Last week, I had the good fortune to be onsite with a client on the day the company handed out its holiday gifts to employees. As I sat in the reception area, I watched countless employees excitedly walking to pick up their gift, and wearing huge grins after they’d retrieved it.It got me thinking – this relatively small gesture can make a big difference in overall employee satisfaction and engagement. I will never forget, early in my career when my boss got everyone on our team Palm Pilots – cutting-edge technology at the time! In the grand scheme of things, it was a relatively small expense for the company, but made us all feel that our hard work was appreciated, and certainly boosted our engagement and commitment.According to this article, companies spend an average of $42 on gifts for employees, ranging from electronics to restaurant gift certificates to extra paid time off. If you’re charged with selecting holiday gifts for your company or team, keep the following tips in mind:

• Be aware of company policies around gift giving. Most companies – especially those in more heavily regulated industries like pharma – have rules and guidelines for employee gifts.
• Keep it equitable. All employees at all levels should receive the same gift to avoid resentment or hurt feelings.
• Be tactful. You can never please everyone, but give careful consideration to your gift choices to avoid offending or upsetting anyone.
• Make sure your gift selection aligns with the current business environment. If you’ve been cutting costs or employee benefits during the year, an extravagant gift at year-end can seem contradictory or even offensive. Likewise, if you’ve been touting outstanding results, a nominal gift might be a disappointment.

What’s the best company gift you’ve ever received? What is your company giving out this year? Looking forward to your thoughts and ideas in the Comments section below!