Picking the perfect holiday gifts for employees can be harder than you think. You have to choose something that shows your appreciation while also being useful and affordable. This article will help you decide.
It’s the end of the year and what better way to spread the festive cheer than a bunch of employee rewards?
While yea-end rewards are a time-honored tradition in nearly every business, this year, the tradition is perhaps more important than ever. After all the uncertainty and upheaval of the pandemic, it's a great way to close off the year on a positive note.
The fact that it is perfectly aligned with the spirit of the season is an added bonus.
Since quite a few of you reading this might be working from home, you have the option of being a bit more creative this year. Tickets to online shows, on-demand classes - they're all ideal this year.
Below, I'll share some holiday gift ideas for your agency.
But before that, I'll dive into the science behind employee rewards, and how they can improve performance and morale.
Note: This article was originally written in November 2018. We've updated it to be more relevant for 2020.
The Science of Employee Rewards
Despite their prevalence, the truth is that rewards don’t always improve performance or morale. And even when they do, not all rewards motivate equally.
To understand why you first have to understand the difference between extrinsic and intrinsic motivation.
Extrinsic vs Intrinsic Motivation
What motivates you to work harder - in your job, at your hobby, or even at your home?
- If it is an external reward - better pay or a cash incentive - your motivation is extrinsic.
- If the reward is personal satisfaction and the joy of doing things right, your motivation is intrinsic.
It stands to reason that both extrinsic and intrinsic motivators impact performance. Better pay can push you to work harder. And a better work culture can help you extract improved performance.
The problem starts when you ignore intrinsic factors and rely exclusively on extrinsic motivation.
Studies show that over-relying on monetary rewards can actually reduce performance, especially on creative tasks. The prevailing theory is that attaching a monetary price to something a person would intrinsically enjoy doing “cheapens” it.
Then there is the “overjustification effect”. According to this effect, offering an external reward reduces a person’s intrinsic motivation to do a task (especially creative tasks). Instead of an internal drive, the motivation shifts to a fixed incentive. When that incentive runs out, so does the motivation.
As the authors of this study note:
“...tangible rewards tend to have a substantially negative effect on intrinsic motivation (…) Even when tangible rewards are offered as indicators of good performance, they typically decrease intrinsic motivation for interesting activities.”
For managers, the takeaway is clear: be careful when offering cash and other monetary incentives this holiday season. They might work for some tasks, but for others, they’ll just reduce employee motivation.
Cash vs Non-Cash Rewards
The first thing you should know is that your employees absolutely do want incentives and rewards during the holidays. One survey found that 37% of employees would feel valued if they received a holiday reward.
Expectations vary across industries. In the retail industry, a majority of employees don’t even expect a reward..(Image source)
What kind of rewards employees want, however, remains complicated.
Employees traditionally prefer a cash bonus. However, a study found that when offered specific non-cash rewards (such as extra vacation days), most employees chose the non-cash option instead.
More importantly, non-cash bonuses had a more positive effect on morale and happiness.
Combined with the bit about extrinsic motivation you learned earlier, this is a good enough reason to stay away from cash rewards. Employees prefer them only when they don’t have any other alternative.
Instead, give your employees something that has more lasting value - a few extra days of paid leave, a travel incentive, charity work, or even a social event.
It is the season of giving and gatherings; throwing cash into an envelope doesn’t always capture the spirit.
Individual vs Group Rewards
Most businesses reward individuals, but studies show that that might not always be the best course of action.
One study found that when teams were rewarded as a group (instead of individuals), it produced more cooperative behavior and better teamwork. Another study found that in closely knit teams, seeing their friends receive gifts helps individuals “bask in reflected glory”.
A meta-analysis of reward programs found that team-focused rewards have a bigger impact on productivity (Image source)
One solution is to reward both individuals and teams. Brooks Mitchell of Snowfly recommends a 75-25 split between individual and team rewards.
Another tactic is to offer a “prosocial” reward. With this approach, you give individuals money to spend on their colleagues instead of themselves. One study found that such prosocial bonuses improve workplace performance as well as personal happiness.
It’s easy to see why - in the season of giving, being able to give your friends at work a nice gift would make you feel happy.
So before you gift individual team members holiday gifts, think about how it will impact your teams. Perhaps you can try group or prosocial rewards to make the team feel valued as a whole.
31 Holiday Employee Gift Ideas
Now that you know the science behind choosing rewards, let’s look at some of the best holiday reward ideas for your agency.
