Archer Chiang, founder and CEO of Giftpack, believes that traditional employee retention methods can be costly and ineffective. Employee turnover can lead to significant expenses for businesses, including recruiting, training, and productivity losses. Traditional retention strategies such as salary increases, bonuses, and benefits packages can be substantial investments. However, corporate gifting can offer a cost-effective alternative to these traditional methods.
Chiang highlights the potential costs associated with turnover, with an average of $4,700 per hire and a national turnover rate of 17.3%. This could lead to annual losses of approximately 17 employees and recruitment expenses exceeding $79,000 for a company of 100 employees. Traditional retention programs such as salary increases, bonuses, and benefits packages can help retain employees but can also be expensive. Corporate gifting initiatives can provide a more budget-friendly retention practice that complements these traditional programs.
Chiang emphasizes that personalization is key when it comes to corporate gifting. By tailoring gifts to individual preferences and interests, employers can demonstrate thoughtfulness and create memorable experiences for employees. Recognizing personal milestones such as birthdays, anniversaries, and other occasions can show employees that they are valued and appreciated. Integrating a corporate gifting program into existing HR systems can streamline the process and ensure consistency and efficiency in gift selection and delivery.
Chiang suggests that corporate gifting can enhance relationships and contribute to employee satisfaction and retention. By incorporating personal touches such as handwritten notes and custom packaging, employers can create a meaningful gifting experience. Acknowledging employees’ personal milestones shows that employers care about them as individuals. Ultimately, corporate gifting can provide a personalized and enjoyable way to show appreciation for employees without breaking the bank.
In conclusion, Chiang believes that corporate gifting can serve as a valuable retention strategy for businesses. Unlike traditional retention methods that may be costly, corporate gifting offers a more personalized and meaningful approach to showing appreciation for employees. By finding ways to prioritize employee satisfaction and retention, businesses can leverage corporate gifting as a cost-effective and impactful tool in today’s competitive business environment.
