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15 Best Employee Gift Cards For 2024 + Employee Gift Card Programs

By August 15, 2024 September 12th, 2024

👉 Article Overview: Employee gift cards are the backbone of any corporate gifting program due to their versatility, usability, and positive ratings from most employees. The team at SnackNation dives into the different ways you can send gift cards to employees for any occasion.

Two-thirds of ALL consumers have purchased at least one gift card. What does that tell us?

Gift cards are the safe bet when you aren’t sure exactly what to get someone. They’re as practical as cash with a tad more personalization.

Most people also don’t feel confident about gift-giving. According to a 2023 report from Giftsenda,

Research shows that at least 68% of employees prefer choosing their own gift instead of having their employer do so for them. Share on X

This means that more and more of the workforce is filling up with gift-card-savvy people who like to purchase, give, and receive gift cards of all sizes.

Best Employee Gift Cards

Not to mention the uncertainty we mentioned is even greater in a corporate context, which is why employee gift cards are the ultimate gifting strategy for the workplace.

Fortunately, we’ve compiled a list of the best employee gift cards your team will want to use. Leave a comment below if you want to recommend a well-received gift card that we are missing!

🔎 Looking for something special?

Jump to the right corporate gift card platform for a closer look:

💳 Best for redeeming gift cards: Nectar

🏆 Best for sending employee rewards: Motivosity

💰 Best for bulk gift cards: Stadium

🤔 Best for letting employee pick their gift card: Goody

🥪 Best for lunch gift cards: Hoppier

Employee Gift Card Programs, Platforms, and Services

Employee gift card platforms are services that facilitate employee appreciation and recognition and make gift card-giving easier, more convenient, spontaneous, and often, merit-based.

  1   Nectar

“Redeem gift cards via one employee rewards platform”

NectarHR-Gift-Cards

Nectar is a reward and recognition for across-the-board peer-to-peer recognition. Every member can celebrate another’s success with Nectar!

Why we love this employee gift card program: This employee engagement solution will reinforce company culture like no other and it makes things like spot programs super simple.

👉 Explore gift cards with Nectar

Notable companies using Nectar:

  • SHRM
  • Heineken
  • Lasko
  • Teachable
  • PropLogix

Standout features:

  • Custom swag storefronts
  • Employee health and wellness programs
  • Integrations with Slack, MS Teams, and much more

How to get started: See what the buzz is all about here!

HR professional, Dakota Davisson recently shared their experience working with Nectar to distribute employee rewards:

 

  2   Motivosity

“Send digital gift cards with only a few clicks”

Motivosity-Gift-Cards

Motivosity strives to improve company culture with a platform that supports each level of your organization.

You can not only easily search through their large catalog of employee gift cards, but can attach these gift cards to awards, employee shoutouts, personalized thank you messages, and e-cards. They even offer a #thanksmatter physical credit card that employees can use to redeem their recognition dollars on just about anything!

Why we love this employee gift card program: This gift card platform combines the ease of gift card distribution, with a host of features that encourage managers to listen to employees, peers to thank each other, and the entire organization to care more about their company culture.

👉 Explore gift cards on Motivosity

Notable companies using Motivosity:

  • Bosch
  • Great Clips
  • SalesRabbit
  • University Of Michigan
  • Adobe Workfront

Standout features:

  • #thanksmatter physical credit card
  • Personality profiles for new and existing staff
  • Customizable rewards

How to get started: Explore the Motivosity catalog!

 

  3   Stadium

“Set up a corporate gift card program”

Stadium-Gift-Cards

Stadium operates a simple and easy-to-distribute gift card platform to help you send gift cards to anyone at your company.

With their large catalog of gift card types and vendors, they make it possible to find the right gift card for each person.

Why we love this employee gift card program: Stadium manages all of your employee email addresses, home addresses, and care preference data so you don’t have to play the guessing game. Just log in, see what they like, and send over your next employee reward in just a few clicks.

👉 Explore gift cards with Stadium

Notable companies using Stadium:

  • Google
  • Harvard University
  • PWC
  • Pinterest

Standout features:

  • Customize the gift cards from $5 up to $500 dollars
  • Charity donation gift cards let you and your employees support a good cause
  • Saves employee’s preferences so managers can find the best gift card

How to get started: Get started with Stadium!

