de minimis fringe benefit rule. This rule states that any gift certificate that is not exchangeable for cash, infrequently given, and administratively impossible to track may be exempt from taxable income. In other words, you can have your turkey and eat it too.
A corporate delivery company will save you money
Corporate delivery companies often advertise free gift delivery. Some corporations see a corporate delivery company as a way to cut costs. Sadly, delivery is priced-in, and there is no such thing as free delivery. A corporate delivery company will not help your organization save money.
Gift personalization and presentation do not matter
Some corporations underestimate the intrinsic value of gift personalization. A beautifully presented gift with a personal touch adds value to the corporate gift. An employee sees a personalized gift as a more effortful endeavor. Personalized and well-presented gifts increase the appreciation level of corporate gifts.
You can kill two birds with one stone with branded gifts
While it is true that branding helps promote a company message, holiday gifts may not be the best time to do so. You can give your employees mugs, pens, and notebooks with company branding at any time of the year. Company branding on a holiday gift can feel cheap, insincere, and impersonal. An impersonal gift may be worse than receiving no gift at all.
Wrapping up
A gift is a way that corporations can show appreciation to employees. A tangible representation of appreciation improves commitment and company loyalty. The benefits are endless, and your organization will reap the rewards.
