Table of Contents
All over the world, workers crave appreciation that feels personal, immediate, and empowering. They want to be accepted, encouraged, and motivated to keep working well and hard. There is no better way to achieve that in this modern age than a gift card. They are modern rewards that speak everyone’s love language.
With the rise of remote work and digital tools, companies now use virtual and bulk gift cards to motivate teams without hassle.
Whether for performance, birthdays, or “just because” moments, gift cards hit the sweet spot between personal and practical. They’re not just rewards—they’re recognition done right. For employers, it’s cost-effective. For employees, it’s gratifying. No shipping, no guesswork, just smiles. Here’s why they’re the smartest reward in today’s workplace.
The Psychology Behind Employee Incentives
Offering monetary gifts is not the only way to motivate someone working for you. Sometimes, the best way to motivate someone is to be creative with your gift. This gift can give a sense of meaning. Otherwise, incentives can become timely, personal, and emotionally satisfying gifts.
Studies from Harvard Business Review show that personalized, substantial rewards perform better than abstract ones like cash because they incite a stronger emotional connection. Employers want to feel seen and heard more than they need compensation.
Do you know that gift cards give the feeling of tangibility and guilt-free Spending? This is because it was designed to be used as gifts. On the other hand, cash was intended as a transactional commodity to sort out diverse needs. When you give out money, the receiver immediately wants to use it to sort out a bill, but when you hand over a gift card to someone, it makes them feel like you are giving them a treat.
According to the Incentive Research Foundation (IRF), 65% of employees prefer non-cash rewards, especially gift cards, because they view them as “guilt-free money.” Rather than groceries or rent, gift cards buy joy—gadgets, getaways, or gourmet meals. This tangibility is what rejuvenates the experience of recipients.
A cash gift gives monetary worth, but receiving a gift card naturally satisfies emotions. Each of these elicits appreciation and symbolizes effort. Imagine giving your employee a gift card from a brand they love and idolize; it will multiply the worth of the gift regardless of the card’s value. A $50 gift card to a favorite restaurant will always feel better than a $70 bonus for paying the bill.
Why Are Gift Cards Beneficial for Employers?
1. Cost-Effective Appreciation at Scale (Bulk Gift Cards for Employees)
Trying to put a smile on employees’ faces doesn’t have to drain the budget. Do you know you can purchase gift cards in bulk using platforms like Prestmit and distribute them at discounted corporate rates? Trust me, this will even create a large-scale appreciation and be both affordable and scalable.
2. Simpler Tax Management and Reporting
Unlike merchandise rewards, gift cards streamline accounting. Platforms often integrate with HR systems, simplifying recordkeeping. In many countries, small-value cards under a certain threshold are taxed differently or considered de minimis fringe benefits—check your local tax laws.
3. Boost in Retention and Loyalty
Recognition breeds loyalty. SHRM reports that organizations with strong recognition programs have 31% lower voluntary turnover. Gift cards make recognition feel personal and frequent, which helps teams stay motivated and committed longer.
4. Positive Brand Perception from Employee Feedback
Happy employees talk—and post. A thoughtful gift card can lead to shoutouts on social media or platforms like Glassdoor, boosting employer brand perception. Recognition is a morale booster and a brand enhancer in one.
5. Easy Implementation with Virtual Delivery
Gift card delivery is usually express, so you don’t have to deal with shipping delays or inventory stress. Once the eGift card is purchased, it is sent immediately to the recipient’s email. For cards intended for gifts, you can buy them and send them to the person through text.
You can customize and automate your delivery based on triggers like work anniversaries or performance milestones using platforms like Sendoso or Tremendous.
Why Do Employees Appreciate Gift Cards?
1. Personal Freedom to Choose What They Want
Gift cards give employees decision-making power, enabling them to choose exactly what they want. Not every employee wants the same thing; some will pick a tech item from Amazon, some will select fashion accessories from Zara, or coffee from Starbucks. So, giving gift cards allows them to decide and feel happy about their decisions.
2. Unique Gift Card Options That Feel Thoughtful
Beyond Amazon, there are niche gift cards for experiences (Airbnb), health (ClassPass), or hobbies (Xbox, Etsy). Choosing a card that aligns with an employee’s interests shows that the company truly knows them.
3. Instant Gratification with Digital Redemption
Today’s employees live online. They provide a quick dopamine hit that reinforces positive behavior and creates a strong association between effort and reward.
