What do you give if your holiday gift list is 50 people long? Or 500 people? This is the dilemma that many employers face this time of year. Should they give gifts to employees? And if so, what should they give?
First, think about your reasons for giving a gift and the message you wish to convey to your employees. Giving a gift during the holiday season is about showing appreciation to your employees for their efforts all year. Hopefully, you have been showing your appreciation and gratitude all year long. This is another opportunity to show that they are valued.
If you decide to give a gift, what should you give? Think about three aspects of a gift that you probably consider when selecting one for family and friends. Will the gift be personal and meaningful to the recipient, and is it desired by the recipient? Do the same with your employees. For example, your organization may decide to give a gift card to your employees. Rather than giving the same gift card to all your employees, take the opportunity to personalize the gift and provide a gift card that means something to each employee.
For outdoor enthusiasts, give a gift card to a recreation or sporting goods store. For foodies, give a gift card to a new local restaurant. For techies, give a gift card to an electronics store. Managers often know their employees’ hobbies and interests. If they don’t, they can ask. And include a handwritten note of appreciation.
To ensure that the gift is meaningful, choose an amount that provides appropriate purchasing power. A $25 gift card to a spa will not go far, but the same amount will go further at a local coffee shop.
Make sure to choose a gift that is desired by the recipient. Don’t provide a gift card for food delivery services to an employee who lives in a rural area and cannot use the gift. Also, resist the inclination to give company swag as a holiday gift. Company swag is more about the organization than the employee.
Keep in mind that employee gifts may be taxable. Check with your tax advisor or review the IRS’s information on de minimis gifts. Cash and cash equivalent items (gift cards and certificates) are taxable, regardless of the amount.
If you need ideas on showing your appreciation to your employees, contact Employers Council or use the Communities page on Member Central to start a conversation on gift giving with other members.
Laurie Enke is a human resources consultant for Employers Council.