By Liese Hutchison
In the “no budget is too large” days of the 1980s, vendors lavished
gifts on clients with extravagances such as a set of golf clubs,
crystal bowls and leather briefcases. Employers would hold black-tie
parties for employees, bringing in national entertainers and
serving five-star meals. Those day of holiday extravagance have
been replaced by the $25 rule. No one is certain when this “rule”
came into being, but today, exchanging gifts that value more
than $25 is verboten in numerous companies and can trigger a
tax penalty for employees.
So with
the prevailing sentiment that extravagance is out, what are
companies giving and why? A simple thank you is the number one
reason why vendors offer gifts to clients and employers to employees
during the holiday season, says Wendy Franklin, president of
Franklin Promotional Group. Other reasons include keeping a
client or employee happy for retention purposes and, of course,
recruiting potential clients or employees. Franklin founded
her company in 1995 as a full-service provider of quality promotional
products, executive items and vendor gifts. Her staff of three
full-time employees work with dozens of area companies in search
of the perfect gift.
Gift choices have become more personal and less grandiose, Franklin
notes. “People are putting more thought into gift giving; gifts
are more tasteful,” she says. Even items for less than $25 with
company logos can still offer a personal touch—leather portfolios,
coffee cups, attaches, desk accessories, picnic sets and even
blankets. Franklin urges companies to think of logo gift giving
as an extension of the advertising budget.
Of course, now is the time to purchase gifts with company logos,
she states. “Factories become inundated starting October 1.
In addition, you have to think about how the gift is being delivered
and how long that will take,” she notes.
Traditional gifts of alcohol, chocolates, fruit baskets and
flowers are still offered as holiday choices, but disappear
quickly. “Giving perishable items works if you’re thanking a
large group of people such as a clerical staff or a department
that works in shifts,” she states. Dierbergs, Schnucks and various
florists offer holiday gift baskets and packages, including
gift certificates.
Some companies refuse gifts all together. A typical solution
is to give money to a favorite charity in that company’s name.
“A popular idea is giving to charities versus giving gifts.
The receiving charity typically sends a card to the client or
the employee saying a certain amount of money was donated in
their name,” Franklin says. And instead of the large company
party, departments are holding more intimate affairs over lunch
and may exchange gifts within the department.
Even though companies have been following the $25 rule for about
a decade, the holidays don’t have to be a bah humbug affair.
Simple messages, gifts with a personal touch and intimate gatherings
are less expensive ways to say thank you with class.
Liese L. Hutchison is an assistant professor in the department
of communication at Saint Louis University and a free-lance
writer.
