How To Choose The Best Gift Voucher For Your Employees
There is something incredible about rewarding employees for their hard work. Whether it's a big win or year-end gifts, thoughtful employee recognition helps more than just retain employees; it helps people show up with confidence and raises the bar.
A recent survey by Workhuman found that when recognition is combined with feedback and incentives, employee performance increases by as much as 32%. While there are many ways to say 'thank you', there is one method that's low-cost, tax-free, and does not inflate payroll, and that's gift vouchers.
The real challenge comes when deciding on the ideal gift voucher for your employees. Most employers find it difficult to choose the right reward that is easy to manage and is personalized for each employee. In this article, let's discuss the best corporate gift voucher for employees.
The Best Gift Voucher For Employees
When searching for a gift voucher for employees, businesses are often looking for the perfect balance between something that feels personal and does not add unnecessary admin overhead.
Here are some features that an ideal employee gift voucher should have:
1. Flexibility: The gift voucher should be flexible enough to be used online and in-store, anywhere around the world.
2.Personalisation: Employees value rewards that feel personalised. A voucher that is only meant to be used at a fixed store might not be useful to every employee.
3. Scalability: Whether it's a team of 50 or 100, the voucher should be easy to procure and distribute.
CleverCards employee gift card was built to include all the above features and more. It is a prepaid digital mastercard that can be easily sent to employees' inboxes. Simply sign in to CleverCards, load the card with your preferred amount, and instantly deliver it with a custom message to your employees.
This means no administration work, no physical distribution of gift cards. Employees can instantly activate their digital Mastercards and add them to Google Pay and Apple Pay. From a coffee to a weekend getaway, these cards can be used anywhere, offering a rewarding experience.
Tax-free Gift Vouchers: What Employers In Ireland Need To Know
The benefit of a digital gift card does not stop at the convenience it offers; it also extends to significant tax benefits for employers in Ireland.
Under the Small Benefit Exemption Scheme in Ireland, employers can provide each employee with a non-cash benefit of up to €1,500 per annum completely tax-free.
CleverCards Employee Benefit Mastercard helps in taking the tax burden off employers by offering a tax-free gift card for employees that is not only flexible for them but is also effortless for the company.
Corporate Vouchers vs. Cash Bonuses
Considering cash bonuses are a more familiar choice, one may find themselves weighing the benefits of corporate gift vouchers for employees and cash bonuses. In today's digital world, cash bonuses are not only outdated but have also proven to be a financial burden on businesses.
Since cash bonuses are required to be rolled out in payroll, they are subject to Income Tax, which significantly reduces the gift value for employees. Moreover, when bonuses are bundled with a monthly salary, they often go unnoticed.
Which means there is no distinct moment of recognition that employees get. It becomes just another number on a payslip. Research shows that 65% of employees prefer non-cash incentives because they find them more encouraging than cash rewards.
Further, for employers in Ireland, the small benefit exemption scheme is only applicable to 'non-cash benefits' while cash bonuses are subject to income tax like USC and PRSI. Hence, a €1,500 gift card can be given out without any additional tax burden, while a €1,500 bonus may cost the employer a lot more due to added taxes.
How Digital Gift Vouchers Are Boosting Employee Happiness?
Digital gift vouchers are quietly changing how both employers and employees perceive recognition. It offers freedom of choice that no other gift voucher can match.
Some employees like being rewarded with their favorite cup of coffee, while some may want to spend it on something they have been saving up for. Digital employee gift cards ensure they use their reward in a way that feels truly rewarding to them.
How Companies In Ireland Are Using Tax-free Gift Vouchers?
Employers in Ireland are now moving to CleverCards digital Mastercards, and for good reason. They offer a meaningful form of recognition while also being fully tax-free up to €1,500 per employee per annum.
Because CleverCards are 100% digital, they can be availed online and distributed instantly without any admin load. Moreover, since they are powered by Mastercard, they can be used anywhere Mastercard is accepted.
Companies are using CleverCards to:
- Reward exceptional performance
- Celebrate team milestones
- Send Christmas or year-end gifting
- Recognise new joiners
Not only companies in Ireland, Fortune 500 companies across the world, like Apple, Microsoft, Amazon, etc, are also using CleverCards to boost employee engagement and happiness.
Want a personal demo of how CleverCards can work for your team? Fill out the form below to get started.