1. A chance to gift others
Take a leaf from the "prosocial" rewards playbook and give your employees a chance to choose gifts for their colleagues. Offer each employee a cash component which they can use to buy any gift for a colleague.
It's perfect for the season of giving and will make both gifter and recipient warm and fuzzy inside.
2. A favorite food item
3. A charitable donation
Take CSR one step further this season by getting your employees in charitable work. You can volunteer time or make a contribution in the employee's name to a well-liked local charity. Not only is this a thoughtful gift, but it also fits the spirit of the season.
4. An extra vacation day
In the business holiday season, the best gift you can give anyone is time. Adding even a single day to your employees’ benefits package for the year will have a bigger impact than any cash or kind gift you can think of.
5. Give "consumable" gifts
Managers often make the mistake of giving their employees large, unwieldy gifts. Avoid this error by giving consumable items instead - high-grade olive oil, wine, gourmet foods, etc. Your employees will appreciate the lack of clutter.
6. Hobby-focused gifts
Know an employee who loves to make music? Gift her a new microphone or speakers. Such hobby-focused gifts are a great hit because they show that you know and care about the employee. Seek help from the employee's colleagues if you don't know about her hobbies.
7. Tea or coffee-focused gifts
As any agency veteran will attest, this business would collapse without a regular dose of tea/coffee. Premium tea leaves, high-end coffee beans, teapots - these all make excellent gifts. Buy them in equal proportion to both tea lovers and coffee lovers get to take their pick.
8. Indoor plants
Employees in agencies tend to be forward thinking and environmentally conscious. Give them an indoor plant to brighten up their home/work space. Make sure to pick a low-maintenance variety such as a snake plant, succulents, or jade.
9. Sports-themed goods
Your office probably has at least a few serious sports fans. Make their holidays better by giving them a bucketful of goodies from their favorite sports teams.
Once again, a gift like this shows that you care enough to learn about their favorite teams. Just make sure to not give a Lakers fan a Celtics jersey!
10. Fandom-inspired goods
I bet there are more than a handful of employees who can't stop talking about Game of Thrones and Harry Potter. Fandom is widespread, especially in pop-culture obsessed agencies.
Gift these employees goodies from their favorite comic, TV series of book. Like the sports-themed gifts, it's a good way of showing that you care about their likes.
11. Books and eBooks
When all else fails, you can always turn to books as your holiday gift. You get bonus points for picking up books that would appeal to individual employees' interests and likes.
If you want to avoid physical gifts this year, you can always gift them eBooks instead.
12. Treat boxes
Halloween might be behind us but that's no excuse to not get treats. A bunch of treats packed neatly into a box will always be a hit around the holiday season. Even if the employee herself doesn't care much about sweets, someone in the family (mostly, kids) will.
13. Restaurant delivery cards
Everyone appreciates a good meal. This is why a $50-$100 gift card for a delivery service or restaurant is a proven gift idea. Since it's delivery, your employees don't even have to worry about social distancing measures.
Bonus points if the gift card is for the employee's favorite restaurant or cuisine.
14. Craft and art supplies
Agencies are filled with creatives and what better way to make them happy than a brand new set of art supplies? Good sketchbooks, pencils, paint brushes - the designers in your agency will appreciate them all.
15. A "no questions asked" day off
Make your employees' year by giving them one day off, no questions asked. This would be in addition to their existing sick leave and vacation days. Just ask them not to take off before a crucial client presentation or launch.
16. Typography-focused gifts
There is a whole range of typography-focused gift options, from the Helvetica documentary DVD to font-themed shower curtains and posters. The creatives in your agency will definitely appreciate this gift option.
17. Pantone gifts
Creatives in your agency swear by Pantone. And while you might already have the company's color swatches, Pantone also offers a ton of other gifting options. This includes everything from coffee mugs and water bottles to foodie cookbooks and color detectors.
18. Board games
As strange as it might seem, we're in the golden age of board gaming right now. Hop over to Kickstarter and you'll see more innovative board games than you can ever hope to play in a lifetime.
Board games are a quirky gift choice, but enthusiasts will appreciate them a great deal. Moreover, you can have a gaming session with office colleagues for a great team bonding time.
19. A course or conference ticket
Few gifts will have a bigger impact than the gift of learning. Picking up new skills is particularly important in the fast-paced agency business. Help your employees learn more by gifting them a course they've wanted to take. Given the current need for social distancing, you can gift them a digital course instead.
