Alright, HR folks, let’s talk. Your end-of-year gifts are supposed to be a mic-drop moment, a grand finale to a year of hard work. But instead of applause, you’re fearing eye rolls. Or worse, people taking to social media about how crappy their company’s Christmas gift was.
Talk about a Grinch moment.
But why? Well, it’s because that swag bag, with its one-size-fits-nobody approach, totally missed the mark. Your CEO probably doesn’t want to hear this, but their ‘great idea’ that was yet another off-brand Yeti mug with the company logo is as good as landfill.
A recent survey from FinanceBuzz show that 60% of respondents would prefer a bonus over a holiday party, and 52% are expecting said bonus. While bonuses can vary, HR Future notes that holiday gifts typically falls between $25 to $150 per employee — which of course will depend on your corporate budget, number of employees, etc.
How do you win? Understand and recognize that everyone wants something different.
Swag snafus happen. But if you keep our do’s and dont’s of end of year employee gifts in mind, we promise you’ll be met with smiles instead of becoming a viral sensation for all the wrong reasons.
(Already given out lackluster presents? Skip ahead to the last section for how to roll it back.)
Point 1: The ‘Meh’ in Merch
You thought a $100 voucher for company merch would be a hit, right? Plot twist: it wasn’t. In an era where personal style and comfort reign supreme, limiting your team to a single unisex shirt and pair of pants is like giving a music lover a CD in the age of Spotify.
It’s not just about the gear; it’s about giving your team choices that they actually care about.
In fact, to offer the ultimate choice, nearly 25% of our clients at Compt offered spot bonuses during the holiday season to their employees, covering things like end-of-year team lunches, alternatives to holiday swag,or appreciation bonuses.
Data, but make it fashion:
Diving into the deets from Gallup’s latest research, the big reveal is: Casual is king and queen in today’s workplace wardrobe. But here’s the kicker — it’s not just about being casual; it’s about craving choices.
When employees can strut their stuff in gear that’s authentically them, that’s where the magic happens. You’ll see that every time an employee wears something of their choosing, they may even think more positively of you, dear employer. It’s an easy way to boost job satisfaction and office morale, especially if they were given the choice between athleisure for work from home versus a snazzy new blazer.
The message is crystal clear: A voucher for the same old company gear? Meh. Letting them jazz up their work wardrobe with their own picks? Now you’re talking their language.
Point 2: The Disappointing Token of ‘Appreciation’
I’m gonig to be blunt here: The end-of-year ceremony where everyone gets a mug or a generic plaque is more or less a slap in the face. It’s supposed to say, “Thanks for all your hard work,” but instead, it whispers, “Welp… here you go.” These token gifts often miss the mark in making employees feel genuinely valued.
In an age where personalization is possible at every turn, sticking to these one-size-fits-all tokens can make your team feel undervalued and overlooked. Instead, find inspiration from people-first companies on corporate gift-giving. You’re welcome.
Show me the money:
A survey from Robert Half found that most employees prefer monetary recognition, such as cash bonuses. Other popular forms of recognition included promotions, praise from a manager, extra time off, and recognition lunches or dinners. This suggests that employees value tangible and practical acknowledgments that reflect their contributions and achievements. It also indicates that personalization in employee recognition programs, allowing employees to choose the form of their reward, can be more impactful than generic gifts.
More importantly, though, there are several prime examples of employee recognition that should be given in real time and year-round, not just in December.
It’s more meaningful to say thanks or “Wow, what a great job on this project” in the moment.
Pair that with a cash bonus for them to spend on what they want? Now you’ve hit the jackpot.
Psst: Read our ultimate guide on spot bonuses for more tips on how to launch a successful bonus program.
Point 3: The One-Off Experience – Missing the Mark on Lasting Impact
Many companies have shifted to gifting experiences — like a day at the spa or a fancy dinner. It’s a step in the right direction but still a shot in the dark. While some might revel in these experiences, others may find them out of sync with their interests or lifestyles. An extravagant dinner is great, but what if the employee is a homebody who prefers a quiet night in? The key is in the details and offering choices that cater to diverse preferences.
Data Dive:
The Incentive Research Foundation’s study highlighted that nearly half (49%) of respondents listed getting a paid day off among their top three preferences, and another 21% listed it among their next four top preferences. The lowest-ranked recognition approaches included getting a trophy, certificate, or plaque, and receiving company-logoed merchandise.
But if you’re going the ‘experience’ route, it can’t be (bet you can’t guess what I’m about to say) a one-size-fits-all approach.
This is the perfect opportunity for a ‘Take a Break’ stipend that people can use to take their kids to Disney, go sit on a beach somewhere, or relish in multiple DoorDash deliveries while they unwind in the comfort of their own homes.
A Tax-Compliant Gifting Platform? Yes, there is a Santa.
