Corporate Gift Spending: 2023 Into 2024

Trends in Corporate Gift Spending 2024

In 2022, holiday spending was projected to reach an average of $1,802 per person and up to $2,616 per person for high earners. Apparel was expected to make up a good portion of that, with an increase of 4.6% in sales likely due to wardrobes being updated after athleisure and loungewear reigned supreme during the pandemic.

Despite 2022 spending, though, the economy is slowing down, and companies have to look ahead to changes in spending habits for 2024 to assess how their budgets will change, too.

It’s still possible to recognize clients and employees for their commitment to your company while remaining cost-conscious. By creatively selecting gifts based on affordability and the relationship to the recipient, you can stretch your budget further than in years past.

Your hardworking employees have gone above and beyond in unprecedented times. Show how much you value them and boost morale with thoughtful branded gifts that stay within your 2024 company gift budget.

 

How Will Corporate Gifting Be Affected in 2024?

Businesses don’t need to cut corporate gift spending entirely. Instead, they can be more careful and intentional when it comes to the gifts they buy. 

How much do businesses spend on employee gifts? That depends on how many employees there are and on the company’s budget. On average, though, gifts range from $15 to $75 per person per occasion.

Luckily, there are a lot of ways to stay budget-friendly in the corporate gifting market in 2024.

Invest in High-Quality, Meaningful Gifts Within Your Budget

You can keep the employee gift budget low without buying poor-quality gifts. By investing in affordable, high-quality gifts, they’ll last longer, remain useful and continue to showcase your branding for the long term.

Consider products from brands you’ve never used before to open yourself up to more choices and a broader range of prices. You can mix-and-match corporate gifts, too. For example, a top client may be gifted a luxury-priced item, while your employees receive less-expensive gifts.

Buy Corporate Gifts You Know They Want

It’s definitely acceptable to ask employees which gifts they really want! This ensures you don’t miss the mark and waste money on products that won’t be used. At Merchology, we created the Group Order Tool and the MerchStore so your employees can select their favorite gifts. 

• The Group Order Tool lets you create a merch website that’s customized for your company so that you don’t have to always search through a ton of product options or input your shipping information every time you order. 
• The MerchStore is a custom website that you create for your customers, employees and fans where they can shop for branded gear that you’ve pre-selected.

Also consider how much you spend for specific events. Most employees feel that business milestone gifts should have a higher value than annual holiday gifts.

Invest in Customers Instead of Trying to Win New Ones

A majority of companies (93%) are planning for a recession and restructuring their budgets to be more efficient. That means sticking to what works, which is why 67% of businesses are putting their current connections first, striving to keep them happy instead of acquiring new ones. 

When you’re keeping an eye on corporate gift spending, it’s a great time to nurture existing business partnerships and customers. Showing your appreciation for and retaining existing connections is much less expensive than trying to get new leads.

 

Show Your Deep Appreciation

Part of making customers happy is keeping employees happy. Receiving corporate gifts gives employees a higher opinion of their employer while making them feel more connected and loyal to their position (which can drive up profitability for the company). 

How memorable and personal the gift is matters, though — only the gifts that make employees feel appreciated will result in those favorable outcomes.

When reducing your spending budget, consider how useful the item is. For example, a custom wine set is a lovely top-tier gift, but when you can’t spend that much, make up the difference with functionality. Custom gloves, desk organizers and charging stations can cost quite a bit less but be more useful to your employees, especially if you select gifts based on what you know each person needs.

 

Invest in Holiday Gifts That Support Good Causes

Even if it’s limited, use your 2024 company gift budget to support businesses with altruistic or responsible values. This communicates that your company cares about social consciousness and that you want your employees and partners to share your principles.

Shop with purpose with our 2024 guide to Socially Conscious Corporate Gifts. You can learn about all of our sustainable apparel and gifts, as well as the eco-conscious brands we work with, like Patagonia, S’well and Zusa.

 

Contact Us

Contact us today for help making the most of your employee gift budget!