Employee gifting can play an important role in employee retention in a tight labor market, which is why US businesses will spend upwards of $40B in employee gifting this year.

The good news: Gifting plays an important role in employee connectedness, loyalty, and retention.

  • 81% of employees feel appreciated when they receive gifts from employers
  • 56% feel recognized for doing a good job
  • 41% indicate that gifts positively influence their opinion of their employer

Our study also identified clear opportunities to deepen the impact of employee gifting, given than 40% of respondents reported being less than “very satisfied” with their gift and 52% referred to their last gift as not “very memorable”.

The key finding is that the more memorable and personal the gift is, the more appreciated and connected the employee feels to the giver. Employees who received gifts they characterized as memorable and personal were 70% more likely to report feeling connected to their employer, and 45% stated that the gift made them want to work at the company longer.

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