Jessica D

Jessica D. shared their experience with Stadium via a review on G2:

“I absolutely love the convenience and variety offered by Stadium Shops/SnackMagic. I appreciate the ability to access a wide range of snacks, merchandise, and personalized gifts all in one place. The selection is truly impressive, catering to diverse tastes and preferences. What I enjoy most is the ease of the entire experience, from browsing the user-friendly websites to the fast delivery.”

 

  4   Bucketlist

“Automate employee gift cards with one solution”

Bucketlist

Bucketlist is an employee gift and rewards program that uses personalized recognition to match the individual needs of the employee. With Bucketlist, employees can earn points and redeem them to achieve life goals.

Why we love this employee gift card program: It focuses on the employee rather than offering the same gift for every person on the team. This employee gift card service makes it possible to research, claim, and give quality gifts, experiences, and rewards so that employees get to enjoy checking things off their bucket lists!

👉 Explore gift cards with Bucketlist

Notable companies using Bucketlist:

  • Chick-fil-A
  • Orlando Magic
  • Nexon
  • Majesco

Standout features:

  • Customizable rewards based on your company values
  • Huge range of gift cards
  • Easy onboarding so employees can use it instantly

How to get started: Check something off your Bucketlist to get started!

 

  5   Goody

“Shop a selection of gift cards to pick your own”

Gift-Cards-Goody

Say Goodbye to tacky corporate gifts that nobody really wants (or uses!) with Goody, the all-in-one platform for business gifting! Goody allows you to send gifts easily and effortlessly to employees, clients, and prospects in over 40 destinations globally. The best part is that you can send employees gifts they can swap for the ones of their choice. You don’t even need a shipping address!

Why we love this employee gift card program: We love that Goody has thoughtfully curated features and options that both the giver and the recipient will enjoy equally.

👉 Explore gift cards with Goody

Notable companies using Goody:

  • Facebook
  • Google
  • KPMG
  • Stripe
  • Dropbox

Standout features:

  • No recipient address is needed – recipients add the shipping address when they accept your gift.
  • Send international gifts and gift cards to over 140 countries.
  • Automate gifts for special occasions and official events, such as onboarding, work anniversaries, and birthdays.

How to get started: Get your first gift card from Goody!

Edward LandoCofounder of Goody, Edward Lando, shared the ease of corporate giving with Goody:

Goody can take you 10 seconds to send a gift. Pick a product, choose a card, choose someone from your address book (or enter their number) and boom! They have their gift! And you get to have the thrill of following when they open it and reading their thank you message to you.

 

  6   Guusto

“Set up your own employee rewards program”

Guusto-Gifts

Guusto is the culture-building engagement platform for boosting collaboration, autonomy, and management excellence.

Why we love this employee gift card program: We love the fact that Guusto helps managers understand their team’s dynamics, recognize wins, and appreciate their individual team members.

👉 Explore gift cards with Guusto

Notable companies using Guusto:

  • Marriot
  • Levi’s
  • Harry Rosen
  • Toronto Raptors
  • Fairmont Hotels

Standout features:

  • Weighted performance measures
  • Performance review management
  • eCards

How to get started: Give your team extra motivation with Guusto!

 

  7   Hoppier

“Instantly send virtual gift cards for any team lunch, party, or team event”

Hoppier Gift Cards

Hoppier is an employee engagement platform that makes sending international rewards a breeze. Their vendor catalog features international brands and local options in 60+ countries, allowing their customers to run global team events and reward programs that leave no one behind.

Why we love this employee gift card program: These incentives should be a part of any employee gift card program because they have options for everyone, wherever they are.

👉 Explore gift cards with Hoppier

Notable companies using Hoppier:

  • Amazon
  • Google
  • Facebook
  • LinkedIn
  • Shopify
  • Phillips

Standout features:

  • Multi-vendor gift cards
  • 100% refund of unclaimed rewards
  • Advanced customization options

How to get started: Hop on over to Hoppier to get started!

Customer Seth Weiner wrote a strong review of Hoppier as a tool to better manage digital rewards at their company:

Seth-Weiner

 

  8   Bonusly

“Create customized awards with digital gift cards attached”

Bonusly-Gift-Cards

Bonusly is an employee incentives, recognition, and survey platform that’s perfectly optimized for the results economy of the modern workplace. Companies will enjoy a more engaged, satisfied, and in-sync group of employees with Bonusly!

