Centralised versus decentralised gifting policy: which is best for your organisation?

A cen­tralised gifting policy means that all decisions around employee recog­ni­tion and gifts are made from one central point – usually HR or senior management. This ensures a stream­lined and uniform approach.

This system works well for organ­i­sa­tions that place a lot of importance on con­sis­ten­cy and control, and where recog­ni­tion often focuses on tra­di­tion­al gift occasions, such as end of year or work anniver­saries.

Advantages of a centralised gifting policy:

• Uniformity: No more ​‘Oh, you got a 50 euro gift and I got 20 euros?’ situations. In other words, no more ad hoc gift giving or personal influence.
• Efficiency: Everything is managed from one central point, ensuring a stream­lined, clear and trans­par­ent approach.
• Control: You’re able to keep track of everything: who gets what, when and why? This prevents chaos and unforeseen situations.

But… there can also be a downside to this system. There is a danger that it can feel impersonal – especially in large organ­i­sa­tions – because managers have less flex­i­bil­i­ty to respond to specific events and pref­er­ences. Employees often appreciate that personal touch their direct manager adds.

With a decen­tralised gifting policy, the imple­men­ta­tion and respon­si­bil­i­ty for employee recog­ni­tion are embedded deeper in the organ­i­sa­tion. This gives managers the oppor­tu­ni­ty to be more closely involved in gift giving. Given that they’re in the best position to know what’s going on in both the private and pro­fes­sion­al lives of their team members, they can respond to unique occasions quickly and personally. This makes gifts not only more valuable, but also more meaningful.

Advantages of a decentralised gifting policy:

• Responding to unique occasions: For example, a team member who has just lost a loved one, is caring for a sick parent, or has shown excep­tion­al dedication to an important project. HR is often unaware of these situations and could inad­ver­tent­ly miss these valuable moments that matter, while these are in fact the occasions when a gift can be the most meaningful.
• Respecting personal pref­er­ences: Managers are better at under­stand­ing the personal pref­er­ences, styles and tastes of their team members. For example, you want to avoid giving a box of biscuits to a colleague who’s on a diet, and opt for an alcohol-free alter­na­tive for someone who doesn’t drink. It’s also a better way to respect cultural pref­er­ences, such as a gift during Eid al-Fitr instead of Easter.
• Increased engagement: Managers feel more personally involved in showing their appre­ci­a­tion for their team members, which strength­ens the bond between them. This makes the employee recog­ni­tion process not only more efficient, but also more meaningful for both the giver and the receiver.

However, decen­tral­i­sa­tion also comes with a risk: incon­sis­tent gifts and less control. For example, one manager may be very generous, while another is more reserved. This can lead to unequal appre­ci­a­tion between employees and depart­ments, which can cause inequality and potential frus­tra­tions.

As an organ­i­sa­tion, you sometimes don’t want to choose between a cen­tralised or decen­tralised gifting policy, and you don’t have to! In fact, the ideal gifting policy combines the best of both worlds. We call this the ​‘hybrid model’ and it brings together the strengths of both.

HR can be respon­si­ble for the company occasions – like end of year or onboarding – where uniformity and efficiency are essential. Team leaders can in turn be respon­si­ble for the more personal or ad hoc moments, such as a birthday, get well soon or the successful completion of an important project. This is how you ensure a nice balance between uniformity and per­son­al­i­sa­tion.

There is no right or wrong answer to which gifting policy is the best. Both cen­tralised and decen­tralised – or a com­bi­na­tion of both – can contribute sig­nif­i­cant­ly to employee engagement and a positive working atmosphere, if applied correctly. The choice mainly depends on your organ­i­sa­tion­al culture and structure.

Is your organ­i­sa­tion large and spread across multiple locations? Then a decen­tralised approach can help keep appre­ci­a­tion personal. Do you work with a smaller, close-knit team that places a lot of importance on con­sis­ten­cy? Then a cen­tralised policy with room for personal gifts may work better.

A gifting policy must be dynamic and grow with the organ­i­sa­tion to be successful in a sus­tain­able way. Clear guidelines and training for those respon­si­ble are essential for consistent imple­men­ta­tion. An online gift platform can play an important role here. This allows you to keep track and control of everything, even within a decen­tralised approach.

Kadonation Select offers the tools to effi­cient­ly implement your (de)centralised or hybrid gifting policy. Discover the pos­si­bil­i­ties and make appre­ci­a­tion easier and clearer.