Don't Cut The Gifting Budget

We hear it far too often, and it shouldn’t be the case. The gifting budget is often the first thing to get cut when money is tight, but before trimming the funds allocated to reward, motivate, and thank your most valued partners, consider what the gift truly represents. The cost of skipping the gift—or giving a less meaningful one—often far outweighs any short-term savings.

A gift is generally defined as something given voluntarily to someone without expecting anything
in return, but let’s be honest, when in a Corporate setting, gifts typically serve a purpose. Though
seen as a gesture of appreciation, goodwill and relationship-building, Corporate gifts actually
motivate behavior, strengthen brand awareness and foster loyalty. You’re not just handing out a gift.
You’re reinforcing culture, appreciation, and purpose. And nothing does that better than a Tangible
Gift.

Corporate Gifts can be used for Client and Partner Appreciation, fortifying their loyalty and
collaboration. Rewarding Employees for achievements and milestones keeps them engaged and
connected. Annual and on-going gifting encourages long-term partnerships and all the while,
every gift is promoting your company brand, strengthening brand awareness and amplifying your
company values.

A corporate gifting budget varies based on factors such as company size, the goal of the gift, and whether it’s personalized or premium. For incentive programs, it’s often more effective to invest a bit more per person on fewer, high-quality gifts rather than distributing many lower-value items, as this boosts perceived value and impact. On average, companies spend around $75–$125 per client gift and about $50 per employee annually. When budgets are tight, personalizing gifts is a smart strategy to make each item feel more thoughtful and valuable.

Hitting a milestone and earning an Incentive Trip are both achievements, but a tangible reward is more than hoped for, it is expected. People like a memento, something to be remind of the milestone or the experience; it makes the achievement real, memorable, and emotionally resonant.

A tangible reward gives form to something abstract (like recognition or success). It’s something you
can see, touch, or experience, which helps your brain and emotions anchor the accomplishment
more deeply. They serve as ongoing reminders of that success, it becomes a symbol of value, effort,
and appreciation.

When people are rewarded in a concrete way, it reinforces behavior and encourages repeat
performance. It sends a clear message that success is recognized and worth pursuing again. They
also give people a way to share their success socially, which further boosts morale and team culture.
While verbal praise is important, tangible rewards validate success in a way that feels more official or
earned. It removes ambiguity—there’s no “Did anyone notice?” when there’s a certificate, keepsake or
a unique item involved.

So why would you want to cut a budget that does all that? Gifts serve as tangible rewards for
achievements. They physically reinforce the achievement, create a lasting symbol of that achievement
that boosts motivation, has an emotional and social impact and makes the recognition feel more legitimate.

In addition to removing the achievement validation, cutting the gifting budget can erode goodwill and make relationships feel transactional. Strategic gifts reinforce collaboration and trust, so when they are removed its hard to keep retention and morale up, its harder to stay front of mind with current clients or to earn any new business from secured loyal ambassadors.

Gifting is a low-cost, high-impact marketing tool compared to traditional advertising. A well-targeted gift can start conversations, spur referrals and create lasting impressions. In industries with longer sales cycles, the touchpoints created by gifting can be critical. Even if the company logo is not blazoned all over it, people tend to ask about nice things and most people are all too happy to share where they got it and about their achievement. I talk about the Dyson vacuum my husband’s company got us all the time. Thank you Siemens!

And the Return on Investment has been proven over and over again. Customer Retention - up, Employee
Retention - up, Brand Perception - up. Gifts work. Period. So when I hear that they are “Cutting the
gifting budget”, I want to rattle off facts like Reducing gifting can Decrease customer retention
(which is often 5–7x cheaper than acquiring new customers). It can Lower employee engagement,
leading to higher turnover and recruitment costs. It 100% Reduces brand recall and loyalty. And it can
absolutely send the wrong message and create a negative perception. Are the short-term savings worth
all of these long-term losses? And honestly, its hard to restart once its cut. Clients, employees, and
partners will notice the absence of gifting, even if they didn’t really mention much when they were
receiving the gift. The absence of the gift speaks a lout louder than the Company thinks. Restarting the
program later can feel inconsistent or forced—making it harder to regain trust.

So when planning your next Corporate Meeting, I implore you to remember all that a gift can signify
before cutting the budget. Gifting is a tangible acknowledgment of their sacrifice to be at the event.
Employees and attendees are giving up time—often outside regular work hours or away from their families. A gift values that time. Without it, the event can feel like an obligation instead of a privilege. Gifting is a key moment of appreciation that reinforces company culture and values. Without it, you risk sending the message: “You’re here only to work, not to be appreciated.”

Meetings Are About Morale, Not Just Metrics Corporate events are a chance to inspire, align, and energize your team or partners and gifting sets the tone for the event. First impressions matter — a welcome gift, swag bag, or thank-you item creates excitement and sets a positive, appreciative tone. It shows the company cares about the experience, not just the agenda.

Ultimately, the expectation has been established. In most industries, Corporate attendees expect some form of gifting, especially if the event includes travel, long hours, or strategic planning. Cutting that budget can create disappointment, which directly undercuts the purpose of the meeting: motivation and alignment. Again, it sends the Wrong Messages. It devalues employees and partners time. It lowers morale and motivation, make the event feel more transactional and a lot less inspirational. It undermines a message that people matter as much as, if not more than, metrics.

Quality gifts don’t have to break the bank! Even modest, well-branded, or personalized items can increase engagement, boost post-event sentiment, and serve as lasting reminders of shared goals and company culture. A small investment can deliver a big return. At Brand-Marked Joy, we specialize in helping companies make every gifting occasion achievable—regardless of group size or budget. Let us help you make everyone feel special, valued, and connected, while fostering loyalty and strengthening your brand. Reach out Today!