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Gift cards for employees are a powerful tool for recognition, playing a key role in boosting workplace engagement, satisfaction, and retention. A Gallup study found that well-recognized employees were 45% less likely to leave within two years, and the Great Place to Work® Trust Index™ survey identified recognition as the top driver of great performance.
Among the many forms of employee rewards, gift cards stand out as a flexible, convenient, and cost-effective option. They offer employees the freedom to choose what’s most meaningful to them, making recognition more impactful, contributing to lower turnover rates.
Want to maximize the power of gift cards in your rewards program? Read on to explore their benefits, popular options, best practices, and strategies for seamless integration into your workplace.
The benefits of gift cards for employee recognition
Gifts can be tricky to get just right. Cash can be too impersonal, and physical gifts often require time and effort to match individual preferences. Gift cards strike the perfect balance — they’re thoughtful, engaging, and provide employees the freedom to choose the rewards they really want.
Below, we’ll dive into some of the key benefits of using gift cards to boost employee recognition:
Flexibility and choice
One of the biggest advantages of gift cards is the flexibility and choice they offer employees — there’s something out there for everyone. Many gift cards can be used at multiple stores, giving employees even more freedom to choose something meaningful to them. Whether they prefer hitting the running track or unwinding with a great book, a gift card ensures they receive a reward that truly fits their needs.
Immediate gratification
Unlike bonuses that take time to process, or physical gifts that require planning and personalization, gift cards offer an immediate reward. Employees can use them right away to purchase something they truly want — no waiting, no guesswork. This instant gratification reinforces the connection between hard work and recognition, making employees feel valued in the moment and inspiring them to continue performing at their best.
Cost-effective for employers
Gift cards are a cost-effective and scalable reward option for employers and can often be purchased in bulk at a discount, making them a budget-friendly choice. With a fixed value per employee, they also eliminate the risk of unexpected costs. Plus, purchasing them online removes delivery expenses, allowing employees to enjoy their rewards even sooner. In some cases, gift cards under a certain amount may even qualify as a tax-deductible or non-taxable benefit.
Boosts engagement and morale
Did you know that employees who receive monthly recognition from their managers report three times more trust in their leadership? The most effective recognition programs combine both social and monetary rewards. Tangible rewards, like gift cards, reinforce positive behaviour, strengthening employee engagement and morale. When employees feel valued and rewarded in real-time, they’re more likely to take initiative and stay motivated.
Supports personalization
Modern workplaces are multigenerational, with diverse preferences and perspectives. Digital gift cards offer a personalized approach by allowing employees to choose retailers that matter to them, fostering an inclusive and positive company culture. According to Forbes, “Routinely appreciating employees creates a positive work culture and promotes stronger emotional connections.” Personalized rewards help employees feel valued, boost morale, and enhance overall well-being.
Top gift card choices for employee rewards
Choosing the right gift card is key to maximizing its impact. One of the biggest advantages of gift cards is their flexibility and universal appeal. Below, we explore some of the most popular types of gift cards for employees, along with examples of each:
- Retail gift cards: Perfect for everyday essentials, like clothing, personal care, home goods, and electronics. Popular retailers include Amazon, Walmart, and Target.
- Dining and food gift cards: A great way to treat employees to meals, snacks, or specialty drinks from brands like Starbucks, DoorDash or Uber Eats.
- Experience-based gift cards: Encourage work-life balance by offering access to travel, entertainment, and relaxation, with options like Airbnb and Ticketmaster.
- Prepaid Visa or Mastercard gift cards: The ultimate flexible reward, these can be used almost anywhere, both in person and online.
- Company-specific gift cards: Promote brand loyalty by allowing employees to redeem rewards within the organization, while also being easy to distribute.
Best practices for using gift cards as employee rewards
To maximize the impact of gift cards for employees, rewards should be tied to specific achievements, personalized to individual preferences, and distributed fairly. The process should also be as seamless as possible for the recipient. Discover more below about the best gift card practices to consider.
Tie rewards to achievements
While gift cards are a great way to show appreciation, their impact is even more powerful when tied to meaningful recognition. Connecting a gift card to specific achievements reinforces positive behaviours and keeps employees engaged.
Examples of achievements that can be tied to rewards include:
- Meeting or exceeding sales or performance goals
- Work anniversaries or milestones
- Completing a project or goal
- Employee training or certification completion
Regardless of achievement, gift cards are an excellent way to celebrate success and drive ongoing employee motivation.
Personalize whenever possible
There’s something especially meaningful about a thoughtful, personalized gesture — whether it’s a handwritten note or a carefully chosen gift. Going the extra mile, even in small ways, shows employees they are truly appreciated.
Personalizing a gift card by including a handwritten note or customizing it enhances its impact. Other ways to make the experience more meaningful include upgrading the packaging, presenting it creatively, or publicly recognizing an employee’s achievements.
