Christmas is a magical time of year. It’s the perfect opportunity to show the important people in your life that you care. If you run a business, you need to think beyond gifts for friends and family. Your hard-working employees deserve some appreciation too.
Yet, buying gifts for employees can be tricky. How much should you spend? What types of gifts are acceptable? And how do you choose the perfect items that don’t go over your budget? Of course, every business is different, but considering the following can help you determine the perfect thoughtful and reasonably-priced gift.
1. There is No One-Size-Fits-All Budget
Not all businesses need to follow the same Christmas gift budget. Factors like business size, number of employees, company budget, workplace culture, and length of employment should all be considered for Christmas gift costs.
Think about how much your company can afford for Christmas gifts, and then determine the best way to divide the cost up among employees.
2. Set a Per-Employee Budget
In most cases, setting a similar gift budget for every employee is the best way to ensure fairness. If two employees who have been at the company for the same length of time receive gifts with obviously different budgets, it could signify favouritism.
Here are common budget ranges for different situations:
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Lower-Cost Gifts: If you have a large team or a limited budget, you might want to give out more affordable gifts to ensure everyone gets something.
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Mid-Range Gifts: Mid-range gifts are ideal in most situations because they work well for both new and long-term employees. Everyone gets a decent gift without it feeling unfair.
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Premium Gifts: If you have a small team, it’s okay to splurge a little for each gift. For bigger companies, key staff members and long-term employees often get nicer gifts than newer employees.
3. Consider the Total Cost Across the Team
Before choosing individual gifts, consider your entire gift-giving budget. If you buy gifts before figuring out your budget, you may spend too much on one gift and not leave enough aside for the rest of the employees.
When considering total cost, ask yourself the following:
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How many employees are you buying gifts for?
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Are there any delivery costs?
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Will the gifts include any personalisation?
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How much will gift packaging cost?
It’s important to look at the big picture before picking out individual gifts for employees.
4. Match the Gift Value to the Occasion
Christmas gifts can differ depending on the type of workplace and if there’s a special occasion. For example, close teams that have extravagant holiday parties might spend more on gifts than large companies with lots of remote staff.
Here are some ideas for how to buy gifts for each situation:
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Large Teams: With a large team, you might not know every employee well. Choosing more affordable gifts that a wide variety of people will enjoy is the best way to divide up your budget fairly.
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Small Businesses: If you only have a few employees that you know well, you may want to spend a little more per gift and include some personalisation.
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Long-Term Employees: Employees that have been dedicated to the company for years may appreciate higher gift expenses and more personalisation than new employees.
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Managers or Senior Staff: Like long-term employees, you may want to give managers and senior staff more luxurious gifts to thank them for their important roles and hard work.
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Remote Employees: If you’ve never met your remote employees in person, low-cost gifts can be great as long as they’re still thoughtful. You’ll likely need to consider packaging and shipping costs with these gifts.
Not every company fits into one box. So, while this can give you a starting point, it’s important for you to consider your own employee relationships.
5. Avoid Creating an Awkward Difference Between Employees
If employees work closely together, there’s a good chance they’ll talk about the gifts they received. Make sure gifts are consistent and fair across teams to prevent someone from feeling left out or undervalued.
Gifts can vary based on the position and the length of employment, but two employees who have been in the same position for the same length of time should receive gifts of similar value.
6. Focus on Perceived Value, Not Just Price
Just because a gift fits into a tight budget doesn’t mean it has to look cheap. Most people won’t know the exact cost of a gift just by looking at it. So, rather than stressing over the price too much, look for gifts that will seem high value even if the actual price is a good deal.
Choosing high-quality, relevant items can make them seem worth more than what you paid. Elevating the presentation, such as offering an elaborate basket or using elegant wrapping paper, can improve perceived value too.
7. Christmas Hampers as an Employee Gift Option
If you’re struggling to decide what to get for your employees, consider Christmas hampers. They provide a variety of luxurious items and a beautiful display for a good deal.
Christmas hampers are great employee gifts for several reasons:
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Suitable for a wide range of budgets
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Feels more substantial than a single item
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Can be shared between staff members
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Easy to send to remote employees
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Can include a variety of items, including snacks, drinks, and treats
8. When Should You Spend More?
When considering your budget, it’s okay to spend more in certain cases. Rewarding long-term staff, celebrating a strong year, gifting a small team, and recognising key employees are all great reasons to splurge on a quality Christmas gift.
You know your company better than anyone, so consider your employees and business details to help you settle on the perfect Christmas gift budget. From there, you can decide if you’re able to go above and beyond to celebrate your team this holiday season.
Choose the Right Christmas Budget for Your Company
There isn’t one right answer for company Christmas budgets. Every business is unique, so one fixed budget doesn’t consider all your company details. Your business type, company size, earnings, and workplace culture can all help you decide how much to spend.
Take your time, be thoughtful, and keep things fair when selecting a budget and gifts. If you want to elevate your gift-giving with a stunning Christmas hamper, check out Milly & Henry for a variety of gift collections for every price point.