2.5 million unwanted Secret Santa gifts go straight in the bin – worth over £32 million

Most employees are fed up with the annual Secret Santa memo and prefer to spend on priority festive outgoings like food and gifts for family.

Less than half - 44% - will take part this year, compared to 50% in 2023

Average cost of gift is £14 but up to £35 among younger people

Brits bin 2.5 million unwanted Secret Santa gifts - costing a total of £32 million 

Workers would prefer a gift card they can spend as they wish

This week sees millions of workers gift each other Secret Santa gifts but a study by Love2shop has found the true cost of this annual tradition is much more costly than thought.

It’s considered a harmless workplace festive tradition but research has show 2.5 million unwanted Secret Santa gifts go straight in the bin – equating to a staggering £32 million worth of items.

It's also adding to the woes of employees who often see it as an extra festive expense they could do without as the cost the living rises, with an increasing number now opting out. 

Last year half of UK employees took part in a Secret Santa, but this year that's fallen to 44%, according to the nationwide survey.

The cost of Secret Santa gifts remains at an average of £14 per item, according to the research. Older colleagues spend a more modest amount, with the survey finding 55–64-year-olds intending to spend on average just a tenner.

The only age-group embracing the tradition with enthusiasm is 18–24-year-olds who are splashing the cash, increasing their average gift value from £23 up to £35.

But for many Brits this year it's an extra expense many could do without with some asserting that more important festive spending like the Christmas food shop and family gifts, is taking a priority this year as they drop Secret Santa.

“Secret Santa is just another tradition losing relevance in the modern workplace. Not only is it another expense at this time of year, but our study has shown it has a wider impact too," said Frank Creighton, Director of Business Development for Love2shop. "Millions of unwanted gifts are thrown away and have a negative environmental impact too.”

He adds: “There’s real value both financially and in being kind to the planet in simply giving a gift card or voucher, and our research finds this is increasingly popular and flexible. 

"Far from being unimaginative; the Secret Santa recipient can spend it on something they actually want and will enjoy - this can include festive essentials like food shopping too.”

The Love2shop survey also looked at office Christmas parties and found more workers than ever (63%) don't want a festive celebration this year – a 7% increase on 2023.

Almost 9 in 10 (87%) of workers would choose a Christmas bonus or gift card over a staff party in 2024 – up 4% from 83% last year.

HMRC actually allows businesses to give each employee a non-cash gift up to the value of £50 with no paperwork, no NI contribution and no tax.  

It’s called the Trivial Benefits provision, and Love2shop has launched a handy calculator to show you how much your business could save in tax by giving gift cards at Christmas instead of cash or other taxable bonuses.  

Visit business.love2shop.co.uk to see the full range. 

Next time you go Christmas shopping show the staff some love

 

Why? Because according to recent research retail workers are feeling very undervalued and under appreciated.

Millions of UK workers who feel undervalued by their bosses are on the brink of quitting their jobs, according to a major annual study of employee happiness in the workplace. 

Around 6.5 million Brits who feel underappreciated by their bosses are actively looking to leave – up a million on 2023.

And the picture does not look good for the retail sector, with in excess of 8 in 10 (85%) workers revealing they feel undervalued in the workplace.

The third annual Love2shop Employee Value Report learned 82% of all UK workers who claim to feel undervalued were already preparing to leave their current employers. 

Love2shop’s Employee Value Report asked workers all over  the UK how feeling valued affects their work and whether rewards and recognition have a positive impact on them.

And as the cost of living remains a real concern for workers, with 71% stating that if they received a gift card or bonus from work they would spend it on the weekly shop, clothes or back-to-school essentials.

Lunchtime yoga, dogs in the office, pizza parties and work nights out are ineffective and viewed as being reflexive gimmicks to solve issues around employee appreciation and value, according to the findings. 

Instead, beyond a salary rise, workers actually want more flexible working (20%) and days off (20%), and gift cards or shopping vouchers (18%) to spend on essentials - unchanged from the last three years.

Love2shop's Frank Creighton told us “Retail workers were just behind employees in finance in terms of the most unhappy workers in the UK. Not being acknowledged for their contribution to the business is the top reason for feeling under-appreciated, followed by feeling underpaid (33%).

He added: "But thinking about this solely as a wage issue would be mistaken. We found 29% of people feel undervalued because ‘loyalty is a one-way street’ – meaning they feel employers demand their loyalty but will axe their jobs without even a second thought. A quarter of people also cited the lack of a simple ‘thank you’ as a significant problem."

As well as the increase in unhappy workers generally this year, the survey also discovered the looming employment crisis in education and health refuses to go away despite recent pay settlements.

It revealed 74% of education workers and 71% of healthcare professionals are considering leaving their professions due to feeling undervalued. It is also reflected in the private sector where 89% of finance workers and 85% of retail workers are also seeking ways to leave.

This year the survey found that Northern Ireland has the happiest workers in the UK, with Belfast the happiest city.

While unhappiness grew in last year’s worst performing city – Liverpool – it was eclipsed by Plymouth, where over a third – 36% of workers – said they felt underappreciated at work.

Frank Creighton went on to say: “We have been doing the report for a number of years now and the data clearly shows loyalty, productivity and happiness increase with employers who put the right reward strategies in place. Those businesses grow and thrive more readily than businesses that do not show employees they are valued.

“Employee expectations have changed. If businesses do not change with them, they may very soon find themselves falling behind."

Love2shop’s expert team has helped more than 150,000 businesses create effective reward and engagement strategies for more than 50 years. 

https://business.love2shop.co.uk