Why we love this employee gift card program: Everyone can express gratitude and appreciation, instead of only the CEO or managers having the ability to reward employees. Through Bonusly, team members can redeem points for awesome items!

👉 Explore gift cards with Bonusly

Notable companies using Bonusly:

  • Hulu
  • ZipRecruiter
  • Invision
  • Toast
  • SurveyMonkey

Standout features:

  • Seamless app integrations
  • Automated gift card ordering
  • Social feedback portal

How to get started: Get started with Bonusly today!

 

  9   Awardco

“Establish your own lifestyle spending account”

awardco

Awardco is a reward platform for larger-sized companies, enabling connectivity in an otherwise disconnected world.

Why we love this employee gift card program: With a high level of customization and branding, employees and managers can send recognition via messages along with points for hotels, tickets, company swag stores, group gift cards, and charitable donations.

👉 Explore gift cards with Awardco

Notable companies using Awardco:

  • Zillow
  • Chick-fil-A
  • Hertz
  • Utah Jazz

Standout features:

  • Custom rewards
  • Rewards catalog
  • Leaderboards

How to get started: Give your employees the largest award platform out there with Awardco!

 

  10   WorkTango

WorkTango

WorkTango is an employee engagement program designed to create a high-performance, high-happiness company culture.

Why we love this employee gift card program: Through feedback, conversations, and other ways of engaging, employees will be able to work together, celebrate together, and win together!

👉 Explore gift cards with WorkTango

Notable companies using WorkTango:

  • Allianz
  • Kaiser Permanente
  • Meredith
  • Kia
  • Hitachi

Standout features:

  • Social feedback portal
  • Employee segmentation
  • Corporate discounts

How to get started: Check out WorkTango to get started!

Boston-Beer-Company

Customer Lindsey Durkin wrote a glowing review of WorkTango as a solution to manage rewards and appreciation at the Boston Beer Company:

“WorkTango helps the Boston Beer Company create a continuous culture of recognition and appreciation, no matter if team members are remote, in an office, or on the brewery floor.”

Lindsey Durkin
Manager of Compensation

 

  11   Mo

Mo is a reward and recognition platform that allows managers to create custom awards to send to employees for all types of occasions and milestones. To sweeten the deal a little, you can upgrade your awards by attaching a digital gift card to send to one, two, or as many employees as you want.

Using the Mo platform, your recipients can choose from gift cards from the world’s most popular brands all in your team’s Reward Store. From Starbucks to Apple, to Amazon and Doordash — the gift cards will be flying and your employees will thank you.

Why we love this employee gift card program: Since it is built directly into the recognition platform, there is no fuss when it comes to finding a gift card and sending it out. Simply log on, choose the spending limit, and let your employee shop!

👉 Explore gift cards with Mo

Notable companies using Mo:

  • Aspen
  • OVO Energy
  • SHL
  • Punch Pubs

Standout features:

  • Create custom employee gift card programs easily
  • Design triggers for occasions and milestones so nothing slips through the cracks
  • A centralized dashboard for analytics, reports, budget allocation, reward types, and more!

How to get started: Read more about Mo to book a demo today.

 

  12   Empuls

Empuls-Gift-Cards

Empuls is an employee reward platform that helps HR professionals and leaders reward employees for good performance and for hitting personal and professional milestones. With this platform, managers can delight employees at every stage of their journey with the organization.

Why we love this employee gift card platform: Empuls has a rewards catalog that includes more than 21,000 gift card options across 20+ reward categories and 75+ countries. It allows you to surprise employees with the gift of choice and a hassle-free reward redemption experience.

With Empuls, you can disburse virtual gifts and rewards for every occasion, from employee onboarding to promotion, birthday, work anniversary, wedding, exit, and more.

👉 Explore gift cards with Empuls

Notable companies using Empuls:

  • Cleartrip
  • Luminous
  • Rakuten
  • Brenntag
  • Signzy

Standout features:

  • Peer-to-peer recognition & employee recognition gift cards
  • Automated employee rewards
  • Corporate perks and discounts
  • Engagement and lifecycle surveys

How to get started: Schedule a demo or get started with a 30-day free trial!

 

  13   Terryberry

Terryberry is focused on helping companies across the globe support their valuable employees via the power of employee rewards. Their service gives managers and team leaders the flexibility to create a customized employee incentive and awards program where gift cards and all sorts of rewards can be sent to employees.

