Giving business gifts, especially during the holidays, has become an accepted
and even expected tradition. Gifts are used to cement good relationships with
current and potential clients and customers, thank high-performing employees or
reward top executives, and cross-market to strategic partners.
But with the economy on the downswing and everyone dealing with tighter
budgets, how can you make sure your company's gift giving remains a good
investment? If you have to lay off employees, is it appropriate to hand out
gifts to the others? Does it seem wasteful?
Here are the principles and trends you should follow when giving business
gifts during these uncertain economic times:
1. Remind important people you're here for them. In the past two
months, we've watched high-profile, century-old firms declare bankruptcy, get
taken over by the government or vanish into the ether. In this business
atmosphere, clients and employees want to know your business is stable. So if
you've given corporate gifts before, give them this year, too. You'll send a
message that your business is fine. You're there for your clients, customers and
employees, and you'll be there when times are good again. If you've never given
gifts before, giving gifts this year will differentiate you from competitors who
are laying low.
2. Give gifts that people will use. Now may not be the time for an ice
sculpture of your client's head and torso. The trend this year is to return to
the classics. Food items are always appreciated and will probably be taken home
to the family and friends, with your company getting a mention for providing the
scrumptious edibles. High-end household items are a nice choice. Go easy on the
branding; if you feel the need to put your company name on a gift, keep it
subtle unless you're a high-end designer label--otherwise your gift looks like
an advertisement and will likely end up in the back of your client's drawer.
3. Greener is better. If you're giving a gift arrangement, give one
that incorporates reusable packaging, such as a magazine holder, rather than a
wicker basket wrapped in cellophane. Your employee won't know what to do with
her eighth wicker basket, and the plastic will end up in the trash. You want to
send a message that you're willing to support your best employees, but you don't
want them thinking of you while they fill their trash bins with waste.
4. Consider a charitable component. In this economy, show your
understanding that other people are hurting more than the rest of us. Give food
to a program such as City Harvest. Or, if you still want to impress, raffle or
auction a few high-end products at your holiday party and give the proceeds to
charities chosen by the winners. You'll get a tax deduction and reap some good
will.
5. If things are truly bad, get personal. So business is down
significantly. You have to cut back and maybe you anticipate layoffs. If you
want to get through this and keep your remaining employees, partners and
customers from seeking greener pastures, acknowledge the hard times and send a
gift. This may be a time to recapture the business etiquette of days past. Pen a
handwritten letter to important employees, clients or customers, and business
partners, and send it with a small but meaningful gift. It takes more time, but
people will be reassured about your core values and are more likely to be loyal.
This may be a holiday season remembered for scads of bad news. Anything
business owners can do to give their employees, partners, vendors, customers and
clients a positive image will be remembered and rewarded long after New Year's
Day 2009 has come and gone.
Greg Roberts is president of
Metropolitan
Gifts, which designs custom gift arrangements for Fortune 100 companies,
hotels and event planners.
For more ideas on what to give, see
Entrepreneur's Holiday Gift Guide.