10 Reasons Corporate Gifts Are Important

A gift can make a lasting impression. Whether it is a water bottle that will keep your ice frozen for days or a basket of beets, a gift can impact a relationship.

In business, a corporate gift has the same effect. When done correctly, a corporate gift can build an immediate emotional connection between the recipient and the company. As more companies embrace an “employee-first mindset” and focus on how their work culture impacts their growth potential, corporate gifting becomes vitally important. 

However, corporate gifts are not important just because of employee relations, but they can also play an essential role in marketing and maintaining clients. To help you better understand why you should implement a corporate gift program, here’s an overview and 10 reasons why corporate gifts are important:

What is Corporate Gifting?

Corporate gifting is sending an employee, client, or prospect a gift to strengthen the connection between both parties. The other parties involved in corporate gifting are clients, potential clients, employees, or vendors. 

Sending someone a gift from your business can come in two forms: 

• Physical gifts: Corporate swag, care packages, new products, and food
• Non-physical gifts: Digital gift cards, an experience or activity, and time off

While corporate gifting might seem like an expensive program to implement, it doesn’t need to be. Many corporate gift ideas can fit a variety of budgets, from a retreat to an appreciation gift of a group ecard.

The goal of a corporate gift is not how elaborate the gift can be, but rather that it is a personalized display of appreciation.

10 Reasons Corporate Gifts Are Important

1. Strengthens relationships with clients

It might seem counterproductive to spend the money on gifts for clients as a way to increase revenue. However, while corporate gifts do cost money, there are many benefits to providing a gift to your clients. 

Enveloped in all of the reasons why corporate gifts are important to clients is that businesses run on relationships. You and your employees continuously maintain a relationship with the client as you provide services and products. The success of both parties is dependent on a positive relationship. 

Corporate gifting can provide a means to show your clients that they are more than just a name on your list but rather a valuable part of your business. A gift can be what reengages your client to remain loyal to your organization. In fact, 63% of companies credit gift-giving for improved client relationships. 

As this relationship builds, so does the connection, and a stronger connection means the client will invest more in your business and be more likely to promote your brand to others. 

When to give a gift to clients

Traditionally, corporations give gifts to existing clients at the end of the year to express appreciation for a year of work together. However, many other opportunities exist to send a gift to a client. These opportunities include:

• To celebrate a significant milestone in your client’s life, like a wedding or new baby.
• After a contract renewal
• When launching new products or services
• Welcoming a new client
• During corporate events
• As part of a major holiday

2. Improves employee connection

Employees are a company’s most important asset. Investing in the employee becomes vital to the success of a business. This “employee-first” mindset is changing how corporations look at their workplace environments and recognition programs. One area that will improve company culture and improve an employee’s connection with their work is through corporate gift-giving.

Receiving a gift is a sure way to build positive feelings between individuals. Getting an employee gift, especially if it is well thought out and personal, makes people happy. Positive encounters like this, between employees and the company, are what build connections.

As these positive relationships are built through gifting, an employee will better understand that they are a valued member of the organization. 

When to give a gift to employees

A gift can be a meaningful way to show appreciation for your employees. They can demonstrate gratitude for their contributions as well as celebrate significant moments in their lives. Some of the opportunities to give a gift are:

• An employee birthday
• Personal achievements like anniversaries, graduation, growing family
• A Work anniversary
• A wedding
• As a holiday gift
• As a welcome to the company
• Other employee milestones
• For completing a difficult project

3. Encourages future client prospects to do business with you

Many corporate gifts are for people who aren’t a customer yet. A corporate gift can be a way to begin a relationship and demonstrate what it is like to work with your organization. As part of obtaining new clients, a corporate gift can act as a follow-up to the initial meeting. Sending a small token of appreciation for meeting with you can foster a positive first impression.

A corporate gift can also help personalize the recruitment process. Because the prospective client is likely to be entertaining other companies along with you, a personalized gift can be a way to set your organization apart. By taking the time to send something, the prospect will feel valued. Additionally, they will be reminded of the company as they use the gift. This will keep you on their mind and may help influence their decision.

4. Helps build brand recognition

One place where you might consider providing a gift is at an event or conference. At these events, supplying items like pens, notepads, key chains, or hand sanitizer with your brand on them that can be given out will help build brand awareness. Who doesn’t love a free pen?

As the members of the event utilize these event gifts, they will continually see your name. Then, when the opportunity arises, and they are in need of a company with your services, your name will be one they remember. 

5. Encourages loyalty

As your gifts foster positive experiences and build connections, there will be an increase in loyalty. For your customers, the more positive your interactions, the greater their commitment will be. This also applies to employees. An employee who feels appreciated and understood is more likely to remain loyal to the organization, even when challenges arise. 

