Skip the fruitcake and offer up cash — what employees want for the holidays

Tis the season to celebrate employees for a job well done. Whether with a gift card, baked goods or an office holiday party, employers have a list of rewards up their sleeves. But is that really what employees want? 

More than half of employees don't like the holiday gift their employer gives them, according to a survey by payments provider Blackhawk Network. Their research found that employees' most disliked gifts include fruitcakes, desk organizers and supplies and company-branded merchandise. 

While 57% of employees appreciate a gift at the end of the year, it's most impactful when an employer is thoughtful about their giving, says Mindi Cox, chief people officer at employee recognition platform O.C. Tanner. 

"We want to demonstrate that we care about somebody, that we've thought about them and that we have deep appreciation for them in our lives," Cox says. "Even though we're doing it at scale for a business, there's an opportunity to make it personal." 

Read more: 5 gifts to get your team into the holiday spirit

The most wanted gift is, unsurprisingly, money. Data from O.C. Tanner's annual global culture report found that the sweet spot for gift giving was between $50-500 per employee — a large range that gives employers a lot of flexibility in their offerings. But if employers choose to go this route, they must be equitable in their giving, Cox says. The holidays are not a time for a performance review. 

"I would steer away from having levels of gift giving because then it's more like a comparison. It feels like a judgment," she says. "That's not why you get together to celebrate — you get together to feel a community experience, instead of to differentiate between who got the platter and who got the gift basket." 

At O.C. Tanner, Cox works with her teams to provide gifts and rewards that address a specific need — around the holidays, the company offers gift cards for groceries, gas and holiday meals. The intention is to acknowledge the help a financial gift can offer, while providing an experience on an employee's own terms. 

"For us to say, 'Hey, things are hard right now, and we want to ease something for you,' I can't tell you how personal that felt to employees," Cox says. "Then you pick what's best for your lifestyle, with a gift card that makes sense for your life." 

Read more: How to plan an alcohol-free company holiday party

The company has extended those rewards throughout the year, too. Instead of one large gift once a year, offering smaller gifts more frequently can make a big impact. She advises other employers to consider how to make their gift-giving strategies stretch. 

"It's better to do things that are more frequent than grandiose," Cox says. "You can give $1,000 to every employee once a year, but you'd be better off creating that connection and reminding them of your appreciation in $250 increments four times a year. The frequency helps with connection and builds trust that they're seen and valued by the company." 

However, while a monetary gift can be a much-appreciated gesture, simply acknowledging employees can go a long way, too, Cox says. Taking time to recognize hard work and celebrating employees at any time of the year is beneficial, especially if employers need to scale back their gift giving strategies this year. 

"Being really honest and sincere in your messaging is huge and it will go a long way," Cox says. "Sometimes employers feel paralyzed if they're not able to live up to whatever tradition has been done in the past, but people will understand that — be honest about where you are in your business and continue to express appreciation. That's usually received very well when it's done in an honest and transparent way."