Small business: Holiday gifts on a budget

The holidays are fast approaching, and you may be wrangling with the question of whether to give gifts to your employees.

The good news for employers on a budget is that with the economic downturn, employee expectations for gift giving are low. A recent survey from Parago, a consumer and corporate incentives provider, found that 69 percent of employee respondents didn't even expect their employer to give end-of-year rewards or holiday gifts this year.

That means that even a little recognition this holiday season would go a long way in boosting employee morale, say experts.

"I think people's expectations are a lot different than three or four years ago," says Timothy Andrews, president of the Advertising Specialty Institute, a Trevose, Pa.-based media and marketing organization serving the promotional products industry.

Employees themselves have cut back on spending in this economy, says Andrews, noting, "They're expecting their employers are more careful on how they're spending as well."

ASI's Advantages Magazine just released its annual 2011 gift guide, and there's a "tremendous" focus this year on gifts under $25 or $50, says Andrews. Some popular items under $25 include a blooming flower hub with USB ports that connect up to four devices, and personalized skins for cellphones, laptops and iPods.

Budgeting: To get started on assessing employee gifts, make a list of employees and a budget for how much you can spend. Some employers tier gifts based on employee length of service or other criteria.

"If you have someone who is with the company for 20 years, it's not inappropriate that they get a slightly better gift than someone who just joined the company," says Ron Orleans, chief executive of GiftsOn Time.com, a gift management platform that allows users to upload contacts and order, schedule and manage the delivery of gifts throughout the year.

Don't create too many tier delineations, he notes -- two or three at the most, based more on length of service than position.

And if you're differentiating gifts, it's wise to deliver them to employees discreetly to avoid a rivalry situation, notes Andrews.

Food items are always well received, adds Orleans, noting their Godiva collection is very popular.

A logoed desk item that incorporates food can also be a good low-cost idea, says Lisa Chalker of Family Affair Distributing Inc. in Massapequa, which specializes in gourmet gift baskets and imprinted promotional products.

A popular item is a candy dispenser that has a wooden bottom with the company name fire-branded on it and an attached acrylic dispenser on top filled with jelly beans, she says.

As an added bonus, during the year the company can hand out refill candies as an inexpensive way of staying in touch and saying "thank you," she notes. You can get the dispensers for around $50 each for a minimum of 12, says Chalker.

If you're on a budget, consider filling gift baskets yourself with items you purchase in bulk, suggest experts.

Giving back: Beyond food, charitable gifts are also always welcome.

For the past decade Edge Electronics in Bohemia has purchased through Things Remembered a Make-A-Wish crystal ornament for its 35 employees. Part of the proceeds go to the Make-A-Wish Foundation, says Edge president Adrienne Giannone, who spends about $25 to $30 on each ornament.

"The employees look forward every year to receiving their ornament," she says, noting she also gives employees a holiday bonus.

Michael Pollina, Edge's director of procurement and product marketing, says the gift and bonus are much appreciated and go beyond his expectations.

"Just having a job in these tough economic times is what's most important," he says. "I'm grateful every year."

Can't give gifts? Here are other ways to recognize your employees this holiday season:

1. Throw a party

2. Treat them to lunch

3. Give time off

4. Hold a potluck luncheon

5. Organize an employee secret Santa gift exchange