Gift cards for employees: cost for the company or investment in its competitiveness on the market?

The quick answer is: both. Technically and in terms of accounting, gift cards are a cost to an enterprise, while from a modern and wise human resources perspective, gift cards are an investment in the future of our company.

Gift cards are one of many direct instruments of modern incentive policy for companies, taking care of employee well-being, employee motivation and attitude to the workplace, while indirectly affecting the competitiveness of companies on the labor market and their image as an employer.

This criterion has become equally important with others, because of the so-called employee market development – once employment was associated with employee submission to the company and unequal relations, while nowadays in healthy and mature organizations there should be a balance in mutual relationship: the company employs an employee because it values his competences, skills and personality, while the employee decides to choose a given company because, apart from competitive remuneration, it also values the employer’s reputation, work environment, atmosphere and people. An important element complementing the whole are non-wage benefits offered to employees, such as gift cards for well-known brands.

Gift cards are usually bought by enterprises as comprehensive packages, so-called cafeteria systems – remuneration systems that allow employees to choose from a range of benefits offered within a certain financial limit. An example of a cafeteria offer: tickets to the gym, swimming pool, fitness, prepaid cards, tickets for sporting and cultural events or just gift cards and vouchers for stores of known chains and brands.

In order to motivate companies to use this solution and its popularization and to facilitate financial settlements, the fiscal system of many countries, including Poland, has provided tax and social security (ZUS) incentives related to the use of this solution. Specific categories and type of gift cards aimed at employee development can be even exempted from taxation. In Poland, this limit amounts to PLN 1000 per employee per year and is regulated by the company social benefits system (ZFŚŚ).

There are many employee benefit agencies on the market (B2B channel) which, apart from an attractive substantive offer (interesting brands in portfolio) also offer comprehensive support in the settlement of gift card costs – they know which cards fall within the scope of benefits covered by the social benefits fund, how to qualify them as costs and bill them.

Amilon also offers a wide range of gift cards in its portfolio – around 200 partner brands around the world – which are used to reward and motivate employees. Gift cards are available in various denominations and conditions of use. We help in choosing them for your company and employees. We remain at your disposal for the contact and consultancy.

Article written by Karol Ziółkowski, Business Development Manager Poland @  Amilon Warsaw