The Benefits Of Gift Cards For Employees

3 min read

Recognising and rewarding employees is essential to fostering a positive work environment.

Among the myriad options available, gift cards for employees stand out for their versatility and potential to boost morale. 

Whether acknowledging milestones, celebrating holidays, or just a simple gesture of appreciation, choosing the right gift cards can significantly impact employee satisfaction. 

These tokens of appreciation are simple to distribute and cater to your team members' diverse tastes and preferences. 

Understanding the nuances around gift cards for employees is essential. 

These include:

  • Which are the best gift cards for employees
  • the tax implications for them
  • how much you can give an employee as a gift card

Benefits of Giving Gift Cards to Employees

Enhancing Employee Motivation

Gift cards serve as a powerful tool to boost employee motivation. 

Studies have shown that non-cash rewards, such as gift cards, motivate employees, especially those performing at lower levels. 

This is because gift cards create a more vivid and memorable reward experience. This is especially true compared to cash bonuses, often perceived as just an extension of salary. 

Cash bonuses quickly absorb into daily expenses. 

By offering gift cards, you're providing employees with something that feels like a special treat. Often providing a unique experience or purchasing something they can choose.  

This tangible recognition can significantly enhance motivation and encourage employees to strive for excellence.

Fostering a Positive Work Environment

Giving gift cards to employees goes beyond a simple transaction. It fosters a positive work environment and strengthens employee and company bonds. 

Recognising employees' hard work and achievements with gift cards creates a culture of appreciation and respect. It demonstrates that the company values their contributions, leading to increased morale and a sense of belonging. 

Customise gift cards with your company's logo and colours through platforms like Enjovia. This way, you reinforce brand loyalty and create a visible reminder of the company's appreciation. Thus enhancing the overall work atmosphere. 

Flexibility for Employees

One of the most appreciated aspects of gift cards is their flexibility. Employees cherish the autonomy to choose rewards aligning with their interests, preferences, and lifestyles. The power of choice ensures that the reward is meaningful and genuinely appreciated.

This flexibility also allows employees to take advantage of special sales, maximising the value of their gift cards. Generic gift cards add versatility and convenience.

You acknowledge their hard work and achievements by incorporating gift cards into your employee recognition program. Providing them with a flexible and meaningful reward enhances motivation, fosters a positive work environment, and offers unparalleled flexibility. 

Top Gift Card Categories for Employees

Best gift cards for employees

When selecting gift cards for employees, it's essential to consider their diverse needs and interests. Here are some top categories to keep in mind:

Retail and Shopping

Gift cards for retail and shopping allow employees to purchase items from their favourite stores. Whether it's clothing, electronics, or home goods, these gift cards cater to various personal preferences and needs. 

Dining and Food Delivery

Gift cards for restaurants, cafes, and food delivery services are perfect. Especially for those who appreciate good food or prefer the convenience of food delivery. 


Entertainment gift cards are a popular style of employee reward. 

They provide access to movies, music, and more, helping employees unwind and recharge. Whether it's a subscription to a streaming service or tickets to a movie theatre. 

Entertainment gift cards are a thoughtful way to encourage relaxation and leisure.

Health and Wellness

Promoting self-care and work-life balance is crucial, and health and wellness gift cards can play a significant role.

These gift cards encourage employees to prioritise their physical and mental well-being. From fitness classes and spa treatments to wellness-related products. 

Offering options for relaxation, stress reduction, and overall health enhancement, they're excellent for fostering a positive work environment.

Ensure the accessibility of the gift cards is easy. Look for a gift card system that is functional digitally—allowing virtual gift cards for employees!

Choosing a comprehensive gift card system like Enjovia allows employees to select gift cards from their preferred retailers. Significantly enhancing their employee award experience.

Best Practices for Implementing Gift Card Programs

Best gift cards for employees

Implementing a gift card program for your employees requires thoughtful planning and execution. Here are some best practices to ensure its success:

Choosing the Right Gift Card Provider

Selecting a reputable gift card system is crucial for the smooth operation of your program.

There are two types of gift card providers, one offers you gift cards of an existing network of providers, like amazon vouchers, others like Enjovia offers a comprehensive platform that allows you to generate your own vouchers or vouchers of your businesses local partners. 

Enjovia allows for customisation and personalisation of gift cards. This ensures your employees receive a reward that feels special and valued. Look for providers that offer a wide range of brands and can cater to a global workforce if necessary.

Setting a Budget

Your employee recognition budget should reflect the diversity of accomplishments within your team. Break up your budget into smaller, more frequent recognitions instead of a large sum for a once-a-year event.

Use strong dashboards and analytics tools to review your recognition spend regularly. Be sure to maximise your budget throughout the year.

Personalising the Gifts

Understanding your employees' preferences is crucial in selecting the right gift cards. 

Personalisation goes a long way in making each reward feel unique and meaningful. Use platforms that allow customisation with personal messages or various options to match the recipient's tastes. 

This level of personalisation enhances the reward's value and strengthens the connection between your employees and the company.

Enjovia has a personalisation feature called ‘Add-ons’, which allows for customisation. With an extra choice of items or services added to your gift card. 

For example, champagne on arrival or chocolate-dipped strawberries. You can read more about add-ons here. 

Success Stories of Gift Card Programs

Gift card programs have been transformative in numerous organisations, enhancing employee engagement, loyalty, recognition, and retention. Let's explore some success stories highlighting the impact of these programs.

Improved Employee Retention

A pivotal aspect of gift card programs is their ability to improve retention rates significantly. Organisations have observed a reduced turnover cost and a higher retention rate by rewarding employees for their accomplishments. This shows the company's commitment to its employees and encourages them to stay longer.

Enhanced Job Satisfaction

Gift cards contribute to a positive work environment where employees feel appreciated and recognised for their efforts. This recognition boosts their job satisfaction, engagement, and motivation. 

You could provide gift cards to employees each December as a token of appreciation for a successful year.  Providing holiday gift cards for employees makes them feel recognised and appreciated, significantly enhancing job satisfaction.

Boosted Productivity

Employee gift card programs have shown to drive performance and productivity.

When we recognise and reward employees for their achievements, it motivates them to continue delivering exceptional results. 

Using employee gift cards as incentives can fuel friendly rivalries and motivate employees to excel. This approach has improved individual and team performance, benefiting the organisation's overall success.

Enjovia's gift card system can streamline managing programs, making personalising and distributing rewards easier. 

Gift card programs offer a memorable experience shared with loved ones. They have also proven to be a valuable investment for organisations looking to enhance employee well-being.


When considering gift card programs for employee recognition, it's important to choose the right system to maximise the benefits. 

Incorporating a tool like Enjovia simplifies the distribution and customisation process and significantly impacts recognition programs' overall success. 

This choice ensures appreciation goes beyond a transaction and creates a lasting sense of employee value and belonging.

Organisations should use a reliable gift card system for a seamless and impactful recognition process. 

Unique gift cards for employees are simple and easy with Enjovia. Contact Enjovia to set up a free store in minutes. - Marking the beginning of a transformed employee recognition journey that is meaningful and memorable.


Why Are Gift Cards Beneficial for Employees?

Q: What makes gift cards an effective reward for employees?

A: Gift cards are highly effective in incentive and recognition programs. This is because they offer tangible rewards for specific achievements or performance. This motivates employees to excel by giving them a clear goal and a desirable reward.

Q: Are gift cards for employees taxable? 

A: Yes, gift cards are considered equivalent to cash and, therefore, must be reported as taxable income. To ensure tax exemption for employee benefits, the provided benefits must meet specific criteria: 

  • cost not exceeding £50 per employee
  • non-cash form
  • not part of a contractual arrangement
  • not given for specific services
  • limited exemption for 'close' companies.

See more here for gift card taxation UK.

Q: Why might employers prefer giving gift cards over cash?

A: Employers may choose gift cards over cash as they provide more than monetary value. Gift cards can offer an experience or memory. Making them a powerful tool for building relationships and engaging with employees meaningfully.

Q: What are the advantages of using gift cards?

A: Gift cards are advantageous because they can be an alternative payment method to cash or credit cards. That’s why they’re often used for holidays or special occasions. They also help control spending, which can help manage finances and avoid overdrafts.

People Also Ask

Can you give gift cards to employees?

Yes, you can give gift cards to employees as a thoughtful gesture or recognition of their hard work. Just make sure to comply with any company policies or tax regulations regarding gift-giving to employees. 

For federal gift card law, read here:

Can you give employees gift cards in the UK?

Yes, you can give employees gift cards in the UK. However, it's essential to familiarise yourself with the specific tax and employment laws regarding gifts and benefits in the UK to ensure compliance. Check out UK gift card law here: 

How much should a gift card be for an employee?

The amount for a gift card for an employee can vary depending on the occasion and the company's budget. 

Considering the significance of the event or achievement being recognised is essential. 

A more substantial gift card amount may be appropriate for milestone achievements or major holidays. 

In contrast, a modest amount can convey the sentiment effectively for more minor gestures of appreciation. Ultimately, the gift card's value should reflect the appreciation and recognition you want to express for the employee.

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