Why is Corporate Gifting Important in 2024? [10 Reasons]

Did you know that the search demand for the term “corporate gift” on Google is more than 40,000 searches per month?

This single statistic alone highlights that startups and companies seek corporate gifting options.

Not only that, the corporate gifting industry market is expected to reach $242 billion by 2024.

Now, the question is: Why do companies invest heavily in corporate gifting? What are the benefits in terms of ROI?

To answer these questions, we have compiled why corporate gifting is important for growing brands and companies.

What is a promotional or corporate gift?

A promotional or corporate gift is a gift item given by a company to employees, clients, potential customers, or business partners with the goal of:

• Improving employee engagement
• Increasing productivity
• Promoting customer loyalty
• Building healthy relationships with clients, and so on

10 reasons why corporate gifting is important for your business

1. Corporate gifting improves employee engagement level

Some of the most influential business people are convinced that corporate gifting helps to increase employees’ productivity. If employees are appreciated and recognized, they will work harder and remain loyal to the company.

This makes a lot of sense because when employees are given thoughtful gifts, they feel appreciated, making them work harder to maintain a positive relationship with their employer.

What does research say: Deloitte found that companies with recognition programs have 31% lower voluntary turnover and better employee engagement than those without such programs.

2. Rewards and gift items deepen connections with clients

Gift-giving can be used to strengthen the bond between the firm and its clients, thus improving the clients’ loyalty.

When choosing gifts, it is recommended that businesses choose personal and meaningful gifts. This way, businesses can show that they care, and this will create a bond of trust. This personal touch is particularly important in long-term business relationships and can become the key factor in choosing between companies.

What does research say: According to the survey, 80% of corporate gift buyers said gifts enhanced their relations with clients and employees.

👉 Order employee recognition awards and trophies

3. Corporate gifting helps you attract and retain top talent

Business gifting is a critical talent acquisition and management tool, especially today. On the first day of work, it is possible to give personalised gifts to make the new employees feel valued from the onset.

Here’s how it works:

Using Welcome Gifts

A tech firm could offer new hires a high-quality noise-cancelling headset as a welcome gift. This showcases the company’s investment in employee comfort and productivity, setting a positive tone and making the new hire feel valued.

Milestone Rewards

For retention, the company could implement a milestone reward system. Employees could receive personalized experiences (like a spa day or concert tickets) at key anniversaries, reinforcing long-term commitment and appreciation.

Also, when existing employees share their new joinee or gift kits on social media, it helps attract top talent because it grabs the attention of many. Also, a new joinee kit improves the onboarding process, which is a good sign for the new employee.

What does research say: For example, in Canada, employees are allowed to be given gifts of up to $500 per year tax-free, which would help in enhancing the value of the employees even more in the company.

4. Corporate gifts help in employee recognition and morale boost

Recognition must be done early enough so that the morale of the team members can be boosted. Corporate gifting can be used as an addition to traditional recognition programs.

People who feel appreciated at their workplace will likely be happier and more committed to their jobs.

What does research say: A Bonusly study found that 71% of highly engaged companies recognize employee achievements, compared to only 41% of less engaged firms.

5. Increase your brand visibility with corporate gift campaigns

Corporate gifts end up on social media platforms, which increases brand awareness. The gift experiences shared by employees and clients on social media platforms also help market the company to others.

Here’s how it works:

An organization could distribute eco-friendly laptop bags featuring their logo to clients and employees. Employees who use these bags in offices, conferences, and while commuting expose the brand to a broader audience.

These passive corporate gift campaigns increase brand recognition—helping attract new clients and generate word-of-mouth referrals.

6. Welcome your new employees with a new-joinee gift kit

The welcome gift should be carefully chosen so the new employee feels they are part of the company. This first move creates a favourable impression and shows the company’s appreciation for its employees right from the start.

For instance, pictures of welcome kits posted on social media pages such as LinkedIn by the employees increase visibility and help attract the best talent by demonstrating the company’s commitment to its employees.

Here’s an example of an employee sharing their welcome corporate gift kit on social media:

What does the research say:

Since 35% of companies use corporate gifts for employee onboarding, this practice shows that companies want to make new employees feel welcome and appreciated from their first day at work.

👉 Order budget-friendly new joinee kits

7. It helps you set an organizational culture

Corporate gifting can be used to create and remind people of the company’s organisational culture. By constantly selecting gifts that align with the company’s values and organizational culture, organizations can convey the company’s priorities and appreciation of its employees.

For instance, environmentally friendly gifts can emphasize the company’s environmental conservation agenda. In contrast, gifts related to health can be used to demonstrate the company’s care for the health of its employees. Such alignment of gifting with the company values enhances the organizational culture and cohesiveness.

8. Corporate gifting promotes a healthy relationship with B2B clients and vendors

Gifting can benefit not only clients and employees but also B2B relations.

By providing gifts to business partners, organizations can show their appreciation, foster better relations and lay a good foundation for business relations. Such gestures can set you apart, making you the preferred partner among the competitors.

For example, the US corporate gifting market has grown rapidly post-pandemic as companies have realized that gifts are essential for developing and consolidating B2B partnerships.

