8 reasons to start investing in employee birthday gifts.

A birthday is one of the few moments that truly revolves around the individual. That’s exactly why it offers employers a perfect oppor­tu­ni­ty to show genuine appre­ci­a­tion. Make sure your people feel special on their special day.

Not everyone gets married, celebrates tra­di­tion­al holidays, has children or has been with your organ­i­sa­tion for years. By cel­e­brat­ing birthdays, you ensure that no one is left out, every employee is recognised at least once a year. It’s a simple way to support a trans­par­ent and fair gifting policy.

Did you know that 90% of employees feel appre­ci­at­ed when they receive a birthday gift? Yet, according to our own research, only 1 in 10 actually receives one, even though 4 in 10 would like to. Among younger employees (up to age 34), that number even rises to 50%. So, you know what to do.

The numbers don’t lie. In 2025, the number of birthday gifts rose by no less than 17%. And that’s no coin­ci­dence. In an economic climate where salary increases are under pressure, HR pro­fes­sion­als are actively looking for alter­na­tive ways to show appre­ci­a­tion and retain top talent. Birthdays offer an accessible yet powerful solution.

Appre­ci­at­ing employees on their birthday isn’t just thoughtful, it’s also a finan­cial­ly smart move. Birthday gifts are tax-deductible, provided certain conditions are met. Our experts explain everything you need to know in this article on the Dutch work-related costs scheme and this blog post on the Belgian legal framework.

A birthday is a moment of reflection, and that includes reflecting on one’s job. Milestones like turning 30, 40 or 50 often spark a desire to re-evaluate one’s career path. Research shows that lack of appre­ci­a­tion is the number one reason employees leave. Those who do feel recognised are up to 45% more likely to stay. A small gesture on such a day? Big impact.

Showing appre­ci­a­tion on a personal moment like a birthday has an organ­i­sa­tion-wide effect. It leads to stronger engagement and loyalty, higher motivation, increased pro­duc­tiv­i­ty and greater job sat­is­fac­tion. Thoughtful, impactful appre­ci­a­tion helps build a stronger, warmer and more positive company culture. And that’s great news for your employer branding.

The positive effect of appre­ci­a­tion doesn’t stop internally, it sends a strong external signal too. A Gallup study found that companies actively investing in employee appre­ci­a­tion saw up to 23% higher customer retention. So appre­ci­a­tion isn’t just the human thing to do, it’s a smart business decision as well.

It’s not for lack of good reasons. And yet, the majority of organ­i­sa­tions still don’t offer birthday gifts to their employees. The most common concerns? The fear of forgetting someone and the admin­is­tra­tive burden that comes with it.

But showing appre­ci­a­tion on a birthday doesn’t have to be a headache. With our practical gifting platform, Kadonation Select, you can automate the entire process: from linking your employee list to auto­mat­i­cal­ly sending out a per­son­alised gift, fully tailored to your organ­i­sa­tion. No one gets forgotten, you save time, and you strengthen engagement within your team.

Try it now!