We’ve heard it all…

“Unfortunately, we don’t have the space for this in our budget right now.”
“I wish we could send people gifts, but it’s a high-risk cost with little return.”
“We need to cut corners - which means gifting has to go.”

Trust us, we fully understand. 

Times are tough. It seems as though everyone is battening down the hatches, tightening the purse strings, pinching their pennies, and hoping that the next month will be better. 

When companies face budget cuts, corporate gifts often become the first item to be cut. However, this approach can be short-sighted and counterproductive. (Yes, we acknowledge that we are biased - being a corporate gifting company and all. But stay with us here.) 

Maintaining a strong corporate gifting program is essential, and we have the data to back it up. 

Why Cutting Corporate Gifting is a Costly Mistake: The Strategic Importance of Maintaining Relationships in Lean Times

Corporate gifting is typically just one of many expenses that contribute to running a successful business. It's a wonderful way to strengthen relationships with clients and partners, onboard employees, and celebrate milestones. 

During the pandemic, intentional corporate gifting became a vital way to keep employees connected. Suddenly, gifting went from being a business tactic to an integral key to nurturing and maintaining meaningful connections.

A 2021 study conducted among 300 corporate gift buyers across a wide range of companies identified the impact the pandemic had on corporate gifting and predicted future trends in company gifting. Here are the key findings from that study: 

• 80% of companies reported that gifts have improved relationships with employees and/or clients

• 45% of companies said that one of the most substantial benefits gained was making the recipient feel valued

• 43% reported that corporate gifts improved customer loyalty

• 41% reported that sending company gifts improved employee retention by a substantial amount 

The key takeaway from the study was that, in short, the strategy of corporate gifting has undergone significant changes in the past five years. In the past, many companies viewed corporate gifts as a way to drive more sales, an investment that directly tied back to the organization. However, gifting has now evolved into something deeper and more sentimental. The benefits are all about making recipients feel seen and valued, about boosting employee retention and productivity, and building deep connections with others. 

Corporate gifting has shifted from focusing on short-term return on investment (ROI) to prioritizing long-term care in relationships. 

The Long-Term Benefits of Maintaining a Corporate Gifting Budget

Corporate gifting boosts employee morale & engagement. 

Consider how you feel when you receive a thoughtful gift from a friend. When you think about it, corporate gifting is really no different from giving a personal gift to a loved one. It develops connections through thoughtful and intentional engagement, making employees and clients feel valued and appreciated, and enhancing their connection with your company. 

The psychological impacts of gifting go well beyond the gift itself. Gifts serve as extrinsic motivators that satisfy intrinsic human needs, such as recognition and a sense of belonging within a group. This leads to higher engagement and loyalty.

Corporate gifting improves productivity & retention.

Surveys taken on the benefits of company gifts have linked a gifting strategy with increased productivity. The truth is that employees who feel appreciated are more likely to go above and beyond in their roles. 

In addition to productivity, case studies have shown that companies with ongoing gifting strategies have higher employee retention rates, resulting in a long-term return on investment. 

Corporate gifting strengthens relationships. 

Corporate gifts not only enhance relationships with employees, but also with partners and clients - relationships that are vital to maintaining a successful business. In the same way that gifting fosters trust and loyalty among employees, it also does so with clients and partners, especially during challenging times. If your company is considering tightening spending on gifts, chances are your competitors are, too, so let gifting be a remarkable way to set your company apart from the others. 

Corporate gifting is a cost-effective way to express appreciation. 

Compared with other forms of recognition or incentives, corporate gifting is a relatively low-cost way to show appreciation. Thoughtfulness doesn’t have to come at a high price tag - it can be shown through personalized or handwritten thank-you notes included with gifts, or by allowing your recipients to choose a gift they truly want within a select budget using a platform such as Moment. 

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Corporate gifting is not just a nice thing to do for others - it’s a strategic investment in the long-term success of your company. Rather than thinking of gifts as an expendable luxury, company gifting is a vital tool for sustaining engagement during challenging times. By leveraging cost-effective strategies using these tips, businesses can maximize the impact of their gifting programs without overspending.

We have an entire collection of budget-friendly corporate gifts to get you started.