By working with top brands, Terryberry operates a reward platform that offers a selection of merchandise for every lifestyle. This ensures that when it comes time to select that perfect employee gift, Terryberry can make it happen.

Why we love this employee gift card program: Terryberry makes it easy to work your rewards and incentives into your existing health and wellness program. This encourages employees to achieve their fitness goals, take care of their mental health, and find opportunities to relax and recharge.

👉 Explore gift cards with Terryberry

Notable companies using Terryberry:

  • Champs Sports
  • Little Caesars
  • Discount Tire

Standout features:

  • At no extra cost add your company logo, welcome messaging from senior management, custom backgrounds, and color schemes
  • Employees can choose exactly what they want from a growing curated list of luxury products, hampers, experiences, gift cards, and more
  • Incentivize healthy behaviors with reward gift cards for participating in fitness and wellness challenges designed by Terryberry or custom

How to get started: See why 40,000 organizations chose Terryberry

 

Best Employee Gift Cards (Most Requested)

1) Amazon

Amazon is the number one online retailer in the world. With products in every imaginable category, it won’t matter if an employee is into home improvement, gardening, or sports, Amazon has it covered.

Why this employee gift card works: Employees will love being able to use the Amazon gift card to find something tailor-made for their passions and hobbies. Plus, with Amazon Prime, the items they pick out will arrive in rapid time.

Where to get it: Amazon Gift Card

 

2) Uber

An Uber gift card is the transportation hack your employees need. This ride-sharing gift card saves them money on gas and the headache of commuting behind the wheel.

Why this employee gift card works: Whether employees want to Uber back from their office holiday party so they can enjoy the night to the fullest or they want to feel like they have their own chauffeur, Uber will do just the trick.

Where to get it: Uber Gift Card

 

3) Starbucks

Starbucks and the corporate mode are nearly synonymous. The international coffee shop is known especially for fueling Americans in the morning en route to their jobs.

Why this employee gift card works: Employees will love this coffee-related gift card because it gives them a chance to indulge in their favorite caffeinated beverage. Some like it grande, others like it venti, but they all like it Starbucks.

Where to get it: Starbucks

LinkedIn member, Jarrod Watts, posted their recent score from Starbucks after receiving a gift card for Employee Appreciation Day:

 

4) Nike

Nike is one of the premier athletic brands in the world. Equipped with the right gear, your employees will want to “just do it” Nike-style.

Why this employee gift card works: Comfort is the new work uniform — or it should be, at least. The modern workplace is demanding, so employees have to be mental athletes, juggling one task on top of another. Nike will keep them fit and ready for the job.

Where to get it: Nike Gift Card

 

5) Airbnb

Has your employee taken their vacation time yet? If not, getting them an AirBnB gift card is an excellent way to show some employee appreciation.

Why this employee gift card works: AirBnB allows your employees to choose a short or long-term stay in any location around the world — especially if they’re working remotely. For your digitally nomadic team members or contractors, this gift card option can help them access work-life balance heaven on earth. Additionally, it’s an incredible holiday gift

Where to get it: Airbnb Gift Card

 

6) DoorDash

DoorDash is the perfect gift card for your work-from-home crew to enjoy delicious meals dashed and delivered straight to their door.

Why this employee gift card works: Instead of worrying about cooking meals, your employees or coworkers can relax and let the food come to them. The best part is that in true gift card fashion, they can choose from pretty much any restaurant they’d like — as long as they offer a delivery option. Talk about a winning coworker gift!

Where to get it: DoorDash Gift Card

DoorDash gift cards can be perfect for many occasions at your company such as this example from Ren where a team raised over $500 for a team member on leave: :

 

7) Spotify

Now each employee can march to the beat of their drum — or rather, work to the beat of their own music. This gift card is especially good for your corporate creatives.

Why this employee gift card works: The music streaming platform, Spotify, is one of the best choices for helping your employees find new music to fall in love with. Life is about these simple pleasures and this is a sure way to boost employee satisfaction by adding a little flavor to their day.

Where to get it: Spotify Gift Card

 

8) Uber Eats

Uber-Eats

Drizly is your top-shelf online liquor store. As you know, your employees deserve to kick back, relax, and blow off some steam when they’re off the clock. With tons of options on their platform, this gifting service is a trusted addition to any corporate gift card program.

Why this employee gift card works: Perhaps your coworker or employee is a serious entertainer or maybe they just enjoy a well-made drink. Either way, Drizly will put them in a perfectly refreshing state of mind.