4. No Pressure: No Size, No Preference Conflicts
Gift cards are universal. No guessing sizes or colors, no cultural faux pas. They bypass the awkwardness of physical gifts and eliminate the risk of giving something unwanted.
5. A Guilt-Free Way to Treat Themselves
Employees often spend their bonuses on bills. A gift card empowers the employees to indulge, whether in a sushi night, a new game, or a wellness spa. That individual can buy any experience they desire, feeling a great sense of joy and happiness without feeling guilty.
Top Gift Card Options for Employee Recognition
The top 10 most popular gift cards include:
- Amazon gift card – General shopping
- Starbucks gift card – Coffee and snacks
- Visa/Mastercard – Flexible spending
- Apple gift card – Apps, music, devices
- Google Play gift card – Android apps & entertainment
- Target gift card – Home & lifestyle
- Uber gift card – Transportation or food
- Walmart – Groceries & household
- Netflix gift card – Entertainment
- DoorDash – Food delivery
Unique Gift Cards for Employees That Stand Out
- Airbnb: For weekend getaways or staycations
- MasterClass: Online learning from celebrities
- REI: Outdoor and fitness gear
- SpaFinder: Massage, wellness, and relaxation
- Bookshop.org: Support local bookstores
Virtual Gift Cards for Remote or Hybrid Teams
- Gyft, eGifter, and TangoCard offer virtual marketplaces.
- Instant delivery with customized messages
- No shipping is needed, which is perfect for global teams.
- Real-time redemption and tracking
How to Create a Successful Gift Card
1. Definition of Clear Reward Criteria
Set guidelines: Who earns gift cards and why? Examples include work anniversaries, sales milestones, peer-nominated MVPs, or wellness challenges. Keep it transparent.
2. Choose Between Generic vs. Branded Gift Cards
Branded cards (like Amazon) provide direction, while generic cards (like Visa or Mastercard) offer full freedom. Know your team—some prefer choice, others like the nudge.
3. Set Value Tiers Based on Achievement
You can make each reward correspond to the employee’s output for that period. For example, a small $10 card can reward and appreciate those exceeding a day or a week’s target, while a $100 card can be used to celebrate major milestones like team effort or the “best staff of the year” reward. You can motivate them and build anticipation for next season’s rewards.
4. Use Tools for Bulk Distribution & Tracking
Distributing the gift across different departments might be difficult for companies with a large employee base. We recommend using platforms like Runa, Giftbit, and Sendoso to automate delivery, track redemptions, and manage budgets. These tools can smoothly integrate with Slack, Microsoft Teams, or your HR suite.
5. Measure Impact: Surveys, Productivity, Engagement Levels
Track satisfaction. Ask employees how they felt about the reward. Monitor productivity, morale, and team retention changes over time to prove ROI.
Frequently Asked Questions FAQs About Benefits of Gift Cards for Employees and Employers
Are Gift Cards Taxable for Employees?
In most countries, yes. Gift cards are usually considered taxable income. But, gift cards with lesser values that are only utilized occasionally can be treated as a small, non-taxable item (generally referred to as a de minimis benefit). You can confirm this with your local tax rules or speak with your accountant.
Which Gift Cards Work Best for Recognition?
It is safer to patronize gift cards from popular brands like Amazon, Starbucks, and Visa. These famous brand cards are versatile and can be appreciated by anyone, but if you want to go the extra mile to put a smile on your employee’s face, please find out more about their lifestyle and figure out which brands are their favorite.
Giving them a gift card that aligns with their lifestyle and preferences makes the gift tangible, less generic, and priceless.
What Are the Benefits of Gift Cards for Employers?
They are cheap, easy to manage, and scalable. They also give a sense of care and value, and serve as a great motivating factor in the workplace. Plus, they offer zero risks or logistics challenges for physical gifts.
Why Do Companies Use Gift Cards Instead of Cash?
Gift cards feel more rewarding and are worthwhile. They naturally eradicate the “bill payment” mentality and provide a tangible, emotional reward that cash can’t replicate.
Conclusion
These days, gift cards are not just perceived as holiday giveaways. They are powerful materials that individuals, corporations, and social and religious groups use to foster relationships, drive engagement, instill loyalty, and improve performance. Gift cards reward employees with freedom, fun, and gratitude. Plus, they’re budget-friendly, easy to handle, and serve as a motivating factor in a work environment.
Gift card appreciation can create a workplace culture that celebrates effort and encourages excellence. This is how big brands can retain and recognize their great talents.
Last updated on August 1, 2025