20. Create an "upgraded" swag bag
Giving your employees a bag filled with your agency-branded tees and sweatshirts is a cheap way to get out of holiday gifting.
But what if you "upgraded" your swag by giving them personalization options as well as a choice of items?
Such upgraded swag bags will win you a lot of favor. Add a personalized note to their bag for an even bigger impact.
21. Sleep-inspired gifts
Agency work can be tough. The least you can do is make your employees' sleep comfortable. There are a plethora of sleep-inspired gifts to choose from - Beddit sleep monitor, Ostrich pillow, sleep-inducing aromatherapy candles, memory foam nap mats, etc.
22. A mobile desktop
Working at an agency is all about putting in late nights and working on the road. Make your employees' jobs easier by giving them mobile desktops. These are lightweight tabletops you can use on your lap while seated or lying down.
Perfect for those late night creative sessions.
23. Grocery store gift certificates
While being sentimental is perfectly fine, employees often appreciate practical gifts more. And what gift could be more practical than a gift certificate to a local grocery store?
Try to pick a grocery store that is close to the employee's home, or one she already visits. This way, you can guarantee that your gift will be useful.
24. Spa, gym and activity-inspired gift certificates
Continuing on the wellness theme, gift certificates for a local spa, gym, or activity such as rock climbing, mountain biking lessons, etc. are a good idea as well. Just make sure that you don't give certificates for outdoor activity if it gets cold in your area.
25. Create a mixtape for each employee
Remember how excited you used to be when you received a mixtape back in the day?
Just because you have Spotify now doesn't mean that you can't create a mixtape. A set of each employee's favorite songs (or at least songs you think they'd like) burned onto a CD and wrapped in a personalized package is a great but affordable gift.
Your people will remember the gesture far more than some cash stuffed into an envelope.
Work From Home Gift Ideas
If some or all of your employees are working from home, you'll have to be a bit more creative with your holiday gifts. Given the current situation, gifting live experiences or even physical products might not be the best idea.
In this case, try some of these work from home gift ideas instead:
1. Niche streaming service subscription
Most of your employees will likely have a subscription to at least one major OTT provider (Netflix, Hulu, Disney+, etc.). But there are also a number of niche streaming services that would make the perfect gift for remote workers.
Gift theater fans a subscription to BroadwayHD, horror fans a few months of Shudder TV, and fans of world cinema three months of access to MUBI. It's not just a relevant gift, it also shows that you care about them enough to know their likes/dislikes.
2. Online gaming subscription/coupon codes
Know a few serious gamers in your company? How about gifting them a Steam coupon so they can buy whatever they want. Or maybe you can gift them a few months of access to a multiplayer game like GTA Online or World of Warcraft.
If you have the budget, you can even consider gifting them a few months of game streaming services like Google Stadia.
3. Online courses and conferences
Learning has been a big focus across age groups and industries this year. More and more people have been trying to make better use of their free time to pick up new skills.
Try gifting your employees access to online courses. You can either gift them a coupon to a general-purpose learning website such as Udemy or Lynda. Or you can gift them access to a skill-specific course such as Codecademy.
This gift can be useful to you as an employer as well - the skills your employees learn can help you serve clients better.
4. Online fitness classes
Help your employees keep the pounds off this festival season with online fitness classes. This can either be a subscription to a group fitness class, or one-on-one fitness training with a reputable coach - it all depends on your budget.
This gift is best given to employees who you know are fitness enthusiasts.
5. A coffee machine
Since your employees aren't coming to the office, they also don't get to drink your office coffee.
Help them relive the experience by gifting them a coffee machine this year. It's something everyone can appreciate and a good one is expensive enough to feel like a substantial gift.
6. A better chair
Working from home means spending hours at your desk. While you might have state-of-the-art ergonomic chairs in your office, home offices might not be similarly well-equipped.
Fix this problem by gifting them an ergonomic chair. Again, this is a gift everyone will appreciate. It will also do wonders for their health and, by proxy, their productivity.
Over to You
You’re spoiled for choice when it comes to picking a holiday gift for your agency employees. But not every gift has the same impact. Gifting only a few individuals instead of the whole team, or offering monetary rewards can actually backfire.
Use this list of to brainstorm ideas for your gifts this holiday season. Just make sure to be quick - the holidays are right around the corner!