When it comes to the impact of employee engagement on a business, the evidence is clear. Companies with engaged employees have 23% higher profits and 78% less absenteeism (Gallup).
In cooperation with Ray Rodriguez, a 40-year veteran of the promotional products industry, we’ve introduced a strategic initiative called the Employee Engagement Fund (EEF) for branded merch distributors.
This new program redefines how promotional products are positioned within the fast-growing employee engagement space. It is estimated that 46% of companies purchase promotional products as part of their employee engagement program (Zipdo).
The Employee Engagement Fund™ (EEF), is a turnkey model that leverages proven principles from the Fulfillment Centric Leadership™ method.
Software-led recognition platforms are increasingly positioning themselves as the “system of record” for recognition. When they control the program, they influence the spend, and branded merchandise becomes commoditized, or substituted. Companies with structured recognition programs have 31% less voluntary turnover (Deloitte via Ambition), offering a strong business-case for distributors to drive incremental sales of branded merch for funded engagement programs.
EEF helps the promotional products distributor provide a modern, strategic approach making branded merchandise indispensable by tying it to intentional recognition strategy, not ad-hoc ordering.
What EEF Is
The Employee Engagement Fund (EEF) is a supplier-sponsored growth initiative that equips distributors to sell branded merchandise as part of an intentional employee recognition strategy, not as one-off “swag” orders.
The EEF program helps distributors move beyond transactional selling and engage their corporate clients more strategically. By linking recognition programs directly to employee performance and retention outcomes, EEF equips distributors to deliver measurable business impact while expanding the size and scope of revenue opportunities for distributors and suppliers.
“What excites me most about the EEF program is the opportunity for distributors to elevate their relationships with clients, becoming trusted partners who help drive stronger cultures and more profitable business outcomes.” Ray Rodriguez, Founder, CEO 5PPromo.
Crystal D has been named the first exclusive supplier partner in the recognition and awards category. A limited number of additional suppliers are in discussions to participate, with each granted exclusive category status through 2026. Participating suppliers receive preferred placement in product recommendations and co-marketing exposure with distributors and end-user clients. Participating suppliers contribute financially to support program development and activation, with upside tied to increased sales growth and thought-leadership visibility.
The EEF model is a direct response to growing disruption from SaaS-based employee recognition platforms, with a $38.9B market (MarketGrowth) already surpassing the U.S. promotional products industry at $27.1 B in 2025 (PPAI). These software vendors are rapidly targeting mid-market and SMB accounts. This shift threatens not only employee recognition sales but also the broader use of branded merchandise in culture-building and employee retention efforts.
Software-Based Merch Doesn’t Improve Engagement
While recognition is in full swing when it is software-based, it’s not moving the needle on engagement. Most U.S. employees say they’ve been recognized in the past year (86%) (MarketGrowth Reports), yet engagement has slid to roughly 31%, near a 10-year low, suggesting that recognition without human-led connection doesn’t deliver the culture lift leaders expect. It’s akin to hitting “the easy button” on recognition, yielding limited results. And while access to recognition software tools has grown, only about a quarter of employees say the recognition they receive feels consistent and genuine, reinforcing that the “head and heart” aspect is what connects recognition to engaged employees. (SelectSoftware Reviews Gallup.com)
The recommended approach is structured, values-aligned recognition delivered by managers and peers, not just points and platforms. Companies with effective, structured recognition programs see 31% lower voluntary turnover, a business outcome any mid-market CFO welcomes.
EEF equips promotional products distributors to respond. Rather than acting solely as branded merchandise providers, participating distributors are positioned as strategic advisors to HR and leadership teams. End-user clients implement an annual employee engagement budget through a distributor ranging $200–$500 per employee, allocated across a curated mix of branded merchandise, recognition awards, experiences, and education.
“Crystal D is proud to embrace the Employee Engagement Fund strategic initiative as the exclusive supplier in the recognition and rewards category. It’s more than good business for us. The FCL engagement strategy clients are taught aligns with the values of our founder, Chuck Dahlgren, reinforcing the culture we live each day at Crystal D.” Bridget Dahlgren, Executive Vice President, Crystal D.
Bernie Borges, founder of Fulfilled@Work Academy, partners with distributors as an EEF Education Resource to help them sell the program by delivering end-user education sessions (typically virtual) that:
- explain the ROI impact of improved engagement
- connect recognition to retention and performance outcomes
- show why “intentional recognition” works (and why randomness fails)
The EEF model includes tools to track ROI, such as reductions in turnover and gains in productivity, demonstrating financial returns that justify the per-employee engagement investment.
For distributors, EEF offers a pathway to elevate client relationships from tactical to strategic with long-term potential. For suppliers, the program provides category exclusivity through 2026 and preferred placement in a high-growth budget category. For midmarket and SMB buyers, EEF offers a simple way to integrate branded products with modern employee engagement practices that have measurable business impact.
“I’m honored to partner with promotional product distributors and select suppliers to bring forward solutions that deliver a measurable impact on employee engagement, retention, and performance.” Bernie Borges, founder, CEO, Fulfilled@Work Academy™.
Private executive briefings are available to suppliers and distributors interested in participating in the EEF program. To learn more, contact Bernie Borges at Fulfilled@Work Academy™.
