The Benefits of Gift Cards for Employees and Employers

gift cards and vouchers work for many occasions

From birthdays to rewards, here's the benefits of giving gift cards to your employees...

Large cash bonuses often make the news, recently retailer Games Workshop announced that this year their shop workers, model makers, designers and support staff will get a £5,000 bonus each after an increase in profits (The Guardian).

The attention these receive can create the impression that a large cash reward is the best way to recognise employees, but is cash really king? This question has been much debated recently, with many suggesting that although a cash bonus is often much appreciated at the time, it often gets absorbed into household bills so is less memorable than other options, like gift cards, vouchers, or experiences.

If you want to use rewards to encourage certain behaviours, then a gift card or voucher maybe better than cash. According to the International Society of Performance Improvement rewards can increase employee performance by an average of 22%, while team incentives increase performance by as much as 44%.

But gift cards don’t just have to be saved for rewards, they are also great for special occasions like Christmas, Birthdays or Engagements.


Here’s the benefits of giving gift cards for employees and employers:

Allowing employees to treat themselves:

When you give your teams a gift card or voucher, it can allow them to spend it on something they may have been wanting to purchase for a while, but without worrying that it would be better spent going towards a bill or savings.

They remember it more:

As gift cards or vouchers are often put to something tangible or experiences, it can remind your employees of your business, what you did for them, and the hard work that got them a reward.

Easier to talk about with colleagues and friends:

It can be difficult to talk about cash bonuses with our colleagues and friends, but a voucher or other incentives are something tangible they can talk about, without the stigma. This can allow your employees to talk about their achievements more easily, while creating a positive impression of your company which can help with attracting and retaining talent.

Flexible for any budget and occasion:

The perfect thing about gift cards compared to physical rewards is that they can be tailored to fit your budget, whether you want to spend £10 or £100. You could treat all your teams to a coffee on a Friday with a gift card to a coffee shop, or if you wanted to say Happy Birthday to a long-standing member of your team you could treat them to a voucher, they can spend on a restaurant to celebrate.

Potential tax savings:

In 2016, HMRC introduced trivial benefits to allow businesses to gift staff small perks including Christmas and Birthday presents without having to pay tax or national insurance. These have to be less than £50 per employee and cannot be cash voucher. It also can’t be given as a reward for their work.

So, if you want to celebrate an occasions like Christmas, Birthdays, or a surprise treat for the Summer, then you can give your employees gift cards as a trivial benefit and save money on taxes.


How we can help you offer gift cards or vouchers:

Organising gift cards or vouchers may seem like hard work, but we can help. We’ll support you in creating a reward package that reaches and engages your staff and creating a positive workplace experience for everyone.

With over 80 brands to choose from, our range of gift cards and eVouchers give your employees a huge choice in where to spend their voucher, so there really is something for everyone!

Discover our range of employee rewards for motivating your staff


The Guardian
International Society of Performance Improvement