Why Corporate Gift Cards are Best for Employees

Corporate gift cards should be a priority for businesses. It’s a massive industry worth billions that companies shouldn’t overlook. Using gift cards brings benefits to both the business and its employees or clients.

Gift cards offer a more meaningful way to give - allowing the recipient to choose something they truly want. In comparison, cash bonuses might get lost in daily expenses, reducing their impact. Physical gifts, on the other hand, might not suit everyone’s taste.

This article explores different types of gift cards and explains why companies should use them to engage, appreciate and recognise employees in order to help strengthen relationships in the workplace.

Types of Corporate Gift Cards

Let’s look at the differences between the two types of gift cards, as they can create different feelings in the people who receive them.

Open-loop gift cards

These cards work like cash, such as a VISA prepaid card. The term "open-loop" means the recipient can use the card almost anywhere, giving them the freedom to buy whatever they want.

Closed-loop gift cards

Unlike open-loop cards, closed-loop cards can only be used at specific stores or for certain experiences. For example, Amazon or Walmart gift cards are closed-loop because they can only be used at those retailers. Similarly, Airbnb or Southwest Airlines cards are experiential closed-loop cards.

According to the Global Gift Cards Industry report, the global gift card market, valued at $767.4 billion in 2020, is expected to grow to $1.4 trillion by 2026, with an 11.1% growth rate due to the impact of COVID-19.

Cash or open-loop gift cards don’t always work as great motivators, especially when employees earn more than the cash value of the gift. This often makes cash gifts feel less meaningful.

Here are some downsides to giving employees cash:

●        Feels impersonal

●        It's taxable

●        Often used to pay bills

●        Requires having enough cash available

On the other hand, closed-loop gift cards from specific stores or for experiences are more thoughtful and exciting. They show employees that you’ve taken the time to pick something valuable for them.

Corporate gift card programs are simple and affordable to start, no matter how big or small your business is.

Still, wondering why corporate gift cards are so popular and effective? Let’s explore more!

Why are Gift Cards Best Rewarding Gifts

Now, let's take a look at why gift cards are the best options for employees.

Easy to organise, and you can buy in bulk

Setting up an employee gifting program is important for your business growth. But it shouldn't take too much time to manage. Picking out physical gifts can be tricky since you have to guess what employees might like, buy the gifts, and then hand them out.

On the other hand, gift cards are much simpler to organise. Companies can buy gift cards in bulk, making it easier to have them ready for future occasions to celebrate employee achievements.

Gift cards are flexible

Gift cards are very flexible. People can use them at different stores without restrictions. Businesses can also personalise gift cards to match someone's preferences or add a personal touch. Plus, if someone gets a gift card they don’t need, they can easily give it to someone else, avoiding any hassle.

Gift cards are cost-effective

Gift cards are more tax-friendly than cash and are simple to manage and give out. Some gifting companies even handle everything from choosing the cards to sending them. This makes it easier for HR to set up gifting programs.

Employees feel valued and appreciated when they receive gift cards because they can choose their own gifts. This helps companies show recognition and appreciation, adding more value to the gesture.

Gift cards are sustainable choices

Sending e-vouchers is good for the environment because they don’t create waste or carbon emissions from making, packaging, or shipping. Recipients get codes or serial numbers through text or email, which they can use in stores.

Going digital saves time and helps reduce the carbon footprint that comes with physical gifts. Plus, employees can choose what they really want, leading to fewer returns and less environmental impact.

Employees can treat themselves

Getting cash might seem great - who wouldn’t want some extra money? But giving cash can feel impersonal. People might just spend it on bills or everyday expenses, which takes away the joy of a thoughtful gift. A gift card feels more special.

With gift cards, employees can treat themselves to a getaway at a nice resort or enjoy a meal at a fancy restaurant. This makes the gift feel more surprising and enjoyable. They’re likely to appreciate your gesture more because you’re giving them a chance to treat themselves.

Key Takeaway

Giving corporate gifts to employees is a great way to keep them happy and help your business grow. It shows appreciation and helps build better relationships with them. When employees receive thoughtful gifts, they often work harder.

Also, the way people buy and use gift cards is changing, and store owners need to adapt to these new trends. Sending digital gift cards to employees could be the future of gift giving.