Where to get it: Uber Eats

 

9. Sephora

Sephora-Gift-Cards

Sephora offers an unrivaled selection of makeup, skincare and hair products, fragrances, and anything employees want to upgrade their beauty cabinets.

Why this employee gift card works: Employee gift cards can be tailored to employees so that managers do not have to exercise a one-size-fits-all all approach. An outdoorsy employee can enjoy a gift card from REI while your more beauty-conscious team members can head to their local Sephora or shop online to try out a new beauty product that they’ve been eyeing.

Where to get it: Sephora

Brittany Lamp, Director of Brand, Content, & Community received an employee gift card from Life360 and promptly grabbed a few items! 

 

Virtual Gift Cards For Employees

10) Best Buy

Best Buy is the go-to when it comes to electronic devices and work-related hardware. On the other hand, it’s also ideal for your employees who love gaming since you can send a nice corporate gift without breaking the bank.

Why this employee gift card works: Best Buy gift cards give them the option of selecting their favorite brands, games, and devices, and being totally plugged in and ready to go now and in the future!

Where to get it: Best Buy Gift Card

 

11) Barnes & Noble

Barnes & Noble is the number one in-person bookstore chain in the U.S. This mega bookstore is perfect for bookworms and avid learners.

Why this employee gift card works: For employees looking to continue their education or employees who just enjoy getting swept away like feathers by a breeze of words, a Barnes & Noble gift card is the sweet escape they need.

Where to get it: Barnes & Noble Gift Card

 

12) ClassPass

ClassPass

This employee gift card idea centers around a trio of hugely important aspects of an employee’s lifestyle. This app focuses on fitness, wellness, and beauty so that you can wake up each day feeling great. ClassPass gives employees access to thousands of gyms, fitness studios, salons, and spas so that they can perform at their best.

Why this employee gift card works: ClassPass is great for employees who live an active lifestyle but do not want to commit to monthly subscriptions to multiple fitness studios. With this wellness app, they can pick and choose what classes they want to sign up for each week.

Where to get it: ClassPass Gift Card

 

13) Delta

Delta Gift card

Hit the airport and take to the skies with a digital travel card that can be redeemed for any Delta flight. A great gift card for an employee looking to take a long weekend or someone who wants to visit family.

Why this employee gift card works: Delta offers a variety of seat options so your employees can select when they want to fly, how nice their seat is, and where their flight is bound. A gift that will be used 100% of the time.

Where to get it: Delta Gift Card

 

14) Coffee Shop Digital Gift Card

coffee-shop2

Send your employees a little caffeine with a digital gift card that can be redeemed wherever they like to grab a cup of joe.

Why this employee gift card works: Each recipient will have their own choice of redeeming their gift to their preferred coffee shop: Starbucks, Peet’s Coffee & Tea, or Tim Horton’s

Where to get it: Coffee Shop Digital Gift Card

Senior Branch Manager, Lorio Rios, put together coffee-inspired gift card bags to go along with lunch and donuts! 

 

15) Alo Moves

Alo Moves is an online platform for yoga and fitness enthusiasts! Immerse yourself in a world of classes and resources designed to support your healthy and active lifestyle.

With an extensive library of high-quality videos led by expert instructors, you can access yoga, meditation, strength training, and mobility workouts tailored to your experience level. Join our vibrant community of wellness seekers and enjoy personalized fitness plans, progress tracking, and the flexibility to practice anytime, anywhere.

Why this employee gift card works: Alo Moves offers classes and opportunities for employees of all skill levels to participate. Whether your employees are looking to challenge themselves or zen out, Alo has them covered.

Where to get it: Alo Moves Digital Gift Card

 

16) Apple

Apple-Gift-Card

Apple Gift Cards are an excellent option for employee gift card programs, offering unparalleled versatility and undeniable appeal.

With these cards, employees gain access to a vast ecosystem of Apple products, including the latest iPhones, iPads, MacBooks, and a wide range of apps from the expansive App Store. Additionally, these cards can be used for subscriptions to popular Apple services like Apple Music, Apple TV+, and iCloud storage.

Why this employee gift card works: The flexibility of Apple Gift Cards ensures that employees can choose gifts that align perfectly with their preferences, making them an exceptional choice for employee recognition and appreciation programs. Embrace the power of Apple Gift Cards and elevate your employee rewards to a whole new level of thoughtfulness and satisfaction.

