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Glossary Terms
Glossary of Human Resources Management and Employee Benefit Terms
Table of contents

Employee Gifts

Employee gifts refer to tangible items or experiences given to employees by their employers as a token of appreciation, recognition, or reward for their workplace contributions, achievements, or efforts. These gifts allow organizations to express gratitude, boost morale, and enhance employee engagement.

What is the definition of employee gifts?

Employee gifts are tangible expressions of appreciation and recognition bestowed upon employees to enhance workplace engagement, motivation, and morale. These tokens of gratitude can take various forms, ranging from monetary rewards to personalized gifts and experiential opportunities.

Employee engagement is crucial for organizational success, and thoughtful gifts are pivotal in fostering a positive work environment. Recognizing and appreciating employees through gifts contributes to their satisfaction, motivation, and organizational commitment.

What are some employee gift ideas for different occasions?

Choosing the right gift depends on the occasion. Whether it’s a work anniversary, holiday, or team success, the right employee gift idea can strengthen relationships and enhance workplace culture.

Employee gift ideas include:

  • Holiday employee gifts like gourmet hampers or wine sets
  • Onboarding kits for new hires
  • Personalized mugs, journals, or tech gadgets
  • Team-building experiences or lunch vouchers
  • Wellness boxes with candles, teas, or self-care products

What are some good employee gifts to boost morale?

Gifts that acknowledge effort and celebrate individual achievements are always appreciated. Good employee gifts don’t have to be expensive—they just need to feel thoughtful and relevant.

Good employee gift ideas:

  • Customized thank-you notes with a gift card
  • E-book or learning platform subscriptions
  • Relaxation kits (aromatherapy, stress balls, etc.)
  • Branded wireless chargers or headphones
  • Public recognition paired with a keepsake

What are some of the best employee gifts companies give?

The best employee gifts show appreciation while reflecting the company’s values. They are often personalized, useful, and aligned with the employee’s preferences.

Best employee gifts examples:

  • Branded laptop bags or backpacks
  • Extra paid time off or flexible working vouchers
  • Experiences like concert tickets or Airbnb credits
  • Premium drinkware or smart desk lamps
  • Curated gift boxes for remote employees

What are unique employee gifts that make a lasting impression?

Unique employee gifts stand out because they are personal, fun, or memorable. They show the employer took extra care to select something beyond the usual.

Unique employee gifts include:

  • Mini-me bobbleheads or caricatures
  • Customized puzzles or game kits
  • Indoor plants with engraved pots
  • Engraved kitchen tools or barware
  • Subscription boxes for books, snacks, or hobbies

What are the best corporate employee gift ideas for teams?

Corporate employee gifts should be scalable yet meaningful. They should reflect appreciation across departments without compromising on quality.

Corporate employee gift ideas:

  • Bulk employee gifts like branded notebooks and pens
  • Company swag kits (hoodies, water bottles, stickers)
  • Group virtual experiences (mixology class, trivia games)
  • Donation made in the employee’s name
  • Snack or coffee gift boxes

Are employee gifts taxable?

Yes, in most cases, employee gifts are considered taxable. However, exceptions apply to gifts that fall under the “de minimis” threshold or are of nominal value.

Taxable scenarios include:

  • Gift cards (always taxable)
  • Expensive merchandise or travel vouchers
  • Cash rewards or bonuses disguised as gifts
  • Gifts exceeding IRS allowable limits

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Are employee gifts deductible for companies?

Employee gifts are deductible as business expenses under certain conditions. To qualify, the gift must be directly related to the business and reasonably priced.

Deductibility points:

  • Up to $25 per employee per year is typically deductible
  • Promotional items with a company logo may qualify for a higher limit
  • Meal or entertainment gifts may fall under different categories
  • Proper documentation and receipts are required

How much should you spend on employee gifts?

Budgeting for employee gifts depends on company size, culture, and the reason behind the gift. A consistent budget helps maintain fairness and manage expectations.

Suggested budget ranges:

  • $20–$40 for birthdays or onboarding
  • $50–$100 for holidays or work anniversaries
  • $100+ for major milestones like retirement or promotions
  • Bulk employee gifts for events can have tiered pricing

How do you categorize employee gifts for internal reporting?

Proper categorization of employee gifts ensures compliance and clarity during audits or budgeting reviews. Gifts may fall under HR, operations, or marketing expenses depending on the type.

Gift categorization examples:

  • “Staff Welfare” for holiday employee gifts
  • “Recognition & Rewards” for performance-based gifts
  • “Marketing Expenses” for logo-branded corporate employee gifts
  • “Training & Development” for educational subscriptions
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