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 a few reasons why organisations often consider a voucher programme for 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. A voucher may offer a financial benefit to the employee receiving it, but the value of vouchers goes way beyond that. It can influence employee morale, help 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.
Further benefits of corporate vouchers for employees
Giving vouchers to employees brings many benefits that are not always immediately obvious. Here are some reasons organisations often choose to offer 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. Some organisations view vouchers as one element within broader engagement or recognition efforts.
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 can be a well-received option for many employees.. 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. Many employees appreciate gestures that encourage relaxation or leisure time outside work. 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. If your organisation is considering vouchers, here are some general points companies often review by addressing some frequently asked questions on voucher taxation and best practices.
In what situations might vouchers fall outside taxable benefit treatment in the UK?
HMRC’s ‘trivial benefits’ rules describe circumstances where some small gifts may fall outside taxable benefit treatment. Because these rules have specific conditions, organisations usually check current HMRC guidance to understand whether any given voucher qualifies. Organisations typically rely on current official guidance for definitions, conditions, and thresholds that may apply, and align your approach with your organisation’s policy.
What are the employer reporting obligations when it comes to employee vouchers?
Depending on the type of voucher, tax treatment can vary under current HMRC rules. Organisations usually confirm any reporting requirements through their finance teams and official HMRC guidance.
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, many organisations choose to provide leaders with internal guidance when it comes to employees’ vouchers. Some organisations choose to document internal guidance to support consistency, depending on their needs and internal processes. A written policy can help reduce risk and provide practical 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. Recognising employees who go above and beyond can support engagement and morale. For more on employee satisfaction and employee engagement, have a look at the content below:
