A HAMPSHIRE-based insurance giant has splashed out more than a quarter of a million pounds - on Christmas presents for its hard-working staff.

Every one of its 1,800-strong workforce at Skandia Life Assurance, with headquarters in Southampton, has received a hamper packed with food and drink.

The gesture was made to say "thank you" to everyone who helped the company achieve a record year.

Each hamper weighed 17kg and included four bottles of alcohol, chocolates, biscuits, mince pies and a Christmas cake.

Skandia has already made an impact on the city with its Christmas lights display, featuring reindeer pulling Santa's sleigh at the top of its office block by the Civic Centre.

Personnel manager Roger Jones said: "The reason we did it this year is because our new business is up around 70 per cent on last year.

"It's certainly going to be our biggest year, in terms of new business, ever.

"It means people have been working really hard and we just wanted to show we appreciated it and to say happy Christmas.''

Mr Jones declined to reveal how much the company spent on its festive cheer but said a figure of at least £100 per hamper would be close.

"Three figures per hamper and then of course we pay tax on that because it's a benefit in kind so that's 40 to 50 per cent tax," he said.

The company also had to hire temporary staff to help deliver the hampers, adding to the estimated £270,000.

Skandia is celebrating after generating new business worth £266 million for the first half of the year.

Mr Jones added: "We've had a good year and as an organisation we've always tried to do that. For our 21st birthday in May we took everyone to the Millennium Dome with their kids and partners."

He hoped other big companies took notice of their employee relations policy.

"People talk about valuing their employees but don't show it. It's just the little things, like at Easter we gave everybody an egg and that cost us a tenner each.

"You don't want to do it all the time but we've written so much new business, we had to do something."

The hamper bonanza was given a cautious welcome from employee relations experts.

Gail Taylor, personnel expert and managing director of consultancy firm First People Ltd in Fareham, said a reward system should not be feast or famine.

But she added: "We consider that a Christmas gift is a excellent idea and is a tangible way of expressing praise but employees also welcome praise and encouragement throughout the year.''

Delighted staff at Skandia welcomed the surprise hampers.

Recruitment assistant Cally Ball said: "I was really pleased, there's loads of stuff in there and it's really handy."

Daniel Holmes, from technical support, said it encouraged loyalty - "It adds to it," he said. "It makes you want to stay with the company. It was really nice. There was more in it than I thought there would be."