Newswise — Whether it’s a festive holiday party, an end-of-the-year bonus or a thoughtful gift, many employees can expect something from their employers during this holiday season.
Although giving gifts and parties can certainly be appreciated by employees, do they offer employers any long-term benefits?
It seems many organizations think they do.
A recent CareerBuilder survey of more than 4,000 workers and more than 2,600 employers shows organizations are more likely to provide holiday parties and perks this year. According to the survey, 40 percent of employers plan to give their employees holiday bonuses, up from 33 percent in 2010. Fifty-eight percent of employers are planning a holiday party for their employees, up from 52 percent, and 30 percent of employers plan to give holiday gifts to employees, up from 29 percent.
Research on employee recognition demonstrates that sincere, credible recognition is appreciated by employees and can enhance their motivation and performance, said Tom Becker, chair and professor in the Department of Business Administration at the University of Delaware.
“This is likely to be true whether the recognition is provided during the holidays or at other times,” Becker said.
Providing parties, bonuses and other forms of acknowledgement, including gifts, for employees’ work has symbolic value beyond the objective value that may be attached. “They send a message that the employment relationship is more than simply a transactional one. That message is especially important to convey if employees have endured a year of no raises, extra workloads, threats of layoff or many of the other conditions common in workplaces right now,” said Kimberly Merriman, an assistant professor of management and organization at Pennsylvania State University.
The key to gift giving and other forms of recognition around the holidays is being sincere, explained Robert Eisenberger, a professor in the psychology department at the University of Houston. He studies perceived organizational support—what makes employees feel supported and cared about—and has recently published a book titled “Perceived Organizational Support: Fostering Enthusiastic and Productive Employees.”
“What’s important is the genuineness of what you do,” he explained. “If the employer just goes through the motions of giving a gift that doesn’t really indicate they value employees, then it doesn’t count for much. What, really is important is a genuine indication of valuation and caring.”What type of a gift or recognition will seem genuine to employees?
“One is the amount of time you are willing to spend on indicating you care about employees. For example, taking employees or subordinates out for a meal shows you really care about them, because it’s easy to give them a few dollars, but taking the time to treat employees to a meal involves effort and planning,” Eisenberger said,It’s important to know employees’ needs and values, said Becker. “That’s a key principle of management. This allows managers and others to select a form of recognition or reward that employees will welcome. For some it might be money and for others a simple and sincere verbal acknowledgement of a job well done.”
Becker said non-monetary recognition can be just as effective as a bonus. “Forms of recognition besides money include written or verbal praise; symbolic rewards, such as plaques and certificates; small, meaningful gifts; or anything else that employees perceive as sincere recognition of their contributions and accomplishments,” he explained.
It’s important to be consistent, according to Merriman. If gift giving is eliminated after years of doing it without a credible explanation, employees are likely to be upset. “The motivational effects may be most obvious in the absence rather than presence of such recognition, since employees anticipate receiving something,” she explained. “For instance, one organization I know of experienced employee backlash when it stopped giving out holiday turkeys. The company wisely reinstated the tradition the following year.”
In order to manage employee entitlement perceptions, like the turkey example, organizations should separate financial rewards from the tradition of holiday recognition and instead provide a form of recognition that can be maintained each year, Merriman added.
“The trick is finding something that can be maintained—even in lean years—but still has value to employees. Here are two creative things a company might consider: providing free on-site car washes to employees for the day or providing free on-site gift wrapping. Of course, most employees would most value some extra paid time off during the holiday season if possible!”
Although general recognition such as parties and gifts can be expected to improve morale and help employees feel support from their organization, most of the benefits come in the form of positive assessment and appreciation, said Robert T. Brill, an associate professor psychology at Moravian College.
Because this show of holiday recognition is general and not tied to any one employee’s work, employers should not expect it to impact employees’ work habits, Brill said. “It will go a long way toward morale and the worker's sense of commitment and gratitude to the employer, but changing performance usually will require a more ongoing, systematic approach to performance feedback and management. A one-time reward for basically being a part of the organization does a great deal for attitude and emotional connection, but little for long-term performance change.”
Although many organizations may not have time for it during the hectic holidays, Brill said individual recognition—such as performance bonuses instead of blanket holiday bonuses—by employers would be most effective at improving motivation.
Eisenberger stressed that it is important for employees to feel supported all year, not just around the holidays.“If people aren’t supported and card about the rest of the year and then a show of that is made just around holiday time, it isn’t taken very seriously,” he explained. “If you just do it on one occasion during the year, it’s not going to have much effect. It needs to be part of a pattern of indicating that employees are valued and cared about. It’s just like with relatives, you can’t be nice to relatives on the holiday and not be nice to them the rest of the year.”
The Society for Industrial and Organizational Psychology (SIOP) is an international group of nearly 8,000 industrial-organizational (I-O) psychologists who study and apply scientific principles concerning workplace productivity, motivation, leadership and engagement. SIOP’s mission is to enhance human well-being and performance in organizational and work settings by promoting the science, practice and teaching of I-O psychology. For more information about SIOP, including a Media Resources service that lists nearly 2,000 experts in more than 100 topic areas, visit www.siop.org.
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