Why reward employees with vouchers?
Rewarding your employees with vouchers demonstrates to them that you appreciate their work and acknowledge their efforts. In the section below, we look at the a few reasons why you should have a voucher programme for your employees. We also explore the benefits of vouchers and the types of vouchers available out there.
Why give vouchers to employees?
Vouchers are tokens of appreciation. They are an effective way to demonstrate gratitude and to reward the work of your team members. Vouchers should be given for specific reasons. Of course, a voucher will have an impact on the financial wellbeing of the employee receiving it; but the value of vouchers goes way beyond that. It will impact employee morale, make employees feel valued and have an impact on their overall job satisfaction and motivation to fulfil their role. As opposed to cash bonuses, vouchers are often easier to get approved, so they provide leaders with more flexibility to reward their teams. They are a great way to highlight the achievement of milestones and acknowledge a job well done. Vouchers can be made special by customising them. For example, you could choose a gift card from the favourite brand of the employee being rewarded.
Further benefits of corporate vouchers for employees
Giving vouchers to employees brings many benefits that are not always immediately obvious. Here are some of the reasons why your business should give away vouchers and promote desirable employee behaviours:
Increased engagement
When rewarded for their efforts, employees feel their work is meaningful and grow closer to the organisation they work for. They are valued and their efforts are not taken for granted.
Boosted job satisfaction
Giving a voucher is like making an encouraging gesture or a show of gratitude. It has an impact on how people connect to each other and brings a sense of fulfilment.
Enhanced loyalty to the organisation
If employees are satisfied within their jobs and value the organisation they work for, their loyalty will increase, and they will be less likely to seek other job opportunities. As such, vouchers have an impact on the company’s retention rate.
What are the types of reward vouchers available?
There are many different types of vouchers that businesses can gift their employees. Here are some examples that we hope will inspire you. Remember, you should consider the needs and situation of your employees when selecting the type of voucher you wish to offer.
Educational vouchers
Education vouchers contribute to employee growth. If you know that your team member is interested in a specific topic for growth, you could give them a voucher for an e-book, a newspaper subscription, language course or anything of their interest.
Health and wellbeing vouchers
Health and wellbeing vouchers aim at contributing to the wellness of your staff. Giving your team member a voucher with access to yoga lessons or a subscription to a gym encourages them to take care of their health.
Food and drink vouchers
With the cost-of-living crisis, food and drinks vouchers might be the go-to voucher type. Offering your team member a meal out, drinks in a cocktail bar or a gift card for their favourite coffee shop is never a bad idea. This is especially the case if the employee in question is a foody.
Entertainment vouchers
Entertainment vouchers send a good message to employees. They remind them to have fun. We tend to get entangled in our routines, and some of us struggle with work-life balance. Think about an entertainment voucher based on your employee’s lifestyle or interests. For example, you could get them tickets for them and their family to a theme park or the cinema.
FAQ on vouchers for employees in the UK
We have now seen the benefits of vouchers for employees and the types of vouchers available out there. Now that you are convinced that vouchers are a good way to reward your employees, let’s look at some essential considerations by addressing some frequently asked questions on voucher taxation and best practices.
How can an employer give tax-free vouchers to employees in the UK?
In the UK, it is possible to give employees vouchers without having to worry about the tax bill. This can be done through a gift voucher. To not trigger any tax, the gift voucher will need to be of a value of £50 or below. Another way to ensure the reward is tax-free is to give away trivial benefits. These are benefits that cost less than £50 per employee and are not part of contractual obligations. For example, a Christmas party or a ticket to a sporting event may be classed as trivial benefits.
What are the employer reporting obligations when it comes to employee vouchers?
For gift vouchers that are subject to tax, the employer needs to report them on the annual return P11D form. Any income tax and national insurance contribution will need to be deducted. If the business does not comply with these reporting obligations, it might be subject to penalties from HMRC.
What are best practices for businesses when it comes to employee vouchers?
Vouchers for employees are a good way to recognise them. However, due to potential tax implications, it is essential that companies provide their leaders with guidance when it comes to employees’ vouchers. Developing a policy on vouchers or even a strategy on when and how to use them will ensure that the organisation remains tax-compliant and will provide the necessary guidance to leaders.
Remember, when it comes to vouchers for employees, the idea is to demonstrate appreciation to the employee in question, or to a group of employees. As such, it is important that the voucher is personalised. Appreciation constitutes a big part of job satisfaction. It keeps your employees motivated, attracts new talent and fosters a work environment that places people first. Don’t be shy about rewarding your employees for going above and beyond. For more on employee satisfaction and employee engagement, have a look at the content below:
