Why have a gifting policy?
What is a gifting policy?
A gifting policy (or appreciation policy) is a clear framework for how you recognise your employees. It brings together agreements on occasions, budgets and types of gifts. This ensures every form of appreciation is delivered in the same warm, fair and transparent way, across teams and locations.
Why do you need a policy?
Without clear agreements, differences quickly arise: managers make different choices, budgets become unclear and teams end up with uneven practices. This can sometimes feel unfair and may not convey the message you intend. A gifting policy brings consistency, clarity and trust.
What impact does it have on your organisation?
When people feel seen, their motivation and engagement increase. A gifting policy strengthens that effect: not by giving more, but by ensuring that appreciation is delivered consistently, recognisably and at the right moment for everyone.
From one-off gestures to
a thoughtful approach.
A gift given at the right moment will always be meaningful. But a policy that reaches every employee at the right time takes appreciation to a higher level. No longer dependent on chance, but woven into your culture.
Discover how we do it at Kadonation
The building blocks of a strong gifting policy:
- Governance and agreements: Decide which occasions you include, who is responsible and how decisions are made. This way, everyone knows what they can rely on.
- Budget and financial guidelines: Budgets and tax rules define your room to manœuvre. Clear guidelines prevent discussions and unwanted surprises.
- Processes and workflows: From request to approval: a simple workflow makes appreciation easier and prevents mistakes.
- Inclusivity and culture: Ensure that appreciation fits your organisation and reaches everyone. Fair, warm and recognisable.
- Tools, administration and reporting: The right support keeps appreciation both personal and efficient. You maintain oversight without adding extra work.
How do you get started?
- Map out your current situation: What is already going well? Where is structure missing? The employee journey helps you identify the moments that truly matter. Ask your employees for input too, and pay attention to reflection moments throughout the year (e.g. returning from holiday).
- Define clear objectives: Are you aiming for greater equality? Less ad-hoc decision-making? A stronger culture? Clear goals give direction.
- Decide who to involve: Choose between a central, decentralised or hybrid model. This determines who makes decisions, who executes them and where automation can make a real difference.
- Set guidelines and budgets: Keep things simple, clear and recognisable. Select the right moments and appropriate amounts.
- Communicate internally and create buy-in: Explain why this gifting policy exists, how it works and what employees can expect. Clear and human communication leads to understanding and support.
- Start small and grow with confidence: Perfection isn’t necessary. A simple, warm start works far better than an elaborate plan that never gets launched.
What is a realistic budget?
An appreciation budget depends on your culture, your team and the fiscal framework. There are clear guidelines that provide a solid reference point.
Fiscal
context
The tax rules around employee gifts are clear and provide guidance, although they differ from country to country.
However, they don’t have to dictate which moments you consider meaningful, nor should they take away the spontaneity of showing appreciation.
However, they don’t have to dictate which moments you consider meaningful, nor should they take away the spontaneity of showing appreciation.
Benchmarks and ranges
Reference values vary widely: from a few dozen to several hundred euros per employee per year, depending on the occasion, the culture, the sector and your objectives.
Benchmarks give you a starting point, but ultimately it’s about what fits your own way of showing appreciation.
Benchmarks give you a starting point, but ultimately it’s about what fits your own way of showing appreciation.
Optimise your policy.
A gifting policy is a living system. By measuring, evaluating and adjusting regularly, you maximise its impact for both your employees and your organisation.
- Insights and reporting: Clear reports show where appreciation is working, where it’s missing and which teams may need extra attention. Data-driven insights make conversations with management easier and support conscious decision-making.
- Automation and efficiency: Many appreciation moments are predictable (e.g. birthdays). By automating them, appreciation remains warm, personal and error-free, without requiring weekly follow-up. You save time and avoid accidentally overlooking colleagues.
- Appreciation ROI: Appreciation strengthens retention, engagement and wellbeing. By measuring its effects — such as turnover trends, eNPS or internal surveys — you invest deliberately where it brings the greatest return.
- Continuous improvement: Organisations change, teams grow and expectations evolve. By reviewing your gifting policy regularly, appreciation remains a powerful part of your culture.
From policy to practice.
A gifting policy only works when its execution remains simple, consistent and human. That’s exactly where Kadonation Select, our gifting platform, makes the difference.
Select as the blueprint for your policy:
- You define the key moments you want to focus on and set them up in the platform.
- You choose gifts that fit each moment and align with your policy.
- You configure approval flows or budget thresholds.
- You automate wherever possible, without losing the personal touch.
- You centralise invoicing so everything stays clear and manageable.
Frequently asked questions about gifting policies:
-
How long does it take to set up a gifting policy?
That depends on your starting point. Most organisations create a basic policy within 2–6 weeks: mapping the current situation, defining agreements, setting budgets, aligning with stakeholders and communicating internally. With a platform like Kadonation Select, the operational implementation of your gifting policy is often much faster. -
How do I decide which moments to include in our gifting policy?
Start from both your culture and the employee journey. Make a distinction between classic gifting moments (e.g. year-end), essential gifting moments (e.g. birthdays) and delight moments (e.g. offboarding). Ask employees for input to uncover blind spots, this often reveals surprising and meaningful moments. And make sure your approach is inclusive. -
Do I need to review the gifting policy every year?
A light review at least once a year is ideal. Culture evolves, teams change and tax regulations may shift. An annual check keeps your policy fresh, relevant and compliant. -
How do I convince leadership or finance to invest in a gifting policy?
Focus on transparency, fairness, compliance and time savings. There are also clear links to retention, employer branding and wellbeing. A structured policy prevents unexpected costs and scattered purchases, something finance teams are usually very positive about. -
What if our budget is limited?
A strong gifting policy doesn’t have to be expensive. It’s more about consistency and meaning than about large amounts. Small, timely gestures (birthdays, first working day, milestones) often have more impact than one big, generic expense. -
How do I avoid administrative chaos?
With fixed workflows, approvals and centralised invoicing. A gifting platform removes 80–90% of the operational workload and automates reporting. This makes errors and duplicate purchases almost impossible. -
How do I ensure appreciation remains fair across different teams and locations?
By setting clear and simple guidelines around amounts, moments, responsibilities and gifts. A tool like Kadonation Select helps you roll out a central gifting policy in a decentralised way, thanks to smart budget controls, approval flows, automation and HR synchronisation.