Own a Small Business? Why It Pays to Give Cash Gifts During the Holidays

You really can't go wrong with good old cash.

At this point, many people are deep into holiday mode. And if you own a small business, you may have already decorated your storefront with lights or taken other steps to ring in the holiday spirit.

Meanwhile, if you have a dedicated team of employees who consistently go the extra mile for you, then you may be looking to give them gifts later this month. That's definitely a nice thing to do. Not only does it show that you care, but it could also inspire your employees to stay put rather than pursue new job opportunities that may arise in 2023.

But if you're going to give out holiday gifts, it pays to stick to cash rather than hand-pick different items to give out. Here's why.

It's really the best bet all around

Cash gifts for the holidays might seem impersonal at first. But chances are, they're your best option for a number of reasons.

First, a lot of people are struggling to keep up with their bills these days. Inflation has made just about everything from food to transportation to utilities more expensive. And so if you give the gift of cash for the holidays, it might actually help spare your workers additional financial stress.

Also, you never know when a well-intended gift may not be a good fit. Let's say you decide to buy gourmet chocolates for your team. If you have an employee who's allergic to dairy, or to nuts (which may be in said chocolates), that's a gift your employee won't get to enjoy.

Similarly, you might decide to give everyone on your team a really nice bottle of wine or champagne. But if you have team members who don't drink alcohol, that, too, won't work.

Furthermore, even gifts where health issues won't come into play (after all, no one is allergic to mugs or serving platters) may not be all that appreciated. You might give everyone on your team a nice pitcher or vase. But if you have a worker who lives in a tiny apartment with zero storage space, that gift might end up being a source of stress.

And also, think about how your employees get to work. If some of your staff members take the bus, then a bulky gift will be difficult to transport.

That's why it really does pay to stick with cash for holiday gift purposes. That way, your employees can take the money and use it as they see fit. If they want to cover bills, great. If they want to put that cash toward a vacation, that's also great.

Make your life easier

Giving out cash gifts for the holidays may seem like the easy way out. But who says that's a bad thing?

Given how much your employees are likely to appreciate cash, there's nothing wrong with sparing yourself the hassle of going out and rounding up creative items. If you write out some checks or stick cash in a series of holiday cards and call it a day, there's a really good chance your gifts will go over very well -- and that your employees will be truly touched by your generous gesture.