How much should you spend on employee gifts?

There are various factors to consider when determining how much you should spend on employee appreciation gifts, two of the most obvious being your budget and company size. However, there are other factors to consider as well, such as the magnitude of the occasion – is it a major anniversary for the company or an employee’s birthday? Additionally, it is essential to make sure your gifts are consistent and fair. For example, the gifts you purchase for Employee Appreciation Day may cost less than a gift you give an employee retiring after 25 years of employment. If you’re still not sure what your employee appreciation gifts should cost, take a look at the breakdown below:

·         Professional Achievements

Whether you are rewarding an employee who has significantly outperformed your expectations or thanking a retiring employee for years of service, there are special occasions that require a nicer gift. These events are not typical and should hold a great value to incentivize other employees to either produce more or look forward to retiring with your company. We recommend gifts that cost no less than $50 and do not exceed $100. A gift under $50 may not relay your appreciation. However, gifts over $100 each could guilt an employee rather than show appreciation and may seem too flashy.

·         Personal Milestones

Recognizing personal milestones is a great way to help a team feel connected. By celebrating life milestones such as marriage, having a baby, or celebrating an employee’s graduation, you can show your employees you care about their well-being. The cost for these gifts should range from $25 to $100, depending on the nature of the milestone and the length of time the employee has worked for the company. We recommend establishing a baseline for these to be fair to all employees.

·         All-Staff Gifts

Whether you are celebrating Employee Appreciation Day, a holiday, or want to gift employees something for their birthdays, gifts you plan on giving your entire team should be cost-efficient to ensure you can keep the price tag the same for all employees of the same level. Leadership positions can be given nicer gifts. However, this too should be handled fairly. The exact cost of the gift should be under $25 for employees and under $50 for leadership. 

Not sure where to start with selecting the perfect employee gift? No problem. The local teams at  Fully Promoted  are standing by and ready to help you find something that is within your budget and appropriate for the occasion – the possibilities are endless. Contact us today!

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