The legendary writer Maya Angelou once said, "I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel."
This is the bedrock of what we believe the real ROI of thoughtful gifting to be - it’s about creating moments, forging genuine emotional connections, and nurturing a company culture where appreciation is not just a policy, but a deeply felt, consistent, and palpable experience.
In the strategic landscape of modern business, every investment is scrutinised for quantifiable return. From technology upgrades to marketing campaigns, we meticulously track metrics to justify expenditure. Yet, when it comes to the human element - specifically, employee appreciation and engagement – the conversation often remains tethered to surface-level indicators: improved retention, slight upticks in productivity, or a general sense of happier employees. While these are undeniably positive outcomes, we contend that the true return on investment (ROI) of thoughtful corporate gifting runs far deeper than conventional wisdom (and KPIs on a spreadsheet) suggest. The real ROI delves into the core of human psychology and emotional wellbeing, cultivating something profoundly valuable that cannot be easily captured in your spreadsheet: how you make people feel.
In this article, we'll explore the science behind why gifting - and specifically thoughtful gifting - goes beyond an expense on your income statement.
The science of feeling valued
The power of thoughtful gifting is rooted in fundamental human psychology and neurobiology. When an employee receives a genuinely personal and well-timed gift (one that feels truly earned, deserved, or simply reflective of sincere gratitude) a chain reaction - backed by science - is kickstarted:
- Neuroscience! Bear with us here, we're getting a bit nerdy and scientific. Research shows the brain's response to both giving and receiving. Studies, such as one from the University of British Columbia, consistently show that acts of generosity (like thoughtful gifting) activate the brain's mesolimbic reward system – the same circuits associated with pleasure and addiction (in a good way). For the recipient, this translates to a release of dopamine, the feel-good neurotransmitter. Crucially, it also stimulates the release of oxytocin, often dubbed the bonding hormone. Oxytocin leads to trust, empathy, and strengthens social connections. These neurochemical responses are far from short-lived; they lay down pathways that deepen emotional bonds, cultivate a profound sense of belonging, and solidify trust within the workplace ecosystem. This isn't just about a momentary smile; it builds a physiological foundation for loyalty and engagement.
- Psychology of reciprocity! When employers extend themselves through genuinely meaningful gifts, employees are naturally inclined to reciprocate. This isn't a transactional 'quid pro quo', but a deeper human impulse to return kindness and generosity. This reciprocation manifests not as obligation, but as increased intrinsic motivation, heightened engagement, greater discretionary effort, and ultimately, stronger loyalty. It transforms the dynamic from an employer-employee relationship to a more human-to-human connection. Note, though: the sentiment behind the gifts must be believed. A box-tick exercise won't have the same impact.
- The Endowment Effect! A generic corporate pen, however functional, rarely evokes strong feelings. But a gift that is personalised, tailored to an individual's known interests, or clearly chosen with their unique identity in mind, is perceived as significantly more valuable. The Endowment Effect suggests that people place a higher value on things they own or feel connected to. When a gift feels specifically chosen for them, this effect is amplified. Data from the Incentive Research Foundation (IRF) consistently highlights that personalised recognition and tailored gifts can increase their perceived value by up to 40%. This transformation makes employees feel profoundly seen, understood, and uniquely valued – a powerful differentiator in today's competitive working landscape.
The emotions from feeling valued
While traditional metrics on retention, productivity, and absenteeism provide a foundational understanding, the true power of thoughtful gifting lies in its ability to cultivate something far more profound and enduring:
- 'Warm All Over'. Ok, there isn't really a fancy term for this one. It's an intangible, hard to describe feeling, but is perhaps the most powerful. It’s that moment an employee receives a gift that genuinely surprises and delights them – perhaps a bespoke sports hamper reflecting their passion for wild swimming, or a carefully curated pamper box after a period of intense pressure. In that moment, they don't just see a product; they feel the warmth of genuine appreciation. Years later, they might not recall the exact item or even the specific occasion, but they will remember that feeling of being seen, understood, appreciated, and truly valued. This deep emotional resonance can elevate their mood for a day, a week, or even a month, fostering a profound sense of well-being that no purely monetary bonus or standard corporate perk can replicate. This is where the Angelou quote comes to life.
- 'Bridges In A Remote World'. We're not psychologists, so we don't know the technical term for this one either. But we do know that in an increasingly digitised and often geographically dispersed work environment, genuine human connection is a precious commodity. Thoughtful gifts act as powerful bridges, reinforcing that behind every email, every video conference, and every Slack message, there is a person whose contributions are recognised, celebrated, and appreciated. This consistent reinforcement cultivates psychological safety, a critical factor for high-performing teams, where individuals feel secure enough to take risks, express ideas, and be vulnerable without fear of negative consequences. It fosters a more empathetic, supportive, and collaborative work environment. Research from Crestcom demonstrates that strong human connections in the workplace are directly correlated with improved communication, higher engagement, and stronger team cohesion, and there are plenty more studies showing similar.
- 'The feeling of belonging'. When thoughtful gifting is not a tick-box exercise, it fundamentally transforms company culture from a transactional relationship to one built on genuine appreciation and mutual respect. Employees feel not just prat of the compan, but part of a supportive, grateful and appreciative community. This sense of belonging is an antidote to the isolation and loneliness that many remote and hybrid workers experience. Studies consistently show that feeling connected to colleagues and the organisation is a powerful predictor of employee engagement, job satisfaction, and overall team performance.
- 'Resilience and morale boosting'. Feeling genuinely valued and appreciated results in employees who are inherently more resilient in the face of challenges. This deep-seated feeling of value contributes to consistently higher morale, which in turn fuels greater productivity and significantly reduces voluntary turnover. The Society for Human Resource Management (SHRM) offers staggering statistics, estimating that the cost of replacing an employee can range from 16% of an entry-level employee's annual salary to as much as 213% for highly specialized positions. It doesn't take a mathematical genius to work out the substantial economic benefit of retaining happy, loyal staff through meaningful appreciation (especially when it's relatively inexpensive to do so). Moreover, a positive emotional state, often sparked by genuine recognition, correlates with increased creativity, better problem-solving abilities, and a reduced likelihood of burnout.
Conclusion
Consider the cascading costs of high employee turnover, the tangible (and intangible) impact of low morale on team dynamics, or the lost innovation from a disengaged workforce. Against this comprehensive backdrop, the relatively modest investment in thoughtful, personalised gifting reveals its profound economic power - a gift costs less than a day's salary, but replacing a colleague costs thousands, and lost revenue from disenchanted colleagues can run into millions. It's not just about spending money; it's about making a strategic and sensible investment in the emotional capital, mental wellbeing, and sustained loyalty of your most valuable asset: your people.
At Monty&Ridge, we believe in crafting gifts that do more than just sit on a shelf. We craft experiences that bring joy, inspire genuine connection, and ultimately deliver the authentic, profound ROI of thoughtful appreciation. The warmth that gifting creates, the memories it sparks, and the deep sense of gratitude it inspires are the real, often immeasurable, returns that will continue to pay compound dividends across your organisation for years to come.