Gift your employees spot bonuses and personalized stipends through Compt. It’s time for you to sleigh this year’s holiday gift.
Point 4: The Eco-Friendly Faux Pas — Green Gifts That Aren’t Always Gold
Jumping on the eco-friendly bandwagon, some companies opt for ‘green’ gifts. While this is commendable, these gifts absolutely must be practical and desirable. A reusable straw set or a plant might check the eco-box, but do they resonate with everyone?
A survey by Custom Ink found that nearly 70% of employees prefer sustainable gifts. This preference aligns with a growing concern for the environment, with 60% of respondents expressing high levels of concern for environmental health.
While being sustainable and environmentally-friendly is commendable, here’s where I remind you that the gift should match the effort. Imagine getting some straws as a thanks for exceeding revenue/sales goals the whole year. Sustainability is critical, but so is usability. Gifts that combine eco-consciousness with everyday utility are the real winners.
Data Dive:
The same CustomInk survey found that a significant percentage of employees, particularly in the 25-34 age demographic, prefer sustainable corporate gifts aligning with their environmental concerns. But what about your employees outside this 9-year age range?
Vantage Circle suggests a range of eco-friendly gift options, such as recycled plastic products, digital gift cards, and stainless steel drinkware, which are both environmentally friendly and practical. If you’re going down this road, maybe combine this approach with another, like those straws AND a drink or meal allowance idea that can be spent on their favorite coffee or adult beverage. Take it to the next level when you can.
Psst: See how others spend their meal tickets in our roundup of top food stipend ideas. Getting hungry yet?
Damage Control: Making It Right
So you gifted before you read this, huh? Well, like we said. It happens. The good news is that if you act quickly, you can turn the situation around with honesty and transparency. Here are a few pointers:
Real Talk Time: Send out a no-BS, all-heart email. A little “Hey team, looks like our gift game was more ‘miss’ than ‘hit’ this year, and for that, we’re sorry.” Honesty is refreshing.
Spill the Tea Session: Set up a chill, no-judgment feedback sesh or send out a survey to see how people are truly feeling. Think of it like a virtual coffee date where everyone can dish out their thoughts on the gift-gate. It’s all about listening and learning.
Make-Good Move: Show you’re not just all talk. Maybe swing them a spot bonus, something small yet thoughtful that they can spend to get exactly what they want. It’s like saying, “We goofed, but hey, here’s a little something to brighten your day.”
Long-Term Fix: Gift Game Glow-Up
Getting your gifts right might not happen overnight. Especially if you’re a larger organization, it can be difficult to understand what your people really want, and how to scale your programs appropriately. While the above do’s and don’ts of end of year employee gifts can help, here are a few more ideas you could try out:
Gift Squad: Assemble a diverse crew of employees to be your Gift Avengers. Their mission? To make sure future gifts aren’t a yawn-fest. Have them represent different types of employees in your organization — those who sit at desks, those in the field, those who have been there 20 years, and those who just started. You’ll likely get a lot of diverse opinions, but if they can agree on something, that’s a really great start.
Choose-Your-Own-Adventure Gifts: Scrap the one-size-fits-all nightmare. Roll out a smorgasbord of options — gift cards, experience passes, you name it. Let everyone pick their own brand of joy.
And (we’re just saying) a Compt stipend is the most sensible (and tax-compliant) way to do this so you don’t have to stand in front of the gift card wall at Target, tossing them all into your cart.
Shoutouts over Stuff: Pivot to props that matter (more shoutouts, career and professional development growth goodies, and maybe an extra day to chill at home). Show love in ways that count throughout the year. Spontaneous recognition in April can be so much more meaningful (and memorable) than the gifts that come every December because the company feels like they have to do something for the people.
Feedback Loop-De-Loop: Keep the convo going. Do regular check-ins on what’s hot and what’s not in the world of workplace perks, and not just on LinkedIn or at HR conferences. Ask your employees what they like just as often as you ask your HR friends what’s working at their companies.
Spreading the Word
Clear the air with some straight-up chat about the new gift plans. Lay it out like, “We heard you, we’re shaking things up, and here’s how.” Then, build the hype. Get everyone jazzed about the new plan. It’s like the trailer for a movie everyone’s been waiting for – build that excitement!
By keeping things honest, fun, and employee-focused, you’re not just fixing a gift mishap – you’re building a culture where everyone feels heard and valued. And that, my HR pals, is the real gift.
Gift like you mean it, with Compt
Don’t get too overwhelmed with end-of-year employee gifting. We’re here to help, with tax-compliant stipend programs to make end of year gifts and bonuses a breeze. More time to craft a perfect eggnog recipe, less time agonizing over spreadsheets.
Ready to get started? Get in touch with a member of our team to chat.
