In a context where employee engagement and loyalty represent major challenges for companies, offering appreciation gifts is becoming an important gesture that should never be improvised. Integrating these tokens of appreciation into a structured budget helps ensure their long-term consistency and effectiveness while respecting available financial resources.
Here's how to intelligently plan this form of recognition in 4 steps.
Step 1: Clearly define the purpose of the gifts
It may first be worth asking why we choose gifts over other forms of recognition. Part of the answer lies in their tangible dimension. Unlike a simple compliment, an object or experience embodies recognition, reinforces the feeling of being seen and appreciated, and can be shared (or shown to loved ones). Of course, gifts are no substitute for a culture of daily recognition, but they can effectively support it when carefully considered.
Before talking numbers, we need to establish the reason behind the gifts: are they intended to recognize exceptional performance, to thank talent at the end of the year, to mark a service anniversary or to celebrate a major collective milestone?
Clarifying the targeted occasions allows for the development of a coherent strategy. You can opt for individual (e.g., work anniversary), collective (e.g., team success), or hybrid gestures. This upfront consideration ensures greater fairness, helps avoid oversights, and promotes more targeted and meaningful recognition.
Step 2: Establish a realistic and sustainable budget
Once the intentions are set, it's time to define the financial envelope. Many experts recommend allocating a fixed percentage of the HR budget or payroll to recognition, including gifts. The Society for Human Resource Management (SHRM) suggests that at least 1% of payroll be dedicated to recognition. Other experts mention that an amount ranging from $100 to $350 per employee per year is considered reasonable to cover the various forms of recognition.
The important thing is to build a sustainable budget, one that doesn't rely on one-off surpluses or last-minute decisions. Don't forget to add a buffer for unforeseen events: the arrival of new employees, rapid growth, or exceptional events.
Managers also need to be equipped. Providing a budget for each manager gives them the freedom to make simple, spontaneous, and personalized gestures, based on their team's dynamics. This helps embed recognition in everyday life.
Step 3: Choose suitable and coherent gifts
Choosing gifts is as strategic as budgeting. Here are some commonly appreciated options:
- Universal gift cards or prepaid cards: simple and versatile, they give the employee the choice on how to use them;
- Personalized items: A personalized touch (with the employee's name or a unique message) can make all the difference;
- Gourmet or local gifts: boxes, artisanal products, etc.;
- Experiences: tickets to a show, access to a wellness activity, creative workshop, etc. This type of gift is particularly appreciated by the younger generations, millennials and generation Z, who are fond of new experiences.
The ideal is to opt for variety while maintaining a certain consistency between services or departments. A tiered system, for example based on age or type of used vehicle, can also help structure the offering.
Keep in mind that a personalized gift has a stronger emotional impact than a generic item. It demonstrates that you know the person well and that you've taken the time to think about them. This type of recognition strengthens the bond of trust, fosters a sense of belonging, and remains etched in the memory for longer.
Step 4: Track and adjust as needed
Like any HR initiative, the gift program should be evaluated periodically. One or two questions can easily be included in an internal survey to get feedback on the gifts received: Were they appreciated? Did employees feel valued?
Analyzing responses allows you to adapt the program based on needs. It can also help you better allocate your budget based on preferences: perhaps some employees prefer experiences over items, or would like more options to personalize their gift.
Planning to better recognize
Giving an employee a gift is never a trivial matter. When well planned, this gesture becomes a powerful means of recognition, meaningful and aligned with the company's values. It shows that you see the individual behind the contribution and that you're taking the time (and resources) to highlight its importance.
In a sometimes constrained economic context, planning becomes a valuable ally. It allows us to do better with available resources, without compromising the intention.
Moreover, if you're short on time to properly orchestrate all of this, it's entirely possible to delegate the management of recognition gifts to specialists. Accolad offers you a modern and personalized approach to automatically recognize service anniversaries, retirements, and any other event. This way, you avoid oversights and allow your HR team to focus on other important matters.
Pascale Hubert
Web Writer