Where to get it: Apple Digital Gift Card

 

17) Stubhub

Stubhub-eGift-Card

This online ticketing platform provides employees with the opportunity to redeem their gift cards for sports, concerts, and theatre tickets for upcoming events in their area.

Why this employee gift card works: For the right employee, an event-based gift card can make a much larger impact than a virtual shopping spree. Seeing a Broadway show or a favorite musical artist can leave lasting memories. Managers can also pair this gift card with a bottle of wine or dinner certificate to make their night even more special!

Where to get it: Stubhub Digital Gift Card


What is an Employee Gift Card?

An employee gift card is a gift card that has a certain amount of funds on it that can be used to purchase items from another company or brand.

With its corporate twist, you always want to make sure that the employee gift card is workplace-appropriate, HR-approved, and aligns with the interests of your team members.


When to Use Employee Gift Cards

1. Corporate party — Make any corporate party better with gift card giveaways by offering gift cards to the winners of your office party games!

2. Lunch — The way to an employee’s heart is through the stomach, which is why giving out gift cards to their favorite restaurants is a guaranteed W. Good news! That’s exactly what Terryberry and others listed above do! Treat your global team to lunch in just a few clicks.

3. Monthly stipend — The small expenses add up, so a monthly stipend given out via gift card can help alleviate some of that stress and allow your team to do their best work.

4. Just cause perk — It doesn’t necessarily have to be your employees’ work anniversaries or a major milestone. Sometimes, no reason is required to give back to your amazing employees. Just cause perks, similar to on-the-spot bonuses, can majorly boost office morale.

Benefits of creating an employee gift card program
Employee self-treating

🧘🏽‍♀️ Similarly to giving employees a stipend, establishing an employee gift card program offers them the ability to treat themselves to whatever they want.

Memorable 🌟 Employee gift card programs are memorable because of the flexibility of getting to pick and choose your rewards.
Tax savings

💰 Employee gift card programs can help companies save up taxes, depending on how much value is given away.

Transparency

⚖️ Cash bonuses and even spot bonuses can be difficult to discuss with coworkers and can lead to some uncomfortable conversations; however, a gift card program is a win-win for everybody.

Adaptable to any budget

🎁 An employee gift card program gives you the ability to adapt the amount to something your company can actually afford — whether that’s $50 per gift card or several hundred dollars.


Expert Tips for Sending Gift Cards to Employees

Tip #1: Personalization is Key

When it comes to sending gift cards to employees, personalization can make a world of difference. Instead of going for generic or one-size-fits-all options, take the time to understand your employees’ preferences.

Consider their interests, hobbies, and lifestyles to choose gift cards that truly resonate with them. Whether it’s an Apple Gift Card for the tech enthusiast, a spa day gift card for relaxation, or a gourmet dining gift card for the foodie, tailoring your choice shows that you genuinely value and appreciate their unique contributions.

Tip #2: Timing Matters

The timing of your gift card distribution can have a significant impact.

Special occasions like birthdays, work anniversaries, or holidays provide ideal moments to express your gratitude. Consider surprising employees with unexpected rewards after significant achievements or successful projects. Timely recognition enhances the value of the gift card and reinforces a culture of appreciation within your organization.

Tip #3: Communicate Sincerity

Pairing your gift card with a heartfelt message can amplify its impact. Express your genuine appreciation for their hard work and dedication.

A personalized note or even a brief conversation can go a long way in conveying your gratitude. Remember that the sincerity of your acknowledgment matters more than the monetary value of the gift card, creating a lasting impression on your employees.


Employee Gift Card Policy

Before you start implementing gift cards, make sure you have an Employee Gift Card Policy in place.

The policy provides rules and guidelines for giving and receiving gifts from employees. Gift cards are a great way to motivate employees and build positive employee/client relationships. However, you want to ensure integrity in their usage and that you’re abiding by governing regulations, particularly in relation to taxes.

Taxes & Wages

Gift cards are considered taxable income, regardless of the amount, and you want to report them on the employee’s wages via the W-2 form correctly to avoid an IRS notice and penalty.

You’ll find the relevant section under the “boxes for wages, tips and compensation, for Social Security wages, and for Medicare wages and tips. The total quantity of fringe benefits awarded to employees can be reported under “Other” on the same W-2 form.”

