How Corporate Gift Cards For Employee Rewards Boost Productivity And Retention
Corporate gift cards are emerging as a smart way to reward employees. This article explores how they boost productivity and employee retention.
Employees put in the hard work, yes, to receive a paycheck at the end of the month, but they also want to know they are making a real difference in the organisation. They want to know their work matters. When employers fail to recognise, employees leave.
A survey found that over 66% employees would quit their job if they felt unappreciated. In today's competitive environment, employees feel increased pressure and struggle with constant change, making recognition not just a formality but a crucial retention strategy.
This shift in mindset has pushed companies to rethink how they can reward and retain top talent. Companies are now building structured reward programs, and company gift cards have emerged as a frontrunner. Let's explore how corporate cards are becoming a powerful tool to boost employee engagement and drive retention.
Why Are Corporate Gift Cards For Employees Gaining Popularity?
Previously, cash bonuses were the standard for employee rewards. Over time, things changed. Company gift cards began to replace traditional incentives. Workplaces became remote, employees are more distributed and expectations more evolved. Today, employees want rewards that feel personal.
With a cash reward, there are two major concerns: one, they are added to the payroll, which means they are considered part of the income and are taxed heavily. Second, cash rewards are easily forgettable. It gets absorbed into rent and bills. The sense of being rewarded is gone.
This realisation contributed to the rise of a reward that feels more intentional. It makes the message clear. Since it is separated from the paycheck, it feels more exclusive and memorable. Moreover, gift cards are tax-free up to €1,500 for each employee per year.
How Do Gift Cards Boost Employee Engagement & Retention?
The job market now is more competitive than ever. Especially when replacing an employee costs an average of 33% of their annual salary, retention should be more than an HR initiative; it's a business strategy. This is where gift cards come in. It may seem simple on the surface, but they solve critical employee engagement challenges. Here's how:
Builds a stronger connection
Employees want to feel seen. When recognition is missing, they are 2x more likely to leave within a year. A well-timed gift card with a personalised message shows them their contributions matter. A small gesture, but it builds the desire and loyalty to do more.
Feels more personal than cash
65% of employees prefer non-cash incentives because they feel more intentional. It comes off more like a reward and less like a transaction. Gift cards feel thoughtful and can be spent on something meaningful: a good meal, a book, a break, or even a splurge.
Helps employees feel included
Employees are more likely to align with business goals when they feel included, and that sense of inclusion begins with appreciation. Organisations that actively recognise their employees see a 21% boost in productivity. Further, 45% of employees who receive recognition at least once a month report being highly engaged at work.
Freedom to choose their rewards
With a corporate gift card, employees have the freedom to choose how they want to be rewarded. When employees receive cash, it gets lost in their monthly expenses. A gift card feels more exclusive and lets employees choose their reward, whether it is a short trip or a spa day.
What Makes A Great Corporate Gift Card For Employees?
Not all corporate gift cards are the same. The best corporate gift card for employees should also deliver a great experience. Here's what the best gift cards have in common:
1. It should be digital
We have slowly transitioned to a remote workforce. A digital gift can be issued instantly, removing the hassle of physical delivery and ensuring remote employees are never left out.
2. Can be used anywhere
A gift card that is restricted to just one brand limits choice. The best gift card allows employees to spend across categories. Employees can choose how they wish to utilise their rewards.
3. Should be easy to track
Recognition should not mean more admin work. A great gift card solution should allow HR and finance teams to easily distribute rewards, track usage and manage budgets.
When Should You Reward Your Employees?
Recognising employees at the right time can have a powerful impact on retention and engagement. Here are some key opportunities for you to reward your team:
1. Celebrating new joiners
2. Project completions
3. Work anniversaries
4. Employee Birthdays
5. Christmas or Special Occasions
6. Quarter-end or Year-end
Companies Globally Are Choosing CleverCards For Employee Recognition
Leading organisations are turning to CleverCards for a clever and more personal approach to employee recognition. CleverCards are digital prepaid Mastercards that can be used to reward employees.
Employers can order and pre-load the card online and issue it instantly via email to all their employees in a single click. Employees can then add their CleverCard to Google Pay and Apple Pay to make payments in-store using contactless, or use online by entering the card details they can find in the CleverCards App. Here's all that CleverCards has to offer:
1. Instant Delivery: CleverCards' employee gift cards can be sent to a team of 10 or 1,000 employees instantly with a personalised note via email.
2. Spend Anywhere: CleverCards are powered by Mastercard and can be used to make payments anywhere, online or in-store using contactless at over 50 million merchants worldwide.
3. Easy Tracking: Employees can download the CleverCards app to check their available balance, transaction history, card details and plan their spending accordingly.
Ready to make recognition more powerful? Choose CleverCards. Fill out the form below to get started.