It’s Time to Rethink Office Gift-Giving: Mary T. O’Sullivan

Mary T. O’Sullivan, contributing writer, business and leadership

“While offering gifts to people at work may seem like a simple and kind gesture, it has the potential to raise issues of favoritism, conflicts of interest, and even harassment or violations of employment, tax, or ethics laws.” – The Prinz Law Firm

Every December, as workplaces across the country wind down for the holidays, a familiar dilemma surfaces: what, if anything, should we give the people we work with? For employees, the question is often laced with anxiety. For managers, it can feel like a small but meaningful way to express gratitude. And for organizations, it is a surprisingly sensitive test of culture.

On its surface, gift-giving seems simple. But in practice, it reveals more about workplace power, expectations and inequality than most executives would like to admit.

There is no doubt that many employees appreciate holiday gifts from their employers. In a 2025 VistaPrint survey, more than 85 percent of workers said they felt more appreciated when they received even a modest gift. Small gestures can matter deeply at the end of a long year. Once, three different departments at my company each made sure I got the branded stadium blanket they believed was being distributed across the organization. I ended the season with three blankets — and a reminder that good intentions, and caring, multiply fast.

Researchers have found that the power of these gifts is not material – but psychological. A field experiment described in The American Economic Review, “The Currency of Reciprocity,” found that nonmonetary gifts — like classy, branded apparel — generated stronger goodwill among employees than cash of equal value. What employees respond to is the message behind the gesture: recognition, belonging, and a sense that their contributions are noticed.

But the other side of the story is harder to talk about.

Many workplace gifts fall flat, or worse, make employees feel invisible. One study found that more than eight in ten workers had received a workplace gift they didn’t want, usually from a supervisor. Another reported that 42 percent saw their gifts as impersonal or generic. The examples are telling: fruit baskets filled mostly with packing material, gift cards so small they felt perfunctory, or gag gifts — from fake vomit to novelty toys — that left employees wondering why their time and dignity weren’t worth more care.

These aren’t trivial complaints. Bad gifts can signal disconnection between leaders and the people they manage. And they expose how easily goodwill can be destroyed when a gesture is poorly considered.

The most fraught dynamic, however, arises not from employer-to-employee gifts but from the informal spending on coworker exchanges and collections for group gifts for managers. Collections for supervisors, in particular, create an uncomfortable mixture of social obligation and professional hierarchy. Younger employees or those with limited means may feel pressured to contribute, even when they cannot afford to. And coworkers who opt out often worry about appearing uncooperative.

These are organizational problems, not individual ones, and they merit the attention of leadership.

There are ways to do better.

Organizations should start by establishing clear, simple guidelines before the holiday season begins. Spending caps, transparent communication and truly voluntary participation can reduce anxiety for everyone involved. Allowing people to opt out quietly — without explanation — preserves dignity. Choosing practical gifts rather than humorous or personal ones avoids misunderstandings. And alcohol and religious items, regardless of the intent, are best avoided in a diverse workplace.

For employees who genuinely want to give something to a manager, the most appropriate gestures are often the simplest. A homemade treat, wrapped neatly, acknowledges the relationship without raising questions about favoritism or expectations.

Leaders also need to recognize that holiday gifting is more than a seasonal tradition. It is a microcosm of the organization’s culture. When handled well, it reinforces values like inclusion, transparency and respect. When handled poorly, it exposes inequities and unspoken pressures that employees feel all year long.

The holiday season can bring warmth to a workplace — a rare pause in the calendar when colleagues can acknowledge one another beyond deadlines and performance metrics. But this can happen only if the actions are genuine and the expectations are clear.

For companies, the challenge is not just to give a gift but to understand what the act of giving represents. A thoughtful gesture can build trust. A careless one can erode it.

As organizations prepare for another round of holiday cheer, it’s worth asking not what we should give, but what message our gift choices will send. Gift-giving isn’t about the object at all. It’s about whether people feel valued. And that, more than anything wrapped in festive paper, is what employees remember. As May Angelou famously said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel”.

Gift-giving at work can strengthen relationships, boost morale, and show appreciation – but it requires careful thought. – GiftList

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Connect with Mary:

Mary T. O’Sullivan, Master of Science, Organizational Leadership, International Coaching Federation Professional Certified Coach, Society of Human Resource Management, “Senior Certified Professional. Graduate Certificate in Executive and Professional Career Coaching, University of Texas at Dallas.

Member, Beta Gamma Sigma, the International Honor Society. Advanced Studies in Education from Montclair University, SUNY Oswego and Syracuse University. Mary is also a certified Six Sigma Specialist, Contract Specialist, IPT Leader and holds a Certificate in Essentials of Human Resource Management from SHRM.contributing writer, business leadership.