I work for a small business that makes $10M in profit last year. Read the message my CFO sent to me when I mentioned I was getting a $25 gift card for an employee.

Title: The Value of Employee Recognition: A Lesson from the CFO’s Perspective

In the world of small business, the balance between cost management and employee satisfaction can often be a tightrope walk. Recently, I encountered a fascinating situation at my workplace—a small enterprise that boasted a remarkable profit of $10 million last year. While discussing plans to recognize our employees on their birthdays with $25 gift cards, I received a rather unexpected response from our Chief Financial Officer.

He expressed his concerns about establishing a precedent by introducing gift cards as a form of birthday recognition. His message was clear: “We’ve never done gift cards for birthdays. While the thought is nice, I don’t want everyone to expect the same in future.”

What he didn’t realize is that I’ve been quietly giving birthday and work anniversary gift cards to my team for the past two years. They come from my own budget, yet the organization remains financially stable and thriving. With 130 employees on our roster, including management, the potential cost of recognizing each birthday with a $25 gift card would amount to about $3,250—a figure that appears daunting to some, but seems reasonable when considering the immense value of employee morale and appreciation.

Interestingly, some may argue against the tax implications of gift cards. However, the core of the issue isn’t about tax deductibility. It’s about fostering a culture of appreciation and recognition within our company. Giving small tokens of gratitude, such as gift cards, can significantly impact employee engagement, job satisfaction, and ultimately the productivity of our team.

Moreover, I find it somewhat ironic that while the CFO expressed reluctance over budget allocations for employee gifts, he recently took a week off to enjoy a college sports event in Texas, courtesy of company funds. It raises a thought-provoking question: where do we draw the line between appropriate spending for team welfare and personal leisure?

In a competitive landscape where talent is increasingly valuable, recognizing employees doesn’t have to come with exorbitant costs. Simple gestures like gift cards can foster a stronger bond between management and staff, creating a more positive work environment. As we navigate the complexities of running a business, let’s not overlook the power of a little appreciation—after all, investing in our employees is ultimately an investment in the future of the company.

In conclusion, maintaining open lines of communication about employee recognition can enhance workplace culture and ultimately drive success. It’s worth considering how small, thoughtful incentives can lead to long-term happiness and loyalty among employees—one gift