As the festive season is just weeks away, many employers are wondering if they should buy Christmas gifts for employees. You may already do so! But if it’s something you are simply considering, let us help.

Recent figures from Gallup show almost 80% of employees are feeling disengaged at work. Feeling disengaged can lead to employees becoming a ‘flight risk’. This, as we have seen, creates disruption and adds costs to your business if you need to recruit to replace an employee.

But showing you appreciate employees increases engagement. And with so much doom and gloom around at the moment, a gift will also lift spirits. 

A study from a couple of years ago shows that recognising employees through gifting isn’t just for Christmas. The research from payouts platform Tremendous reveals that 75% of employees say a Christmas gift increased their job satisfaction. More importantly, almost half reckon that the boost to morale lasts a year or more.

The benefits for employers

Employers giving gifts can increase positivity among your employees. One study shows that a business is 12 times more likely to record strong results when employees are recognised for their contribution.

And while it may seem to be a cost to your company, ‘trivial benefits’ for employees are not subject to NI or income tax. A trivial benefit is classed as a gift or perk that is less than £50. But beware that doesn’t include company Christmas parties. So, Christmas gifts can be a cost effective way of showing appreciation to your employees without breaking the bank.

What you need to know

Before buying any gifts, decide now whether you will be repeating the gesture next year. Remember, the study mentioned previously shows the feel good factor can remain for a year! But if you forget to bother next year, it can have the reverse effect! 

Don’t give gifts with your company logo. It feels impersonal and you also risk looking cheap. It can look like you’re offloading promotional goods that weren’t given away this year!

Here are a few more of our tips…

More tips when buying Christmas gifts for employees

• Don’t show favouritism. Keep everyone’s gift the same. Don’t buy unique gifts because you risk making one gift look more valuable than another. The only exception is if you have a personal assistant. Buying a more appropriate gift is acceptable due to their working relationship with you.
• Keep gifts gender free. Not all women want scented candles and not all men appreciate beer! A gift card for a store that sells a range of goods can be useful, or a holiday gift card that they can use for a hotel stay or longer break is something anyone can use. Restaurant, theatre or cinema cards can all be great gift. And it doesn’t matter whether your employee is male or female.
• Avoid ‘funny’ gifts. Your sense of humour may not match that of others. So a novelty ‘fun-shaped’ gift might offend some employees. Stay away from such risqué ideas. Also, don’t make fun of someone when choosing a gift. For example, buying someone bath products because they have an odour problem could constitute bullying.

HR advice

Whether you’re looking for advice about boosting employee morale or have plans to expand your workforce next year, shrewd HR can help. Contact our experienced team today.