Here we go again! It’s that time of year for Christmas gifts and celebrations, both at home and at work. However, statistics show that Christmas gifts for employees often don’t go over well. Many companies have even stopped giving small gifts altogether. Find out here what employees really want for Christmas and why your company should definitely take Christmas into account.
Why You Should Never Skip Christmas Gifts for Employees
Your employees are your greatest asset! Why not take EXACTLY THIS opportunity to show your employees how much you appreciate them? For a whole year, all employees and management have worked hard for the company—it’s the perfect time to say a little “thank you.”
Especially in times of labor and skilled-worker shortages, you should be responsive to your employees in all areas, listen to them, react proactively, and take action.
The Magic Word: Employee Experience
This is about attention, about how people are perceived, and about the needs of your employees. It’s about ensuring that they aren’t simply treated as resources to be taken for granted, but rather that they feel like a valuable part of the company.
Come in—work—leave—come back and work again, without any apparent added value, without even being noticed? Unfortunately, this is the norm in many companies and is extremely demotivating for employees.
Beautifully packaged and custom-designed
A small gift, beautifully wrapped, for example in a gift box and personalized. Accompanied by a creative card and wrapped with beautiful ribbon. There are many ways to present Christmas gifts for employees in a fitting manner.
One-third of German companies do not give Christmas gifts to their employees
If a study is to be believed, one-third of German employees do not receive any recognition in the form of Christmas gifts from their boss. Yet a Christmas gift is precisely the kind of small gesture that carries great symbolic significance and, as the year comes to a close, offers you an excellent opportunity to make a positive impression once again and retain valuable employees for your company.
A greeting card isn’t enough
A greeting card certainly shows that you haven’t completely forgotten about the upcoming Christmas holiday—but that’s about it. A greeting card is a cheap item and, at best, shows that you’ve tasked your secretary or an intern with designing a Christmas card, but wanted to avoid any further effort. Take care of your human resources!
An inappropriate gift is considered less valuable if it does not meet employees’ needs or is of little use
From an employee’s perspective, a valuable gift may therefore be devalued, since the employee is likely to view an expensive pen as having little value. The situation is different when the giver and recipient know each other, as preferences can then be taken into account. In large companies, of course, this is difficult to achieve.
Theory: Over 70% of employees would like to receive gift cards
First of all: Only about 30% actually received them last year.
Employees’ preference for gift cards stems from the fact that corporate Christmas gifts often do not meet their needs. As a result, the gift loses its value and often has no further use or added value for the employee. A gift card, on the other hand, can be used flexibly to purchase items that are actually needed.
You eat with your eyes first! Premium gift certificate packaging in high quality
Under no circumstances should you package your gift certificates in standard, flimsy packaging that falls apart just by looking at it. Give the gift of quality—because that’s exactly what your company stands for.
Gift Cards – Tax-Free Christmas Gifts for Employees
Giving employees gift certificates as a company is not only good for employee retention, but also offers some tax benefits. Employers can provide their employees with up to 44€ in the form of benefits in kind, such as shopping gift certificates.
Gift certificates are not subject to tax
Gift certificates are exempt from income tax and social security contributions within the statutory exemption limit. Since 2015, the exemption limit for occasion-based gifts has even been raised from 40 to 60 euros. This means that employers can provide their employees with thoughtful gift certificates not only at Christmas but also on occasions such as birthdays or other celebrations.
In Practice: But what do employees really want right now?
More money—that’s what most people would probably answer almost instinctively. But let’s ask ourselves at this point: “Is that really what we want?” Upon closer examination, however, the answer turns out to be much more complex, and terms like “appreciation” and “recognition” come to mind.
Money as a Motivator?
Empirical studies have shown for years that money, as a motivator, has only a very short-term, temporary effect. For the vast majority of employees and managers—especially today in modern, service-oriented companies—it is important to have a pleasant work environment.
This is also urgently needed, because more than half of German employees feel that their work is not sufficiently valued.
The Christmas Party—Is It Really Necessary?
In addition to Christmas gifts for employees, the Christmas party is an important part of companies’ holiday activities. More than 70% of employees view the Christmas party as a gesture of gratitude. At the Christmas party, companies can connect with employees, give a speech, and show their appreciation. It’s therefore an excellent opportunity to assess employees’ needs and present the company in a positive light.
☆ Practical Tips from Experts ☆
Take Advantage of People’s Expectations
It’s simple, cost-effective, and yet has a lasting impact on the culture of the entire company. And by the way, “giving” is also an emotionally rewarding and satisfying experience for leaders. After all, far too often during the rest of the workdays throughout the year, employees must be pushed to perform and work hard. Breaking this pattern even once creates a bond between the recipient and the giver.
“Small gifts keep friendships alive”
An age-old piece of wisdom that remains entirely true. After all, human psychology doesn’t change nearly as rapidly as the modern workplace and the trend toward digitalization.
For the past 20 years, Martin Reckel has been an expert in areas such as human resources, leadership, and, of course, corporate compensation systems. www.5Basics.de
For him, the main advantage of Christmas gifts for employees is that they are not subject to “established company practice”—a term that describes a situation where employees can continue to expect recurring monetary payments, which can be a dangerous and costly trap. Of course, he advises, the value of the gifts must be accounted for in payroll within the monthly and annual exemption limits, but this is not a problem for the HR department or the payroll service providers involved.
The resulting cultural shift—where employees truly feel valued—is, in his experience, priceless.
“Small gifts keep friendships alive”—an age-old saying that remains as true as ever. After all, human psychology doesn’t change nearly as rapidly as the modern workplace and the trend toward digitalization.