Research: Rewarding employees with a gift keeps them motivated

As we enter the holiday season, many bosses are thanking employees for their yearlong contributions with a gift. According to the Advertising Specialty Institute corporate gifting survey, 42% of companies are rewarding their workers with a gift. But maybe that number would be higher if more employer knew about the long-term benefits a one-time gift can have?

More employers should get in the gift-giving spirit, new research suggests, because a gift not only makes employees feel good, it also keeps them motivated and engaged with their work.

The benefits of receiving a company gift

Some employees receive extravagant company gifts like a “tablet computer” or a “trip for everybody down to Reno for three days all expenses paid,” as the corporate gifting survey found. But the price tag does not necessarily matter as much as the fact that you are showing appreciation towards your employees.

The physical gift itself can have unseen effects on an employee’s mood and engagement at the office.

In a separate survey of more than 1,470 Americans, respondents said that a holiday reward made a significant difference in their motivation to keep working. More than any other reward offered, the holiday gift made the majority of these employees feel valued. The majority of respondents — 70% — said receiving a holiday gift from their employer made them want to work harder at work.

In this way, gifts are a win-win for employers and employees. Employers get to feel generous and employees get to see their value recognized. The holiday gift is a small but important reminder that the company recognizes and reward the hard work employees do.

If bosses want to honor their employees’ work and get them to stay another year, a gift can go a long way.