9. Get a higher return on investment (ROI) from gifting

Corporate gifting is not just an expenditure but a tool that can benefit a company.

For instance, firms that incorporate corporate gifting approaches in their operations will likely experience increased customer loyalty and retention.

When corporate gifting is positioned correctly to support the company’s objectives, the benefits are significant and can manifest in many areas of organizational performance.

👉 Here’s an example of how to measure ROI for corporate gifting to employees:

A tech company invests $20,000 in an employee gifting program. To measure ROI, they track:

1. Employee turnover rate: Decreased from 15% to 10%
2. Cost of replacing an employee: $10,000
3. Employees retained: 10 (out of 200)

Calculate ROI:

• Savings: 10 employees × $10,000 = $100,000
• Net benefit: $100,000 – $20,000 = $80,000
• ROI = (Net benefit / Cost) × 100 = ($80,000 / $20,000) × 100 = 400%

This 400% ROI demonstrates the program’s success in improving retention and reducing costs.

10. Increasing productivity and loyalty in remote work

As more and more employees work from home, corporate gifting has emerged as a way to engage with employees who are not physically in the office. Employees working from home or in other distant locations feel they are still part of the organization when they receive gifts.

Here are some ideas that you can implement using corporate gift items:

• Send personalized gifts to remote employees’ homes
• Use digital gift cards for instant recognition
• Implement a points-based reward system for achievements
• Offer subscriptions to productivity or wellness apps
• Provide budget for home office improvements
• Arrange virtual team-building activities with shared experiences
• Create custom care packages aligned with company values
• Use automated platforms like TapWell to manage and track gifting programs

How to Get Started with Corporate Gifting for Your Business?

Having learned the various advantages of corporate gifting, you may be asking yourself how you can incorporate corporate gifting into your business. Here is a simple guide to help you begin the process.

Plan your goals and objectives.

However, it is important to note that before you start choosing gifts, you should define the aims and objectives of your corporate gifting strategy. What is your goal? Do you want to boost the morale of your employees, retain your clients, celebrate milestones, or enhance your brand visibility?

For example: 

If your goal is to boost employee morale and motivation, especially for your remote workforce, consider sending personalized care packages that include:

• A handwritten note from the CEO or their direct manager
• High-quality snacks and beverages
• A company-branded item like a mug, t-shirt, or notebook
• A gift card for a meal delivery service or online retailer

Set a budget

Once you set your goals, establish a budget for your corporate gifting. When planning the budget, consider the number of people who will be targeted and the frequency of the gifting.

The price of the gift is not as important as the idea behind it and how suitable it is for the person you are giving it to. It will be important to set a realistic budget to ensure that expenses are controlled while at the same time ensuring that the gifts given will have the most effect.

Let’s say you have 50 remote employees and want to send quarterly appreciation gifts.

Here’s how you can set a realistic budget:

• Determine the total number of gifts needed per year (50 employees x 4 quarters = 200 gifts)
• Set a budget per gift, for example, ₹350 per gift
• Calculate the total annual budget (200 gifts x ₹350 per gift = ₹70,000)
• Divide the total annual budget by 4 to determine the quarterly budget (₹70,000 ÷ 4 = ₹17,500 per quarter)

Explore corporate gift ideas from our thousands of product inventory

Next, consider the wide range of options for corporate gifts. Tapwell has products to suit different tastes and corporate colours.

Whether you plan to send environmentally friendly products, electronics, travel products, or gourmet gifts, our selected categories will help you find the best gifts for any occasion.

Check out our stock to select the appropriate corporate gifts that reflect your company’s goals and principles.

Contact Our Gifting Strategist

For the best results in your corporate gifting program, it is advisable to seek the services of a gifting specialist. At Tapwell, our specialists can assist you in selecting gifts that will meet your branding, goals, and the target audience’s expectations.

They can also help with transport so that the items arrive at their intended destination on time. It is advisable to consult a gifting strategist to make the process easier and ensure that the gifts given will have the most effect.

Request a Brochure and Proposal

To learn more about the available options and to have them customized, please fill in the brochure and proposal request form for Tapwell.

This document will outline the gifting packages, the available customization options, and the prices so that you can make the right choices. This will eliminate confusion, and your gifting program will align with your strategic plan.

Get Your Corporate Gifting Delivered to Your Location or Employee Location

Last but not least, after you have chosen your gifts and agreed on all the specifications, Tapwell will arrange the delivery.

We make gifting hassle-free if you require gifts delivered to the workplace, employees’ residences, or clients in different places. Our delivery system ensures that your gifts are delivered in good condition and within the agreed time, making the recipients feel special.

Conclusion

Business gifting is a highly effective and flexible method that can influence different spheres of your company’s activity, including employee motivation and customer loyalty, brand recognition, and partnership. Corporate gifting can be integrated into your business processes in the right manner.

In that case, it will be possible to record high levels of employee satisfaction, better relations with clients, and, therefore, improved business performance. Are you ready to take your corporate gifting to the next level? Go through the detailed process of using Tapwell and begin reaping the value of purposeful giving right now.