The holidays are a time for giving, and giving can extend beyond your personal life into your professional one as well. Have you ever wondered why some businesses give their clients, employees, and business associates holiday gifts? Is it just a kind gesture, or is there something more to it?

 Turns out, there is some underlying psychology behind it. By sending your clients and employees gifts, you can create a positive association with your brand that will lead to more business down the road. But how does it work? Keep reading to find out.

 The psychology of giving gifts

 Gift-giving stems from social exchange theory, which claims that people engage in relationships with others to maximize their own benefits. In other words, we give gifts to receive something in return, whether it's love, appreciation, or simply goodwill.

 Research shows that giving collectible gifts on holidays can greatly boost morale and show appreciation. Showing your employees or clients that you care about them doesn't just make them feel good; it's good for business too. Here are some reasons why businesses award gifts during the holidays too.

1. It's good for business

 Building strong relationships with clients and employees is important for any business. A holiday gift is an excellent way to nurture those relationships and keep your business top-of-mind. When clients receive thoughtful collectable gifts from you, they'll be more likely to think of you when they need your products or services. In contrast, employees will feel appreciated and valued.

2. People enjoy receiving them

 Undoubtedly, most people enjoy receiving gifts, especially during the holidays. Seeing the joy on someone's face when they open up a present is one of the best parts of gift-giving. When you give someone a gift, you're not just making them happy at the moment; you're also bringing them the happiness that will last long after the holiday season is over.

3. It boosts employee morale

 A recent study by HR Management found that 86% of employees believe that receiving recognition boosts their morale. And what better way to acknowledge their work than by giving them collectables and gifts during the holidays? It is a gesture that lets them know you appreciate all their hard work and commitment, especially during the busiest time of year.

4. Productivity rises among employees

 In addition to boosting morale, sending holiday presents to your employees can also increase productivity. When employees feel appreciated, they are more likely to go the extra mile and put forth their best effort.

5. It helps in stress reduction

 The holidays can be stressful for everyone, from dealing with family members to shopping for presents on a budget. Employers often gift a holiday to their employees as a token of appreciation and as a way to demonstrate their concern for the well-being of their employees.

6. It creates a healthy work environment

 A healthy work environment is essential for businesses of all sizes. But creating a healthy work environment doesn't just mean providing ergonomic chairs and desks. It also means creating an emotionally-safe space where employees feel valued and appreciated. And sending a gift collective at holiday time is one way to show your employees that you care about their physical and emotional well-being.

 Showing your appreciation for your employees' hard work will help strengthen the relationships between you and them. These strengthened relationships will carry over into the new year and help create a positive work environment where everyone feels valued.

Bottom Line

 Now you know! The psychology behind why businesses should give their clients and employees holiday gifts. It’s not just a kind gesture; quite a bit of thought goes into it.

 For clients, gifts show that you appreciate their business and are willing to invest in the relationship. For employees, gifts can be a great way to show appreciation for a job well done or to motivate them to meet future goals.