Increased loyalty will boost business as your employees interact positively with the customers, fostering those relationships with good customer service. Loyal clients will keep their business with you, maintaining a revenue source. They will also become more likely to recommend your brand, potentially leading to new business.

6. Increased productivity

Whether through a gift given after reaching certain benchmarks or as a way to express appreciation, gift-giving to employees will boost productivity. In a survey of 1,470 Americans, 70% said receiving a gift from their employee increased their productivity.  

The increase in productivity happens because employees rewarded for their hard work are less likely to experience burnout. Acknowledging their contributions with a gift will help your employees feel valued, more connected to the organization, and overall happier in their workplace. A more satisfied employee means they will be more likely to remain engaged in their work.

7. Increased employee retention

While every company will experience employee turnover due to unavoidable factors, like moving, the goal of an organization is to limit voluntary turnover factors. According to  The Great Resignation Report, 21% of surveyed employees said they quit due to feeling unappreciated. One of the best ways to avoid employee turnover is to show genuine interest in employees and their development through workplace appreciation programs.

Corporate gifting is one of those workplace appreciation programs that you can use to increase employee retention. As you focus on celebrating an employee milestone or an employee’s success with a gift, employees will have greater job satisfaction. Happy employees will be less likely to leave. 

8. Spreads happiness

Happiness plays an essential role in the overall success of the company. The fact of the matter is if your workplace is filled with unhappy employees who are simply there to receive a paycheck, it probably isn’t a fulfilling environment. 

Getting the perfect gift is a happy experience, and happiness is contagious. As employees and clients receive this happy gesture and better understand their value, they will spread that positivity to others. A positive attitude towards a company can make a major impact on a healthy company culture.

9. Fosters a healthy company culture

When you think about a healthy family, they are probably a family that celebrates together. The same goes for a “work family.” Because colleagues spend so much of their lives with each other (maybe even more than with their actual family), a healthy company culture becomes vital to a company’s success. 

While gift-giving isn’t necessary for a healthy family or company culture, it can help. Corporate employee gifts can impact a company’s culture by:

• Establishing a culture of appreciation 
• Fostering celebrating each other
• Increased understanding among coworkers
• Builds interpersonal relationships
• Encourages open communication

10. Can bring together hybrid and remote teams

In recent years, more companies are embracing a hybrid or completely remote model. While there are many benefits to allowing employees to work remotely, a hybrid workplace poses some unique challenges. One of those is how to build a sense of community. With employees spread out, it can be difficult for coworkers to get to know each other and feel involved in the company. 

A corporate gift can bridge that connection gap. It can be a physical representation of the relationships they are building that is otherwise entirely reduced to a screen. Finding ways to engage with one another will help establish a sense of community and give coworkers something to talk about with each other. 

Things to Consider When Giving Corporate Gifts

• Set up a gifting strategy: while finding a gift last minute every time is possible, it probably isn’t a sustainable option. By setting up a system, you will be able to have gift ideas of the best corporate gifts ready in hand that follow corporate policies on gifting. Additionally, this will allow you to budget for the gifts to reduce overspending.
• Identify the cases where a gift will be given: The fact is, there are many opportunities to provide a corporate gift, and it isn’t the most budget-friendly option to give a gift for each occasion. For this reason, identify when you will send a gift and stick to it. 
• Establish the type of gift you will give: a client gift will differ from what you would give to an employee on their 10th work anniversary. Because of this, it is crucial to establish a list of corporate gift ideas. As part of this list, you should decide if there are types of gifts you want to avoid or only use for specific situations. The types of gifts are:
  • Branded SWAG with the company logo
  • Gift baskets
  • Corporate gift boxes
  • Giveaways
  • Gift cards
  • eCards
  • Gift boxes
  • Physical items like headphones
  • Custom corporate gifts
• Adapt client corporate gifts based on business provided: For clients who provide a lot of business and value to your organization, it is a good idea to gift them something more elaborate or personal. These high-value clients deserve a gift that reflects their added value.
• Establish a gift-receiving policy: As you send gifts to other businesses, they might seek to return the favor. Establishing and communicating a guideline on how your employees receive gifts is important. Is receiving a gift something you will allow? Do leaders need to be notified when a gift is sent? These are policy answers that an employee should know. 

Utilize Corporate Gifting in Your Business

As these 10 reasons for why corporate gifts are important demonstrate, incorporating a gifting program can bring added success to your company. The reasons boil down to the fact that clients and employees both want to feel like you value them. In order to do this, there must be a focus on creating positive reactions. A business gift can be a meaningful way to boost connection.