Ensure fair and transparent distribution
Make equity a top priority and avoid favoritism by aligning rewards with performance-based criteria. To fine-tune the distribution process so it’s rooted in fairness, consider implementing the following strategies:
- Set clear, objective criteria for performance metrics that align with company values
- Use a tiered or scalable rewards system
- Regularly communicate the criteria and process to all employees
- Maintain consistency in distribution
By prioritizing clarity and transparency in how gift cards are distributed, you’ll foster a work environment where employees feel motivated and fairly rewarded for their work.
Offer a variety of options
Offering a variety of gift card options is essential to meet the diverse needs of your employees. By providing a comprehensive selection, you help ensure that every employee feels recognized.
Include a mix of popular gift card types, such as retail, dining and food, experiences, prepaid credit cards, and company-specific gift cards. Some employees may prefer a gift card to a restaurant, while others might enjoy one for fashion or home goods. Offering a range of choices allows employees to choose something they genuinely enjoy.
Make it easy to redeem
Make it easy for employees to redeem their gift cards so that the reward is meaningful and impactful. Consider whether digital or physical gift cards are more suitable, based on employee preferences and the nature of your organization.
Employees are more likely to feel recognized when their reward is relevant and easy to use, as opposed to something that requires extra effort or time to redeem. By simplifying the process, you make the gift that much more impactful and rewarding.
Using gift cards right: Avoid common reward mistakes
While gift cards offer a great opportunity to connect with and reward employees, be mindful of some common mistakes to fully reap the benefits. Watch out for the following pitfalls:
- One-size-fits-all approach: Not all employees want the same type of gift cards. Take the opportunity to learn more about individual preferences to choose a gift card that resonates with each employee.
- Lack of meaningful recognition: A gift card on its own isn’t enough; it should be paired with genuine appreciation. While physical rewards are effective, words of praise often carry just as much — if not more — meaning.
- Expiration dates and hidden fees: Choose gift cards without additional costs or expiration constraints to ensure employees can fully enjoy their reward.
- Over-reliance on gift cards: Balance gift cards with other recognition methods for a holistic approach, such as public recognition, career growth opportunities, extra time off, or performance-based bonuses.
Ultimately, you want your employees to feel genuinely cared for. As a Gallup study highlights, “Leaders must focus not just on providing recognition but on providing it with quality and consistency across their organization.”
How to incorporate gift cards into a rewards program
Rewards programs play a key role in enhancing overall employee experience, employee engagement and retention, as well as fostering a positive organizational culture. Gift cards are a fantastic addition to any rewards program and can be easily integrated with employee recognition platforms. They can be used for milestone and performance-based recognition, peer-to-peer recognition, as well as seasonal and holiday rewards.
Integrating with an employee recognition platform
Employee recognition platforms can streamline the reward distribution process by offering automation and customization, enhancing the efficiency and impact of your rewards program.
Platforms like Achievers make recognition more efficient, transparent, and meaningful — ultimately boosting employee engagement, morale and retention. Some of the key advantages of using Achievers include:
- Easy integration with your existing systems
- Automated milestone recognition for efficiency
- Personalized recognition tailored to your organization’s culture and need
Milestone and performance-based recognition
Employee recognition plays a crucial role in motivation and employee retention. Celebrating work anniversaries, project completions, and goal achievements encourages continued success. Milestone and performance-based recognition can include:
- Meeting or exceeding sales and revenue targets
- Improving customer satisfaction and retention
- Demonstrating leadership and initiative
- Reaching time-based milestones, such as work anniversaries
By incorporating employee recognition into your rewards strategy, you create a workplace where staff’s achievements are valued, fostering engagement and long-term commitment.
Peer-to-peer recognition with points-based systems
A points-based rewards system allows colleagues to acknowledge each other’s efforts and achievements by awarding points that can be redeemed for rewards like gift cards. This approach fosters a culture of appreciation, empowering employees to recognize their peers for their contributions, such as:
- Collaboration and teamwork
- Going above and beyond for a project
- Outstanding customer service
- Innovation and problem-solving
- Exemplifying company values
Peer-to-peer recognition not only strengthens workplace relationships, but also ensures employees feel valued by their colleagues while enjoying meaningful rewards.
Seasonal and holiday rewards
Embracing the festive spirit as an opportunity to reward employees creates an atmosphere of appreciation and excitement, boosting employee satisfaction, loyalty, and productivity. Gift cards can be seamlessly tied to holidays, celebrations, and company milestones, making them a versatile and thoughtful reward option.
Consider integrating gift cards for:
- Holiday celebrations, like New Year or Thanksgiving
- Employee birthdays and personal milestones
- Years of service awards
- Holiday parties or corporate events
Why gift cards are a smart investment in employee engagement
Gift cards are the ultimate investment in employee engagement and morale, offering flexibility and convenience, and serve as a key component of a comprehensive employee recognition strategy. By integrating gift cards into your rewards program, you create a more loyal and engaged workforce.
Looking for a structured approach to employee rewards? Achievers’ rewards program offers access to over 3 million reward options from over 2,500 brands. Seamlessly integrated into our suite of engagement solutions, Achievers makes it easier than ever to boost employee satisfaction, motivation, and retention — all in one platform. Start maximizing the impact of your recognition efforts today with a rewards program that employees truly value.
