- Jessika Noda Ofiyai
How Strategic Gifting Drives ROI
Updated: Jan 31
Photo by Jason Goodman on Unsplash
It’s hard to argue against the social value of gift giving: after all, who doesn’t feel good when receiving a carefully-chosen gift from their business partner, client, or employer? Employee rewards and corporate gifting strategies can generate warm feelings, but that’s not all. Learn how thoughtful gifting can also benefit your company’s bottom line.
Reducing turnover and increasing engagement with employee rewards
Salary, benefits and growth opportunities are obvious draws for any company trying to attract and retain talent, but if you ask workers themselves, more than half will tell you that it’s recognition that keeps them loyal and engaged.
Recognition matters. According to data compiled by Achievers Workforce Institute and reported in Benefits Canada, 57% of surveyed workers said that feeling recognized by their company would reduce their chances of looking for a job elsewhere, with 67% adding that they prefer meaningful recognition over frequent praise.
A separate study by Eagle Hill Consulting, also reported in Benefits Canada, came to similar conclusions. “Our research signals that employers need to double down on employee recognition programs,” said Melissa Jezior, president and chief executive officer of Eagle Hill Consulting, in a press release. “Far too many employees are burnt out from their workload and say they aren’t recognized for their efforts. Failing to acknowledge workers is a recipe for subpar organizational performance and high attrition, the last thing employers need in a volatile economy.”
She’s right: a 2019 Gallup poll indicates that inadequate recognition is the number one reason employees leave, with 79% of recent job-quitters saying they left because they didn’t feel appreciated.
While some may balk at the costs of employee rewards, the price of attrition is much greater—Simply Benefits reports that it costs between 30-50% of annual salary to replace an entry-level worker and up to 400% to replace a high-level or specialized employee.
Although the price of inadequate appreciation is high, the good news is that the rewards of a good employee acknowledgement program are even higher.
“Those organizations actively seeking to improve employee engagement, including through the use of formal and informal recognition, financially outperform their competitors,” reads a report from the Incentive Research Foundation. Similarly, a Gallup study compared the top quarter of businesses with high employee engagement versus the bottom quarter with low engagement. Engagement alone was correlated with 18% more sales and 23% more profitability.
The Eagle Hill Consulting survey supports this data, with 47%