Gift Cards for Employees: Why They’re Great As an employee, there are many occasions when it is appropriate and important to give your employees a gift. This could be a thank-you gift, a spot reward, a holiday well-wishness present… the opportunities to thank and appreciate your employees are truly endless. But the million dollar question is: what do I give my employees as a gift? A gift card isn’t just a great gift… it’s a fantastic one, particularly for your employees. Here’s why: Flexibility: Unlike a specific gift like a box of chocolates or a bottle of wine, gift cards offer your employees ultimate flexibility. They have the power to spend their gift card on whatever they want or need, whether that’s supplies for the office, a delightful experience or a special little treat. Rather than buying a generic gift you think everyone will like, play it safe and smart with a gift card they can freely spend on whatever they like. Convenience: Gift cards are shockingly easy to order, whether you need 5 or 500. There are plenty of gift card providers online that make it easy to order both digital and physical gift cards in minutes… all from the comfort of your desk! And if you need to order in bulk, many gift card providers have corporate sales teams that can help you with all of the logistics, so the whole process is a breeze. Boost Morale: When you reward or thank your employees with a gift they actually want, you’re making a seriously positive impact on them. According to Xceleration, research shows that 78% of employees report increased job satisfaction after receiving meaningful gifts from employers. Note the word ‘meaningful’ here: your employees don’t want more useless office supplies or branded plastic! They would appreciate something thoughtful, useful and to their taste… which is why a gift card is the perfect thing. Can Employers Give Gift Cards to Employees? So, can you buy gift cards for your employees? Absolutely! However, there are a few things to consider before you do so: Policy Alignment In some companies, particularly larger ones, there may be internal policies in place that prohibit employees from accepting gifts or benefits (as it may compromise the integrity of decision-making.) This means that employees may not be able to accept a gift card, or any gift, under company policy. To ensure compliance, always consult with your HR team. Fairness and Transparency While rewarding employees with gift cards due to outstanding performance is absolutely encouraged, it is important to remember that for occasions like holiday or EOFY gifting, gifts should always be distributed equally amongst employees to maintain a fair and positive workplace environment. Are Employee Gift Cards Exempt from FBT? In some cases, gift cards given to employees may be exempt from Fringe Benefits Tax (FBT) under the minor benefits exemption in the Fringe Benefits Tax Assessment Act 1986 (FBTAA). This is a really great reason why gift cards are a brilliant option for corporate gifting. If you give an employee a $250 cash bonus at EOFY, that would not be exempt from FBT and you would need to pay tax on it. But a $250 eftpos gift card? Generally, that would be exempt from FBT, meaning you could save quite a bit of money on your corporate gifting programs (at least 10-12% according to Group Together). It’s important to note: a gift card may only qualify as a minor benefit if: The gift card is valued at less than $300, and It is given to an employee on an infrequent and occasional basis only. For example: if you give an employee a $250 gift card at Christmas, and a $200 gift card at EOFY, both gifts may qualify as minor benefits, and be exempt from FBT (meaning you won’t need to pay tax on them). However, if the gift card is valued at $300 or over, the minor benefits exemption will generally not apply. The gift card will become subject to FBT and you will most likely need to pay tax on it. The best ways to stay compliant: Keep detailed records of exactly who, what and when you are gifting Ensure you are giving gift cards valued at $299 and under Gift no more than 2-3 times per year Fringe Benefit Tax rules can be a little complex and tricky to understand, so if you are unsure, seek advice from a tax professional or refer to the Australian Taxation Office (ATO) guidelines to ensure you are following correct protocols. When Should You Give Employees Gift Cards? There are plenty of occasions where you could give your employees a gift card, including: Appreciation/recognition moments: If an employee has completed a project with flying colours, or is mentoring the new hire out of goodwill, or perhaps is just going above and beyond in the office every day… reward them with a gift card. This positive reinforcement will encourage them to keep up the fantastic work. Milestone moments: A gift card is a great gift option for an employee milestones such as work anniversaries and birthdays. Make them feel special and valued for the human that they are with a flexible gift they can spend how they like. EOFY: The End of Financial Year is a great opportunity to thank your employees for all of