Why should a Company Need an Employee Gift Policy

By hrlineup | 25.11.2020

Top managers hold incredible power within organisations. For this reason, both employees and clients alike may strive to engage with them, and gain favour. In most companies, there are clear rules in place against bribery, especially in the form of cash. To go around these rules, giving gifts may seem to be a viable option.

Gifts are available in various forms including physical items, club memberships, expensive meals or other rewards that are outside of the day to day work. They can also be something as simple as fruits or cookies given as a reward. For the most part, the intention behind giving a gift is positive, however, a gift-giving policy is necessary to ensure there is no abuse of the privilege. The key reasons for a company gift policy include: –

  1. Controlling spend – With a corporate gift policy, it is possible to limit the dollar value of a gift that can be expected. This ensures that clients, vendors, and co-workers are aware of the gifts that will be acceptable.
  2. Reporting gifts – Where gifts of large value are given, it may be necessary for these gifts to be reported to the top management. The management can then decide whether they approve of the gift, or if it is not acceptable.
  3. Restricting gifts – There are gift policies that limit who within the organisation can accept gifts. In these policies, lower-level employees are typically able to accept a gift, while those in management are prohibited from receiving them.
  4. Collective gifts – With vendor gifts to employees, a policy can be set to ensure that these types of gifts are kept within the office and distributed amongst staff during the holidays.

Special Circumstances

At the end of each year, a company may choose to have an end of year get together with all the staff. One common feature is a Secret Santa so that employees can offer each other gifts. This is unique, as the gifting is between colleagues using a simple raffle ticket process rather than a one to one exchange. In these circumstances, the policy should include setting limits such as the total value of the gift an employee can give, and criteria such as no gift cards or cash can be exchanged help manage internal gift giving.

The company gift policy for employees is found within the code of conduct. It should offer clear definitions of what constitutes a gift from suppliers, vendors, customers, as well as others from outside the organisation. Another clarity within the policy should be the accepting gifts from client’s ethics, both within and outside the work premises. The circumstances within which a gift can be given are to be stated as well, including what happens if any of the provided rules are contravened.

Corporate gift policy ethics help control liability issues and ensure that employees maintain credibility. The policy offers protection from potential bribes and sends a message that all employee interactions both within and outside the company need to be above board.

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