Gift Cards vs Gift Hampers: Which Is Better for Employees?

Quick reads

• Gift cards provide greater flexibility for employees, whereas corporate gift hampers give an added festive element to the gifting process.
• Digital gift cards ensure hassle-free delivery of gifts to a hybrid workforce and different office locations.
• Multi-brand gift cards give employees the opportunity to select rewards according to their choice and requirements.
• The HR team should take into account the employees' preferences, budgeting, and sustainability before choosing gifts for them.

When it comes to selecting festive gifts for employees, HR teams often find themselves confused between two choices, which are corporate gift cards and corporate gift hampers. Both gifts serve a purpose, but the experience they create can be quite different. 

Since employees have different tastes, dietary preferences, lifestyles and personal priorities, what feels thoughtful to one person may not be particularly useful to another. This makes the comparison between gift cards and corporate gift hampers worth considering. Let’s delve into this for a better understanding. 

What is the difference between gift cards and corporate gift hampers?

Corporate gifting is the planned act of giving physical or virtual gifts to employees to acknowledge performance or celebrate festivals and other personal events.

Choosing between vouchers and corporate gift hampers can be done by analysing how the choice corresponds with the varied tastes of your team members.

Why have gift cards become the new popular choice for employees?

As mentioned above, every employee has different preferences; that is why offering the same traditional corporate gift hampers may not create the same level of excitement organisations expect. At the same time, corporate gift cards offer great flexibility. 

According to Pluxee’s Landscape of Corporate Gifting in India: Insights and opportunities study, gift cards are preferred by 41% of companies in India, ranking as the second most popular gifting option after physical gifts.

Listed below are some more reasons that highlight why corporate gift cards are becoming a popular choice: 

They reach everyone on time

Delivery becomes complicated for hybrid teams since addresses are sometimes inconsistent, courier schedules can be missed, and festival dates are fixed. The card delivered digitally reaches everyone on the same day regardless of whether one sits in Pune or is in their hometown in Odisha.

They waste less

Gifts that are not suitable according to the preferences of the employees usually remain unused or even put away in cupboards. A gift card with multiple brand options provides a wider scope for choice. Employees can pick from different brands as per their requirements and preferences.

They simplify budgeting

Gift cards make it easy for organisations to gift employees because there is no uncertainty about product and packaging costs that may change over time. This means that HR will be able to allocate specific amounts for each employee, hence making budgeting easier.

How can HR teams choose the right employee gift?

The right decision-making process begins with understanding the employees rather than going through catalogues. This makes gift-giving a thoughtful exercise for HR managers and an easy task to execute. Let’s take a look at the steps: 

Step 1: Define the intention behind the gift

The intention behind the gift plays an essential role here. Is it a Diwali gift? Or a gift to mark a specific achievement, or is it to support an employee engagement initiative? Depending on the context, the corporate gift can be a small token for spot recognition or a larger festive gift for Diwali.

Step 2: Ask the employees if they have any preferences

Not everybody will like the same gift. Different people, different choices. This is why it is important to ask for the preferences of employees. Ask them what types of gifts they would prefer, such as vouchers, food gifts, products, or any other option. This can be easily done via circulating a survey form. 

Step 3: Set a budget

Calculate the total expenditure for the whole batch of employees and then divide it by the headcount to get the per-employee cost. For gift cards, this would be relatively simple; you just have to pick a value. However, hampers require you to consider the content, delivery and other expenses.

Step 4: Make sure the gift is appropriate for everyone

If you go with digital vouchers, make sure they are redeemable across platforms and locations. The same goes with physical gifts. If you plan to choose this option, see if they can be delivered to everyone’s desk, and make sure to consider the dietary requirements. 

HR checklist before finalising employee gifts

1. The gift is appropriate for the occasion and for the employees for whom it is intended.
2. The budget covers all costs associated with delivery and administration.
3. Employee preferences and any dietary needs are taken into account.
4. The voucher has clear terms and conditions for use.
5. The gift is appropriate for employees in different locations.
6. The gift distribution considers environmental impact and sustainability.

Wrapping up

Choosing between gift cards and physical corporate gift hampers does not have to be an all-or-nothing decision. Nowadays, workplaces often combine both. For instance, some organisations reserve tangible hampers for major collective celebrations and utilise flexible gift cards for personal achievements, performance spot awards, and peer appreciation. Basically, it all depends on the organisational needs. 

If your organisation would like an easy, adaptable option to reward its people, Pluxee Gift Cards are the ideal alternative to conventional gifting. Our gift cards offer your people the chance to select gifts that match their individual preferences, and they help HR make rewards easier and more effective.

FAQs

1. How much should a company spend on gifts for employees?

There is no ideal figure that can be used universally. The budget will depend on the occasion, the size of the workforce, the resources of the organisation and what the organisation aims to communicate.

2. Can an employer use a gift card with a gift hamper?

Yes, offering a small festive gift hamper along with a gift card allows an organisation to give both a gesture of appreciation and an opportunity to choose for the recipient.

3. Which are the best gift baskets for corporates?

The best gift baskets for corporates would include a basketful of chocolate, dry fruit, gourmet snacks, tea, coffee, and personalised gifts which are preferred by employees. To give more options for employees, firms can combine holiday baskets with multi-brand gift cards.