Employee Gifts and Staff Engagement – The statistics to back up corporate gifting

You know that promotional products aren’t only for external marketing. A recent study by the PPAI (Promotional Product Association International) has reported that US brands are spending $4.3 billion on employee relations and gift-type products. They recognise the link between employee gifts and staff engagement. They’re betting big money on it. If you want your workforce to work harder for you, one thing you can do is show appreciation through corporate gifting!

According to the 2019 Deloitte Millennial Survey, those born between 1980 and 2000 make up 40% of Australia’s current workforce. So either you are one or you’ve got one on your team. This generation has developed great flexibility when it comes to education, technology and employment. Therefore they are accustomed to fast-paced developments and great leaps in accepted knowledge and understanding.

The millennial age group is more aware of global issues as a result of being constantly connected to media. The never-ending stream of biased messaging and advertisement has fostered distrust towards government and business motives. Of the most commonly used advertising channels, print, is the least effective when trying to capture the millennial consumer. Promotional products are the most effective. The statistic for this is impressive – 88% of surveyed millennials would be more likely to do business with a company from whom they received a promotional product.

Studies have shown that almost every single millennial has received a promotional product in their life – approximately 30% have received between one and five promotional products in the last six months.

Effective branded merchandise will fit seamlessly into the life of the one who receives it. We’ve all gotten busier in recent years, so nothing should need to stop for an effective advertisement to be seen. The PPAI’s consumer study reported that 86% of millennials will keep a product they deem practical. Furthermore, 48% will hold onto a product that suits their personal style or personality and 31% will keep it if it carries a personally relevant message.

Standing out in an ever increasing and connected population is difficult. So if an individual is gifted something that speaks to their personality and helps them express their individuality, they’re sure to incorporate it into their lives.

Referencing the overall workforce, promotional products are also extremely effective for internal branding. If you’ve read our article about successful internal marketing, you’ll know that consistent messaging is vital. So vital, in fact, that 98% of employees have greater confidence in their employers when external and internal marketing are in sync.

In our first paragraph we stated that $4.3 billion is spent on employee relations and gift-type products. In 2017, the largest percentage of promotional products sold were used for employee relations at 18.5%. Business gifts were third, at 12.7%. That sum and consistent investment in internal promotions must indicate some correlation between employee gifts and staff engagement.

Deloitte found that as trust in business leaders diminishes, trust in employees grows. Employers are therefore trying to strengthen employee engagement and brand advocacy. Their aim is to let the genuine enthusiasm of their workforce do the talking. The PPAI’s study into the role of promotional products in the US workforce reported that companies with engaged employees out perform those without. The margin is 200%, saving $550 billion in lost productivity. Employee engagement can stem from staff knowing they are appreciated.

Demonstrating to your staff that they matter and that the work they do is valuable will be reflected in their future efforts. It will also show in the way they represent your company out-of-hours. The majority of employees (90%) are proud to represent their company publicly, so there’s no need to be shy about the merchandise you provide them with. However, the products with which you gift your employees should be thoughtful. As stated earlier, the more practical and relevant they are to your staff, the more use they will get and the more integrated your brand will become in their lives. Logically, the more staff are instinctively on-brand, the better they represent company values and are able to build your clients’ trust.

Showing you value their work and contributions to your business through corporate gifting is an effective way to retain great staff. PPAI found that 57% of the US workforce would stay with a company that provide promotional products to their employees. This figure is even more significant when considering the 1980 – 2000 age group. Millennials, who make up a significant portion of the workforce, are shown to only stay with a company for two to five years before moving on to a different opportunity. Staff retention and engagement then, is shown to be improved with corporate gifting.

There’s no need to be stuck for ideas. Below are some of the best employee gifts for staff engagement. All are able to be branded and personalized using the various decoration methods available. Contacts us for more ‘out-of-the-box’ ideas.