their hard work throughout the business year. Give them a gift card on June 30th to say ‘thank you’ for their contributions to the business’s success. Christmas/holiday season: Wish your employees a happy holiday season with a gift card they can enjoy and spend how they like. Not only do they likely deserve it, but you will leave a lasting positive impression on them as they enjoy the holidays with their families. They’ll return to the office on January 2nd with gratitude and optimism. Types of Gift Cards for Employees So now we can agree that gift cards are an excellent option for employee gifting. But what type of gift card should you give your employees? There are all sorts of gift card types, and some are more suitable than others depending on the occasion or team. Let’s explore the options: Prepaid Gift Cards: Prepaid gift cards (also known as ‘open-loop’ gift cards) offer recipients maximum spending freedom, and are a great alternative to gifting cash. They’re preloaded with a certain amount of money, allowing recipients to make purchases without being linked to a bank account, and are accepted at millions of retailers in-store and/or online. They’re a fantastic option for employee gifting as they offer employees total flexibility, with the option to spend their reward on just about anything. There are three types of prepaid gift cards: Eftpos Gift Cards are gift cards that are accepted in-store across Australia, wherever eftpos is accepted. This includes supermarkets, retailers, venues, experiences… you name it! It’s important to note that they are not accepted online or overseas. Most eftpos gift cards are physical; ideal for in-person teams. They're perfect for occasions when employers are looking for premium, tangible gifts. [blogCards productHandlers="eftpos-designed-gift-card, eftpos-just-for-you, reward-designed-eftpos" /] [blogButton buttonLabel="Browse eftpos Cards" buttonTo="/landing/eftpos-gift-card" /] Mastercard Gift Cards are gift cards that are accepted in-store and online across Australia, wherever Mastercard is accepted. Spendable pretty much anywhere in Australia, they’re versatile and flexible, allowing the recipient maximum spending power. Mastercard gift cards come in both physical and digital formats, ideal for hybrid or remote teams. Digital Mastercard gift cards are perfect for occasions when employers need a gift fast, or if they need to send a gift to someone far away, as they land straight in their inbox with no shipping delays. [blogCards productHandlers="gift-for-you-mastercard, gift-mastercard, green-gift-card" /] [blogButton buttonLabel="Browse Mastercard Cards" buttonTo="/landing/mastercard-gift-card-collection" /] Visa Gift Cards are gift cards that are accepted in-store and online across Australia, wherever Visa is accepted. Like eftpos and Mastercard, Visa gift cards can be spent at thousands of retailers, supermarkets, and venues across Australia. Just like eftpos and Mastercard gift cards, they’re a great flexible gift for any employee-gifting occasion. [blogCards productHandlers="office-designed-visa, gold-visa-gift-card, for-youvisa-gift-card" /] [blogButton buttonLabel="Browse Visa Gift Cards" buttonTo="/landing/visa-gift-cards" /] Dining Gift Cards for Employees Dining gift cards are gift cards that can be spent at restaurants, cafés, pubs, bars and other eateries. They’re a fantastic gift for when you’d like to treat your employees to a delicious culinary experience. And the best part? They’re guaranteed to be appreciated, because let’s face it… everyone loves food! Looking for Dining Gift Cards for your employees? We’d recommend the below: The Restaurant Gift Card can be used in-person at thousands of restaurants across Australia, wherever eftpos is accepted. So whether your employees are into spicy Thai, decadent French or a good old pub feed, they can enjoy a fabulous meal, on you! The Pub & Bar Gift Card can be used in-person at pubs and bars across Australia, wherever eftpos is accepted. This is a particularly great gift for EOFY thank-you gifts or spot rewards, so you can shout your employees a couple of rounds. The Good Food Gift Card gives your employees access to Australia’s top bars, restaurants and cafés across Australia (as part of Australia’s most trusted dining guide, the Good Food Guide.) It’s the perfect luxury dining gift for employees. [blogCards productHandlers="restaurant, pub-bar, good-food-gift-card" /] [blogButton buttonLabel="Browse Dining Gifts" buttonTo="/cards/serve-up-a-great-gift" /] Experience Gift Cards for Employees Experience gift cards are gift cards that offer recipients memories, not things. They can be spent on entertainment, travel, wellness and more. They’re a great gift for employees as they encourage a healthier work-life balance (which has a positive effect on business). Looking for Experience Gift Cards for employees? We’d recommend the below: The Cinema Gift Card can be used in-person at thousands of cinemas across Australia (any venue that accepts eftpos). The recipient can choose exactly what they’d like to see, from romance to horror films. They can even use it at