Posted on: Wednesday, November 17, 2004

Gifts show employees they are valued

By Joyce M. Rosenberg
Associated Press

NEW YORK — As many small-business owners put their holiday gift lists together, they make sure their employees are right at the top.

"I really take good care of these people," Cynthia McKay said of her 28 employees at Le Gourmet Gift Basket Inc. in Castle Rock, Colo., near Denver. "They really represent me so well."

Business owners interviewed for this story said giving gifts to employees goes a long way toward fostering goodwill. That's because validation from the boss in the form of a gift is often reciprocated with hard work.

And, as McKay put it, "I perform better as a CEO with consistency and loyalty" from employees.

Debra Caruso, owner of DJC Communications, a New York public relations firm, said she gives a gift to her sole employee "to show appreciation ... and because it's the right thing to do."

Not giving a gift is a terrible idea.

"If you don't, it really sends a very poor message that you are so busy thinking about everyone else — they see you bending over backward for clients," said Heather Gulino, owner of Chandler Public Relations in Redondo Beach, Calif. "I feel it's really disrespectful. ..."

What you give also conveys a big message, and can nurture your relationship with your workers.

Gulino, who has four employees, plans to give them individual but similar gifts, chosen with their personal interests in mind. She wants her workers to know she values them beyond their abilities at work.

McKay spends quite lavishly on her employees. Her workers and their spouses are transported by limo to dinner at a classy restaurant; they get a certificate for a day spa and half a day off; and they either get cash if they're in town for the holidays, or plane fare to visit their families with their spouses.

It sounds like a lot of money, but McKay said: "I want them to give me longevity. The gifts are less expensive than the cost of employee turnover."

Many business owners give cash or a gift certificate, understanding that many workers would rather have money to spend as they please.

Do not, under any circumstances, give employees something that has "cheap" or "I don't care about you" written all over it.

What you give to your employees is, of course, going to be dictated by your company's resources and the number of employees. If it's been a difficult year, you might not feel there's much money to spare. And the larger your staff, the harder it is to make individual gift selections.

But you can still find ways to make employees feel appreciated. You can give relatively inexpensive gifts — for example, certificates for free turkeys at a local supermarket.