Top 5 Reasons Companies Should Give Gift Cards to Employees
Discover the top 5 reasons to give employees gift cards and how Assembly’s new program makes recognition easy and impactful.
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Discover the top 5 reasons to give employees gift cards and how Assembly’s new program makes recognition easy and impactful.
In today’s fast-paced and competitive business landscape, employee recognition is no longer just a nice-to-have—it’s a strategic necessity. Companies that prioritize meaningful appreciation see higher engagement, improved morale, and better retention rates. Yet, finding the right way to reward your team can be challenging. Traditional gifts often miss the mark, and cash bonuses can get lost in everyday expenses.
That’s where gift cards come in: a modern, flexible, and highly effective way to show your employees you value their hard work.
Below, we explore the top five reasons why companies should give gift cards to employees—and how Assembly’s new gift card program can make your recognition efforts seamless and impactful.
One of the biggest challenges with employee rewards is finding something that appeals to everyone. Gift cards solve this problem by giving employees the freedom to choose what matters most to them. Whether it’s a favorite restaurant, a popular retailer, or an online marketplace, gift cards empower employees to select a reward that fits their unique preferences and lifestyle.
This flexibility is especially important in today’s diverse workplaces, where employees come from different backgrounds and have varying interests. Instead of a one-size-fits-all approach, gift cards offer a personalized experience that makes each employee feel seen and appreciated. According to the Incentive Research Foundation, employees rate gift cards as one of the most desirable forms of recognition, precisely because of the choice they provide.
Gift cards can also be tailored to fit various occasions and preferences. Whether it’s a birthday, work anniversary, or a celebration of a significant achievement, gift cards can be personalized to match the moment. This personal touch significantly enhances the impact of the recognition, making employees feel valued.
Recognition is a powerful motivator. When employees feel valued, they’re more likely to be engaged, productive, and committed to their work. Gift cards provide a tangible, memorable way to acknowledge achievements—whether it’s hitting a sales target, going above and beyond for a client, or celebrating a work anniversary.
Unlike generic corporate gifts, gift cards create a positive emotional response. Employees associate the reward with a specific accomplishment, which reinforces the behaviors you want to see more of. This not only boosts morale but also encourages a culture of high performance. In fact, companies with strong recognition programs report a 31% lower voluntary turnover rate, according to research by Bersin & Associates.
Gift cards are also ideal for “spot rewards”—on-the-spot recognition for a job well done. Instead of waiting for an annual review, a manager can instantly send a digital gift card to an employee who went above and beyond. This timely acknowledgment is far more impactful, showing that the company is paying attention and values contributions in real time.
Administering an employee recognition program shouldn’t be a headache. Gift cards are incredibly easy to purchase, distribute, and track—especially with digital options. Whether your team is in the office, remote, or hybrid, you can send gift cards instantly via email or text, ensuring everyone feels included and appreciated.
For HR teams and managers, this simplicity is a game-changer. There’s no need to worry about shipping logistics, inventory management, or the risk of giving a gift that misses the mark. Digital gift cards can be automated, scheduled for special occasions, or sent on the spot for spontaneous recognition. Plus, tracking and reporting features make it easy to monitor your program’s effectiveness and stay within budget.
Every company wants to maximize the impact of its recognition budget. Gift cards offer predictable costs, with no hidden fees for shipping or storage. You can choose denominations that fit your budget, and even small amounts can make a big difference in how employees feel.
Many gift card providers offer bulk discounts, allowing you to stretch your budget further. And because gift cards are so well-received, you get more value for every dollar spent compared to traditional gifts that may go unused or unappreciated. This makes gift cards an ideal solution for companies of all sizes, from startups to large enterprises.
The predictable nature of gift card costs makes budget planning straightforward. Companies can establish clear recognition tiers—perhaps $25 for spot recognition, $50 for monthly achievements, and $100 for annual milestones—creating a structured approach that’s both fair and financially manageable.
Regular recognition is key to building a positive workplace culture. When employees know their efforts will be noticed and rewarded, they’re more likely to stay engaged and loyal to your company. Gift cards make it easy to celebrate milestones, achievements, and everyday wins, reinforcing a culture of appreciation.
This ongoing recognition has a direct impact on retention. Employees who feel valued are less likely to seek opportunities elsewhere, reducing turnover and the associated costs of hiring and training new staff. According to Gallup, organizations with high employee engagement experience 59% less turnover than those with low engagement.
Gift cards also support peer-to-peer recognition programs, where employees can nominate colleagues for rewards. This democratization of appreciation helps create a culture where recognition flows in all directions, not just from management downward.
Ready to elevate your employee recognition strategy? Assembly will soon launch a new gift card program designed to make rewarding your team seamless, delightful, and impactful. The program is free to sign up, and the first tier is included in all paid plans—making it accessible for companies of any size.
Self-Service Product:
Categories:
Choose from a variety of occasions—Thank You, Retirement, Birthday, Anniversary, Congratulations, Marriage, and more.
Gifting Ideas:
Receiving Experience:
Assembly’s new gift card program makes employee gifting seamless, memorable, and meaningful. Whether you want to recognize a single employee or celebrate a team milestone, Assembly has you covered.
Ready to transform your employee recognition program? Schedule a demo with Assembly today!
Gift cards offer flexibility, allowing employees to choose their own rewards, which increases satisfaction and motivation. They also provide tangible recognition that creates positive associations with workplace achievements.
Regular recognition with gift cards fosters a culture of appreciation, making employees feel valued and less likely to leave. Companies with strong recognition programs experience 31% lower voluntary turnover rates.
Yes, digital gift cards can be sent instantly via email or text, making them ideal for remote or hybrid teams. They eliminate shipping costs and logistical challenges while ensuring immediate recognition.
Gift cards are perfect for birthdays, work anniversaries, retirements, thank yous, project completions, achieving goals, promotions, and celebrating achievements or milestones throughout the year.
Get the foundational knowledge on creating an employee recognition program that boosts employee engagement and helps them feel valued.
Explore GuideYes, at Assembly, security is a top priority. Each quarter, we have ongoing security work that is everyone’s responsibility. While we maintain a strong security posture, it was important for us to prove to our customers that we do everything we claim to do. This led us to pursue a SOC 2 Type II report that would provide evidence of our compliance with industry gold-standard security practice.
There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.
Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.
The minimum agreement term is a 12-month subscription.
We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.
At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.
The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.
We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.
For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.
If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.
If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at support@joinassembly.com.
Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!
While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.
Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.
Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.
That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.
They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.
No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.
Please schedule time with an expert and we will help you to get all your questions answered