Labor shortages, delays at U.S. ports, and the rise in demand for the upcoming holiday season have created a perfect storm of logistical issues. Many people are aware that this shortage affects the ability to get ahold of everyday items, such as an appliance for the home or a gift for their child, but it also has a major impact on employee gifting. This unprecedented situation in the supply chain is causing significant delays and, in many cases, an inability to meet demand. After more than a year and a half of COVID-19 stress and fatigue, finding a way to say thank you to your workers just got a lot harder.
According to a recent study, 58% of companies plan to increase their gifting compared to years past, meaning those elusive meaningful employee gifts will be even more scarce. Ordering gifts two months early isn’t just good planning; it might be necessary to ensure gifts arrive in time for the holidays this year.
“Corporate leaders should place their employee gift orders now if they want their staff to receive them by the end of this year,” says Dale Denham, MAS+, president, and CEO of Promotional Products Association International. “At this point, most businesses will not be able to get their first choice for an employee gift as inventory is already depleted and logistical issues are preventing inventory replenishment.”
Last year, promotional products companies delivered millions of gifts to employees directly to their homes. Inventory was an issue last year on standard items like blankets and also on hot items, such as popcorn makers, but this year brings forth far more challenges for corporate gift buyers.
Labor shortages to decorate and pack gifts are adding to inventory issues, creating delays in getting items to the intended recipients. Additionally, transit times from FedEx and UPS are increasing, further complicating the ability to deliver employee gifts. “We began seeing orders for holiday gifts in July,” says Denham. “Order now, because even if there is inventory available, the production times could be extremely long. In years past, you could order as late as Dec. 10 and likely still get a few items by Dec. 25. This year, the longer you wait, the less chance you have of receiving the items — especially if you need them shipped to multiple locations.”
Joe Fischer, founder of greetabl, a personalized gift box company, recommends the following guidelines to avoid shipping delay headaches for your corporate holiday gifts:
- Send your gifts for Thanksgiving delivery: Sending gifts earlier in the season will give you a better chance for on time arrival, as the carriers should be less constrained with Black Friday and Cyber Monday deliveries.
- Send your gifts late: Another option is to send New Year’s gifts to clients and employees in early January, after the major holiday rush. Just make sure you lock in your inventory early because if you wait to shop until after the holiday rush, inventory availability could be challenging.
- Plan for extended shipping windows: Want to get your gifts there as close to the holidays as possible? Aim to have your gifts out the door the first week in December. Some will arrive early, but gifts that do get delayed will need that extra cushion to make it to their destination on time.
Fischer acknowledges the power a well-timed gift can have for employee morale amid a staggering worker shortage. “Workers want higher wages and better working conditions, and our economy is struggling to keep up. What this means for many businesses in America is that retaining your employees is getting harder, as there is increased competition and many other companies are offering signing bonuses and unprecedented salaries.
“Even your most content employees could be a flight-risk if you don’t prioritize employee appreciation and engagement efforts this year,” Fischer adds.
Fischer offers the following advice so companies don’t screw up their employee gifts:
- Personalize your gifts: Whether you are sending to 20 employees or 2,000, it’s important to make sure each person feels like they received something personal. Companies that personalize the message to their gifts see higher returns and more social shares.
- Don’t send swag: There’s a time and a place for swag, but your holiday gifting program isn’t it. If you want to reward your employees and truly motivate them, you need to give them something that feels like it’s for them — not just for the company.
- Send a gift to their home: Your employees spend a lot of time at work. One way to increase the impact of your employee engagement campaign is to send a surprise to them at home. It helps the employee feel a sense of pride in their work in front of their family and it feels a little more personal than receiving something at their desk.
- Opt for gift cards: One way to get around product availability is to send gift cards. These won’t be limited by supply chain disruptions and, if you combine them with personalized messages and photos, can still have a big impact on your recipients.
One market segment that has not seen as significant of an impact from supply chain delays are local vendors. Buying local and supporting the local economy is always a good idea, but this year it could also be your quickest, most cost-effective shopping option.
Carol “Orange” Schroeder, chair of the Monroe Street Merchants Association and co-owner of Orange Tree Imports, notes that many Madison-area retailers are trying to use local vendors when possible and as such they aren’t seeing nearly the bottleneck on goods as the big box retailers that largely import products from overseas.
Schroeder says many Madison shops offer a variety of local corporate gifts, including chocolates from confectioners like Madison Chocolate Co. and Infusion Chocolates as well as gift boxes from Good Day Shop and Orange Tree Imports, among others listed on the Monroe Street Merchants Association website.
Downtown Madison also provides a directory of local retailers on its own site, many of which offer corporate gifts as well.
If all else fails, there’s always one option that employees will be happy to receive: cash.
“Money still talks, especially if employers haven’t been able to offer salary raises,” notes Paul McDonald, senior executive director of staffing firm Robert Half. “Giving cash rewards is one way that companies can recognize staff for their hard work over the past year and keep them motivated and loyal for months to come.”
McDonald adds, “Bonuses can be easy to implement and have universal appeal because employees appreciate the flexibility of being able to use them however they see fit.”
Year-end bonuses can also be powerful tools for reminding staff that their hard work and commitment and the company’s overall growth and success are closely intertwined. Not to mention, in a competitive hiring market, presenting employees with a financial reward — whether it’s to acknowledge individual, departmental, or companywide success — can help bolster retention and even recruitment.
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