Benefits of Gift Cards for Employers and Employees
If you are looking to offer rewards to promote certain behaviors then the gift card or voucher might be more effective than cash. As per the International Society of Performance Improvement rewards can boost employee performance by around 22% on average and team rewards can boost productivity by up to 44%..
However, gift cards don’t only need to be kept for rewards. They’re ideal for occasions like birthdays, Christmas or even engagements.
Here are the advantages of employee gift cards.
Employees are allowed to pamper themself:
If you present your team with an gift card or voucher they can use it to purchase something they’ve wanted to buy for a while, not worrying that it might be better put towards a payment or savings.
They will be able to recall it better:
Because gift cards or vouchers are typically used to things that are tangible or experience-based that remind employees of your company as well as the things you did for them, and also the effort that earned them an award.
Easy to discuss with your friends and colleagues:
It’s not easy to talk about cash rewards with friends and colleagues However, vouchers or other reward is tangible items that people can discuss and without embarrassment. This will allow employees to discuss their accomplishments more readily and create an image of positivity for your company , which could assist in attracting and retaining employees.
Flexible to any budget or event:
The best aspect of gift cards as compared to tangible rewards is that they can be customized to meet your budget requirements and budget, regardless of whether you’d like to invest £10 instead of £100. It is possible to treat all of your employees to a cup of tea on a Friday, with an gift card to the local coffee shop or to wish a Happy Birthday to a loyal member of your team, you could present them with a gift voucher that they can use at dining out to mark the occasion.
Potential tax savings
In 2016 HMRC introduced benefits for trivial expenses to give businesses the ability to offer employees small rewards like birthday and Christmas presents without the need to pay taxes and national tax. They must not exceed £50 per employee, and can’t be cash-based vouchers. They also cannot be used as a reward for job.
If you’re planning to mark special occasions such as birthdays, Christmas or give a gift to your guests during the summer months, you could give the employees gifts cards to give as an unimportant benefit, and also help them save on taxes.