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It is getting close to that time of year where we have to think about Christmas but what does that mean for you as a company, do you give your staff gifts?

Every one like to receive appreciation and indeed it can offer significant benefits for morale and retention, however, must navigate potential drawbacks such as tax implications, the risk of appearing impersonal and inappropriate gifts.

Some of the pro’s of give giving include:

• Boosts Morale and Motivation: Gifts make employees feel valued and seen, which significantly increases job satisfaction, enthusiasm, and motivation to perform well.
• Increases Retention and Loyalty: Employees who feel appreciated are less likely to leave, reducing costly turnover and helping the company retain top talent.
• Fosters a Positive Culture and Stronger Bonds: A culture of appreciation builds trust and respect between employees and management, leading to a more collaborative and positive work environment.
• Enhances Productivity: Valued and motivated employees tend to be more engaged and productive, which translates to better performance and business success.
• Tax Efficiency (if managed correctly): Small, non-cash gifts meeting specific HMRC “trivial benefits” criteria (costing £50 or less, not performance-related, not cash or cash vouchers) are exempt from tax and National Insurance for both the employer and employee, making them a cost-effective form of reward.
• Attracts Talent: Companies known for valuing their staff build a strong employer brand, making them more attractive to potential new hires. 

Some of the con’s include

• Tax and Legal Complexities: Gifts exceeding the £50 “trivial benefits” limit or those linked to performance become fully taxable as a benefit-in-kind, creating unexpected tax burdens and administrative work (P11D forms or PSAs) for the employer.
• Risk of Appearing Impersonal or Inappropriate: Generic or ill-thought-out gifts (e.g., a food hamper for someone with dietary restrictions) can feel impersonal and counterproductive, making employees feel like “just a number”.
• Potential for Perceived Favouritism: If the gifts or recognition are not perceived as fair or consistently applied across the team, it can breed resentment, unhealthy competition, and demotivation among employees.
• Focus on Rewards over the Work Itself: An overemphasis on tangible rewards may cause employees to focus solely on achieving the reward rather than the quality of their work or team goals.
• Budget Issues and Expectation Management: Maintaining a consistent gifting program requires a budget. If the frequency or value of gifts drops due to budget constraints or “program fatigue,” employees who have come to expect them may become more demotivated than if no gifts had been given at all.
• Administrative Burden: While e-gifting can be easy, managing a physical gifting program for a large or remote workforce can require significant time and resource

Show your team some well earned appreciation this Christmas with gifts that actually mean something.

🎁 Thoughtfully curated
🎁 Sustainably sourced
🎁 Branded to perfection

A little gratitude goes a LONG way. 79% of employees say feeling appreciated boosts motivation

Make sure everyone on your list feels truly valued this year.