the snack bar! The Pamper Gift Card can be used in-store at beauty salons and wellness centers around Australia (anywhere that accepts eftpos). It’s the perfect gift for any employee who needs a little R’N’R. The Holiday & Hotel Gift Card offers recipients access to over 800 000 hotels worldwide, so your employees can turn their OOO on and jet off in style. [blogCards productHandlers="cinema, pamper, holiday-and-hotel-gift-card" /] [blogButton buttonLabel="Browse Entertainment Gifts" buttonTo="/cards/let-me-entertain-you" /] Retail-Specific Gift Cards for Employees Retail-specific gift cards are gift cards that can only be used at a specific retailer. They can be a really great option for employee gifts, particularly if you’d like to give your employees something from a specific retailer, but still want to give them flexibility. Looking for Retailer-Specific Gift Cards for employees? We’d recommend the below: The Apple Gift Card is a generous and premium gift card option for employees. Recipients can spend it on everything from games, apps and music to tech and accessories. The Amazon Gift Card is a versatile and useful gift card option for employees. Recipients can spend it on millions of products, from fashion, homewares, toys, games and more. Coles or Woolworths Gift Cards are both highly practical gift cards for employees that are guaranteed to be appreciated. Recipients can use it to buy their weekly groceries, making it a genuinely useful gift. [blogCards productHandlers="apple, amazon, coles-gift-card, woolworths" /] [blogButton buttonLabel="Browse Major Retailers" buttonTo="/cards/big-brands-on-show" /] Swap Card: The Secret Weapon of Corporate Gifting Last (but certainly not least) the Card.Gift Swap Gift Card is a fantastic gift card option for employee gifting. Upon receiving their Card.Gift Swap Card, recipients can come back to the Card.Gift website and swap their card for any of the 150+ of Australia’s favourite brands, from fashion and food, tools and tech. To learn more about this fabulous little card, check out our blog: How the Card.Gift Swap Card Works. [blogCards productHandlers="carddotgift-designed-generic, carddotgift-custom, thanks-heaps-designed-card-gift" /] [blogButton buttonLabel="Browse Swap Cards" buttonTo="/landing/card-gift-credit" /] Tips For Gifting Gift Cards to Employees Now that you’ve chosen the type of gift card you’d like to give to your employees, the next thing to think about is how you give it. When giving a gift card to your employees, there are some important things to remember: Include a note: When you’re giving an employee a gift card, make sure to communicate to that employee why you are gifting them. Is it because of their consistent hard work throughout the year? Have they helped out on an important project? Or perhaps you would just like to wish them a very merry Christmas and a happy holiday season. Whatever the occasion, ensure that your employee knows why you are giving them their gift card. Timing is important: If you’d like to reward an employee for a specific occasion, make sure to give them their gift card straight away so they are immediately acknowledged for their hard work and know that you are appreciative. Personalise where possible: If you have a small team and know everyone's preferences, you might want to get brand specific cards for each person. Or if your business is highly focused on wellness (perhaps you are an active-wear company) you might want to get everyone a health or wellness-themed gift card. FAQs How much should I spend on a gift card for employees? Depending on the size of your business, you may want to spend anything from $50-$300 per employee, although there really is no right answer. If you’d like to ensure your gift card is FBT-free, make sure you spend no more than $300 per person, 2-3 times per year. When should I give my employees gift cards? There are plenty of occasions when you could give your employees a gift card, including: employee appreciation moments (like EOFY or after a big project) employee milestones (like birthdays and work anniversaries) and holidays (like Christmas or end-of-year moments). Is it appropriate to give gift cards to my employees? It is appropriate to give gift cards to your employees, as long as you are doing it in a fair and equal way. For occasions like holiday or EOFY gifting, gifts should always be distributed equally amongst employees to maintain a fair and positive workplace environment. Are digital or physical gift cards better to give to my employees? If your employees are in-office, you may want to give them a physical gift card such as an eftpos card. For employees that are either hybrid or remote, digital gift cards are a great option. You can send digital gift cards, like Mastercard or Visa gift cards, anywhere in Australia in just a few minutes. When it comes to corporate gifting, who else can I give gift cards to? Gift cards are a really fantastic gift, not just for employees, but for clients, partners and any other stakeholders! They’re professional, premium and flexible, making them an ideal corporate gift for any recipient.