AllStar has argued that corporate gifts and employee incentive programs serve different purposes and should be planned accordingly.

The company’s April 20, 2021 guidance describes a corporate gift as an expression of appreciation that does not require the recipient to meet a performance condition. Examples include a holiday, birthday or anniversary gift, as well as an unexpected gesture of thanks.

In the incentive structure outlined by AllStar, employees instead earn rewards under stated rules linked to individual or team objectives. Recognition can come from managers or peers and may be shared publicly within the organization.

AllStar recommends starting a structured program by defining business objectives and identifying the employees whose activities affect them. It then sets out audience input, rules, budget, reward selection, communication, tracking and fulfillment as parts of the planning process.

Evaluation follows delivery: sponsors need to measure results against the purpose established at the outset. The company also calls for communication throughout the program rather than only at launch and completion.

The distinction is relevant to employers purchasing corporate gifts or employee reward services. A gift can mark appreciation without an earned condition, while a performance incentive needs participants to understand what they must do to qualify.