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In a study by the Society for Human Resource Management of 738 human resources professionals working for companies with 500 or more employees, eight out of 10 (80 percent) said their company has an employee recognition program in place. When it comes to employee gifting alone, U.S. companies spend $40 billion every year, according to the Business Gift Satisfaction Report: Employee Gifting Supplement , a 2017 report by data management company Knack. The supplement, which includes the results of a survey of 500 full-time U.S. workers on employee gifting, also found that employees expect companies to spend the most on gifts that recognize employee milestones ($150 average) and the least on gifts for birthdays ($50 or less), but an average of $75 on gifts to recognize promotions, work anniversaries and holidays; a number that remains consistent by region. Their favorite gifts to receive? According to Knack, 76 percent of employees said unique or useful items, followed by food (50 percent), wine (43 percent), gifts personalized with their initials or name (40 percent), gifts with a giveback component (40 percent), spa products (36 percent), gifts with company branding (26 percent) and flowers (18 percent). Nearly nine out of 10 people (88 percent) who participated in the Knack survey, however, said they’d rather receive gift cards. The shortcoming of gift cards, in comparison to the appeal of tangible products, is that they’re fleeting, and after the gift is given, it will leave little impact on the recipient, especially today when most people want instant gratification. After employees open their gift card, the report found that only 23 percent of C-level employees and 37 percent of junior-level staff will remember it; a sentiment shared by a large portion of the nation, as $3 billion in gift cards goes unredeemed every year, according to CBS News . Instead, companies can show their appreciation for employees, or motivate them to change current behaviors, with tangible merchandise. A case study from Massey Energy in Chapmanville, West Virginia, a coal producer, shows how. The company wanted to improve employees’ safety and reduce absenteeism and time lost from accidents. Massey Energy worked with distributor Artistic Promotions, LLC to develop a concept relating to football—something that appealed to many of its workers—and named it “Raymond Safety Bowl” after a former employee who was known for his safe work practices. A three-tiered point systemwas created and the points could be redeemed to purchase high- end merchandise in the Raymond Safety Bowl Catalog or online, which included a selection of premium products, such as fishing, hunting and camping gear, electronics, luggage and home accessories, like appliances and lawn equipment. As a result of the program, Massey Energy saw a reduction in absenteeism, a 47-percent reduction in time lost from accidents over the prior year and a savings of $5 million from accident reduction. The company was also recognized with Incentive Marketing Association’s Circle of Excellence Award in 2005 for its Raymond Safety Bowl campaign. Most Popular Gifts Given According to the results of Incentive magazine’s Merchandise IQ 2019, a study of 141 professionals working in incentives, the following are the top 10 gifts that companies give their employees: 57 % Food and beverages 55 % Apparel 40 % Electronics (less than $100 value) 34 % Desktop and office accessories 31 % Electronics ($100- $999 value) 30 % Plaques/ trophies 24 % Watches and clocks 22 % Books, music and movies 21 % Luggage and leather goods 19 % Outdoor and leisure equipment Roupplar / The_Molostock / Shutterstock.com. . | SEPTEMBER 2020 | 15 INNOVATE