How Technology is Reshaping Corporate Employee Gifting

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How Technology is Reshaping Employee Gifting

Team AdvantageClub.ai

May 23, 2025

EMPLOYEE ENGAGEMENT

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The practice of giving and showing respect to others has existed for ages. Going back to ancient times, traders and businessmen in Egypt gifted each other during business deals as it strengthened friendships and relationships with people. Moreover, rulers and emperors showed their power and strength in large kingdoms by offering expensive presents and building alliances with other kingdoms. As the industrial age came, gifting clients, partners, and employees became a common practice and has been there since. Also, it has further evolved and will keep growing in the coming future.

The Digital Revolution in Gifting

In recent times, many startups have emerged in the Indian gifting market, offering digital means to carry out corporate gifting. The corporate gifting industry is growing at an exponential rate, with many companies trying unique ways to appreciate their employees during festive seasons. Moreover, the number of companies that do corporate gifting is also rising.

The fast adoption of digital ways of gifting employees is due to the scale of gifting that can be done in a large organization. Moreover, it also allows employers to personalize the gifting experience for their workforce by giving them a wide choice of offerings as per employees’ preferences. Digital gifting platforms are equipped with features that allow employees to choose their gifts, which provides them with flexibility.

Employee Gifting in the Modern Business Landscape

The time of Employee Gifting is crucial for many employers as it is an opportunity for them to express appreciation and gratitude to their employees for serving in the organization. It is also an opportunity to strengthen bonds between the employees and the employer.

Recognition

Employee Gifting is an act of appreciation and recognition of employees’ hard work. In spite of many efforts, it is very hard for an employer to recognize each and every employee’s efforts in the organization. Employee Gifting presents an opportunity for employers to recognize all their employees for the contributions they have made in the past years.

Motivation

Giving a gift to an employee is more like a gesture where employers appreciate employees for their ongoing efforts and work. Such gestures motivate an employee to work harder. When employees feel appreciated, they get motivated to perform their work to the best of their abilities, which further helps in enhancing their performance.

Increase Employee Retention

Money is one thing, but gestures like receiving a special gift or token of gratitude from your employer are memorable moments. Such moments and gestures are something that an employee remembers and cherishes. This makes the bond stronger, thereby increasing employee retention.

How Tech is Changing Employee Gifting

Like in any other field, new-age technology such as Artificial Intelligence (AI), Machine Learning (ML), and Augmented Reality (AR) is continuously reshaping corporate gifting and giving employers additional choices for showing gratitude to their employees.

Online Gifting Platforms

In the last few years, many digital rewards platforms have emerged that give curated employee gifting solutions to organizations. The HR team can simply use these platforms to select a customized range of employee gifting options and place an order as per their choice. It cuts down on their administrative tasks and logistics as the platform delivers an end-to-end service. Companies can also use AdvantageClub.ai’s personalized corporate employee gifting platform , which has more than 10,000 categories of brands to choose from, such as clothing, entertainment, education, well-being, and many more. Employees earn reward points through good work, and managers can also give away reward points to employees on the platform, which can be further redeemed for gifts of their choice on various products and services ranging from clothing, entertainment, education, well-being, and many more.

Enhancing Personalization:
The beauty of the digital age is that it can also give relevant data on users' preferences. In turn, platforms can analyze and optimize this data and pose recommendations. For instance, a digital rewards system collects and analyzes user data to track their preferences. It would be ideal to present employees with gifts that are relevant to them. Such platforms can create relevance and recommend gifting options per employees' preferences. The R&R (Rewards & Recognition) platform AdvantageClub.ai has personalization capabilities. Analyzing the user’s browsing history, purchasing history, and platform interaction history can suggest personalized gifts to employees based on their preferences and choices. Just like how streaming platforms recommend content that matches user’s preferences. Learn more about the benefits of digital rewards.
Virtual Gifting:
Adopting the remote working model introduced us to new ways of rewarding and gifting employees. Since many employees preferred working remotely, companies used e-gifts, vouchers, and digital points to show gratitude to their employees and recognize their hard work. Many find this the best way. Employees can use these vouchers and gift cards of their own accord, giving them a choice on how they want to get rewarded by redeeming these vouchers and digital points on various popular brands.
Saving Logistics & Admin Cost:
Incorporating technology reduces administrative costs and logistics efforts. As an HR, using traditional ways of gifting employees during festivities like Diwali becomes hectic. Since you need to monitor the entire process, from the procurement of gifts to ensuring that the employee receives them, using digital gifting options can streamline your process. A platform like AdvantageClub.ai takes away your worries by curating the best gifting options to manage the logistics of your employee gifting process. It reduces administrative costs and saves time.
Leveraging Data Analytics:
HR no longer has to guess what employees might want as gifts. Data analytics is helping organizations make better and more personalized decisions when selecting meaningful employee gifts. HR can analyze past data to identify trends, preferences, and patterns in employee gifting. They can get insights into factors such as age, role, or location and employee preferences such as tech gadgets, wellness products, or unique experiences. Data related to timelines, inventory, and channels can help companies avoid unnecessary expenses and delays. Companies can also optimize their budgets by identifying which gifts have the greatest impact on motivation and morale and a higher ROI. Learn more about How AI is revolutionizing HR analytics.

Common Pitfalls in Digitizing Employee Gifting

Technological advancement has taken some worries away for organizations and adds value with additional benefits. Technology gives everything from automating specific processes to providing a better digital experience. But we need to be cautious about certain things.

1. Data Privacy Challenges

Though technology presents lots of benefits to Employee gifting, there are certain things that organizations need to keep in mind. Digitizing the employee R&R system also brings challenges, and companies should make note of that. It involves collecting preference data, which raises data privacy challenges. Employers need to be mindful that certain information can also be private. Organizations must maintain that such information does not get into the wrong hands and be misused. Also, the company must adhere to the country’s data privacy and cyber laws.

2. Carbon Emission and Electronic Waste

Digitization does help in reducing physical waste in the wrapping and packaging of products. However, it can also lead to carbon emissions and electronic waste. Organizations should start thinking about using eco-friendly packaging methods, which would cause less harm to our environment.

Future of Employee Gifting

Technology will further make things exciting with the emergence of AI, Virtual Reality and Augmented Reality. These technologies will further enhance the experience of employees and will take it to a different level when it comes to being rewarded and recognized.

1. AI

Since Artificial Intelligence (AI) is rapidly progressing, the world is moving towards hyper-personalization. The term may look fancy, but it is simple to understand. AI can now analyze preference data further to give more accurate recommendations to people. For instance, if an employee is interested in reading history or knowing historical facts, the platform may offer options such as books on history that interest the individual. Likewise, if the employee is interested in sports, the AI can know which sport it is and recommend gifts based on the preference information.

2. AR & VR

Augmented Reality (AR) and Virtual Reality (VR) are emerging. It shows excellent prospects for giving employees a more immersive digital experience. Combining AR and VR can create a virtual world where employees can interact more precisely. Just as some companies have created their ai-powered platform, especially for engaging new employees, something similar can be done to employee gifting. Such technology can give close to a physical experience of opening and unwrapping gifts using VR glasses or smartphones. It can be advantageous to employees who are working remotely.

Technological advancement is showing some significant signs of further enhancing the motivation level of employees. Also, it frees up HR to work on more strategic areas to deliver for the business and its people. Technologies like AR, VR, and AI are making rapid progress, streamlining the process of employee gifting and enhancing various aspects of the overall employee experience.

Now that employers are more open to leveraging technology to meet employee engagement goals, they may increasingly adopt emerging technologies in the employee gifting sector for better results.