Exemptions from taxes may apply for the purchase of specific items of minimal value, but please consult with your tax professional for specific and accurate information.

Appropriate Amount to Give

While there is no fixed amount recommendation, employers typically spend $15 to $75 per gift card per employee for a particular occasion.

This range can be considered appropriate for both rewards and recognition-based events and milestones like birthdays and work anniversaries. Each use case is different, so managers should consider factors based on budget, policy, and the value of the occasion.

Employees who’ve delivered phenomenal sales, for example, can certainly be given higher-value bonuses in line with their performance.

Pro-tip: Avoid too many choices as that can be overwhelming both for you as a gifter and for the employee as a recipient.

Closed-loop vs. Open-loop

There are currently two types of gift cards you can deploy for your employee gift card program – closed-loop and open-loop gift cards:

  • Closed-loop: Closed-loop gift cards are valid only for a specific outlet or service. This option is perfect if you know that this is a preferred employee choice.
  • Open-loop: Open-loop cards are like prepaid credit cards and are valid for just about any product or service.

Pro-tip #2: Before you start implementing an employee gift card program, do the initial run-through with your employees about which ones they’d like to receive and when through feedback surveys. This helps ensure that your employees are vested and will genuinely love the gift cards they get.


People Also Ask These Questions About Gift Cards For Employees

Q: Why is it important to send your coworkers a digital gift card?

  • It is important to send your coworkers a digital gift card because you can do so without any sort of ethical issues you might deal with if you were giving cash away.

Q: What are the benefits of having an employee gift card program?

  • It should come as no surprise that there are numerous benefits to having an employee gift card program. Logistically, it helps managers and team leads save time and energy by housing all gift cards in one centralized location.No more trips after work to the market to grab a physical gift card. Additionally, a built-out program can ensure that milestones, employee achievements, and holidays are not skipped by making it very clear when, how, and why employees are awarded gift cards.

Q: Can you reward employees with gift cards?

  • Absolutely. Rewarding employees with gift cards is a tried and true method for showing appreciation since it gives your colleagues a chance to shop from one of their favorite brands. They are especially useful nowadays for employees who work remotely since digital gift cards offer the chance to be sent to them without any snail mail needed.

Q: What is an appropriate gift card amount for employees?

  • Many gift cards will allow you to load a set amount of dollars to send to your employees which varies from $5 to $500. However, $50 is the most popular total for employee gift cards since it can be spent on several items and services without being too expensive for the company.

Q: Why do companies give employees gift cards?

  • Companies of all sizes give employees gift cards because they are well-liked by most colleagues. Their flexibility, ease of use, and variety of options are primary reasons why companies choose to send gift cards as opposed to sending cash or corporate gifts.

Q: How do I select the right types of gift cards for my program that employees will use?

  • To select the right types of gift cards, many managers focus on the interests and hobbies of their employees. Tapping into someone’s likes and dislikes can help to determine which kinds of gift cards you should send. If one employee is very sporty, a gift card to a sporting goods or outdoor activity store might be a good call.Conversely, if your employees love to play video games, a gift card from Xbox, PlayStation, or Steam will make them happy. Connecting the gift card with your employee’s interests can make your reward even more impactful.

Q: What are some of the best digital employee gift cards?

  • Some of the best digital employee gift cards are given out via employee recognition platforms; however, generally speaking, the best gift cards give employees a variety of options to choose from.

Q: How do I choose a gift card for employees?

  • You choose a gift card for employees based on budget, company culture, employee interests, and the variety of things the gift card will help employees purchase.

Q: How much should I spend on an employee gift card?

  • You should spend whatever amount is appropriate for your employee gift card budget. There isn’t one right answer, but remember, that your employees are an investment, so definitely be willing to spend a good amount to reward them for their hard work.

Q: How do I know if my employee gift card was successful?

  • You will usually know if your employee gift card was successful based on the feedback you get. The other thing to consider is that most employees will simply appreciate the gesture.

Q: Are there any unique employee gift card ideas?

  • Yes! There are all sorts of gift card ideas for employees that can be sent directly to them regardless if they work in the office or remotely. When choosing the right gift card, it can be helpful to think about the interests of your employees and try to find a gift card that will make an impact on them.If your employee loves to rock climb, a gift card to a sporting goods store or outdoor shop could go a long way. If they love to travel, a gift card to stay at a hotel or pay for part of their flight will encourage them to plan a new trip!

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