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When it comes to employee appreciation, finding the perfect reward can be a delicate balance between showing gratitude and ensuring that the gesture is memorable. While cash bonuses are undoubtedly appreciated, there are compelling reasons why gift cards can be a superior choice. This article delves into why rewarding your employees with gift cards is better than cash.

Gift Cards are Remembered and Perceived as Gifts

Although a versatile and universally appreciated form of recognition, cash bonuses may not leave a lasting impression. Employees often view cash as an extension of their regular compensation, making it easily forgettable. On the other hand, when employees receive gift cards, they are more likely to treat themselves to something special, creating a lasting memory associated with the recognition. In contrast, cash may end up in savings or be used to pay bills, blending into daily expenses rather than standing out as a memorable token of appreciation.

CRA's Change in Designation and Its Implications

A recent shift in the designation of closed-loop gift cards by the Canada Revenue Agency (CRA) from near-cash to non-cash introduces new possibilities for employers. This change may have implications for how companies structure their employee rewards programs. To leverage this shift effectively, it is crucial to consult with your accounting team to understand how the updated rules apply to the company's situation and internal policies. The CRA's gifts, awards, and long-service awards page can be valuable for gaining insights into these changes.

Personalized and Thoughtful Gestures

Gift cards can be selected to cater to each employee's unique preferences and interests, making the reward more personalized and thoughtful. This level of consideration goes beyond the one-size-fits-all nature of cash bonuses. By selecting gift cards tailored to each employee's interests, employers demonstrate a deeper level of appreciation, reinforcing the idea that recognition is not just a routine process but a genuinely heartfelt gesture.

Encouraging Healthy Behaviours and Work-Life Balance

Unlike cash, which can be spent on anything, gift cards can encourage healthy behaviours and work-life balance. Providing employees with gift cards for outdoor activities, relaxation, or healthy dining establishments can inspire positive lifestyle choices. This proactive approach ensures that the reward contributes to the employee's overall well-being, aligning with the company's commitment to fostering a healthy and balanced workplace. In contrast, the flexibility of cash bonuses might lead employees to indulge in less healthy habits. Gift cards, when chosen thoughtfully, have the potential to kickstart healthy habits that, in turn, enhance an employee's work-life balance and productivity.

Perfect for Employee Recognition Programs

Gift cards seamlessly fit into employee recognition programs, providing a tangible form of appreciation. Whether a monthly recognition program or an annual awards ceremony, gift cards can be tailored to suit the occasion and the celebrated achievements. Their versatility makes them perfect for recognizing milestones, outstanding performance, or long-term dedication to the company. Employers can use the advantages of gift cards within recognition programs to motivate employees and create a positive and inclusive work culture. Linking gift card rewards to specific achievements helps reinforce the connection between recognition and the exemplary efforts of the workforce.

While cash bonuses have their merits, the benefits of rewarding employees with gift cards are multifaceted. From leaving a lasting impression to encouraging healthy behaviours, gift cards offer a personalized and thoughtful approach to employee recognition. Gift Card Warehouse’s flexible fulfillment platform and diverse array of participating retailers make it easy to reward and incent a productive workforce.