If you’re looking to utilize rewards to promote certain behaviors, then the voucher or gift card might be more effective than cash. Based on the International Society of Performance Improvement rewards can boost employee performance by around 22% on average While team incentives boost the performance of employees by up to 44%..
However, gift cards don’t only need to be stored to earn rewards. They are ideal for occasions like birthdays, Christmas or engagements.
Here are the benefits of gift cards to both employers and employees:
Employees are allowed to pamper themself:
If you present your team with an gift card or voucher that they receive, it will allow them to use it for something they’ve wanted to buy for some time, but not worrying that it might be better put towards a payment or savings.
They will be able to recall it better:
Since employee gift cards and vouchers are typically used to things that are tangible or experience-based they can remind your employees of your company as well as the things you did to them, and the effort that earned them an award.
Easy to discuss with your friends and colleagues:
It’s not easy to discuss cash bonuses with our friends and colleagues however, a voucher or other incentive is tangible items that people can talk about with no stigma. This will allow employees to discuss their achievements with ease and also create an image of positivity for your business, which will assist in attracting and retaining employees.
Flexible to fit any budget or occasion:
The best aspect of gift cards as compared to rewards that are physical is they can be adapted to meet your budget requirements regardless of whether you wish spending £10 and £100. You can treat all your employees to a cup of tea on a Friday by gifting them the gift card for the local coffee shop or to wish 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.
Tax savings that could be possible:
In 2016 HMRC introduced benefits for trivial expenses to give businesses the ability to offer employees small gifts like Birthday and Christmas gifts without the need to pay taxes and national tax. They must not exceed £50 per employee, and can’t be cash vouchers. Also, they cannot be offered as a reward to employees for their 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 can offer to your staff members gift certificates to give as an easy way to reduce taxes.