From implementing employee loyalty programs to managing expenses, the advent of corporate Visa gift cards has proven to be one of the best things to happen to HR and accounting departments of small- to large-scale businesses worldwide.
That much is evidenced by the unprecedented growth in the global gift card market size, due to rising demand in retail and corporate environments.
In fact, a Market Research Future report suggests that businesses using gift cards for employee rewards and retention strategies is one of the key drivers of the US$444.25 billion gift card market in 2024.
This trend continues to prevail through 2025, and it doesn’t look like it will run out of steam anytime soon.
So, why are businesses going for corporate gift cards over swags and other traditional perks? How would your business benefit from a corporate gift card reward program? What should you expect from your gift card provider?
But before we get into that, it helps to first know why old employee reward systems are losing steam.
Outdated Reward Systems Are Fading
We are in a new era of work and employees.
Workplaces across the globe are leaning more towards hybrid work models, and employee demands for flexibility and general well-being are louder and clearer than ever before.
As with everything new, there comes a time when the obvious course becomes doing away with the old to make more room for the demands of the new. This also applies to everything that has to do with managing employees, including reward systems.
Ralph Kilmann, Ph.D., of the Training Industry, suggests that it is problematic for companies to design their reward systems with yesterday’s world in mind or a false assumption of what motivates employees.
Regular bonuses, such as generic souvenirs, gift items, and paper certificates that fail to acknowledge the diverging needs of each employee, simply don’t cut it anymore.
The growing expectations from employees for flexibility, personalization, and instant value mean that businesses have to redefine their reward systems to keep up. This is where custom Visa gift cards for employee rewards come into the picture.
Why Companies Are Switching to Corporate Visa Gift Cards
There is no denying that pressures from the cost of living and financial stresses are some of the key stress factors impacting employees’ productivity in and out of the workplace.
U.S. companies lose $180b to $250b in productivity annually due to financially stressed employees. In the U.K., about 74% of HR leaders report cost-of-living pressures on employees as one of the major factors affecting workplace performance.
Modern employees prefer rewards that can relieve them from these pressures. Looking closely, you can see how souvenirs, swags, and “thank yous” don’t fit the bill.
So, it all makes sense that modern employees are demanding more personalized rewards, like corporate Visa gift cards, which offer much-desired flexibility and instant value.
Custom gift cards are not only thoughtful and personal, but also valuable enough to potentially keep employees from the traps of short-term payday loans, credit card advances, buy-now-pay-later, and other debilitating financial habits driving more and more people into unnecessary debt.
For employers and HR leaders, the benefits are even more extensive:
- Universality: With Visa’s dominance in 123 countries and substantial presence in another 45, corporate Visa gift cards are accepted worldwide by merchants that accept credit cards. This gives employees the flexibility to spend effortlessly wherever Visa is accepted.
- Ease of administration and scaling: Corporate Visa gift cards from reliable and renowned providers are super easy to manage and scale, with providers like Awards2Go offering bulk prepaid Visa gift cards that can be activated or deactivated at any time of the day.
- Possibility of personalization for the company brand: Businesses can personalize corporate Visa gift cards to bear employee names, personal messages, or their favorite meme. They can also customize the gift cards with their company logo, colors, and other relevant attributes, further enhancing the company’s exposure.
- Transparency of expenses and budget control: Here, it is all about enjoying the convenience of easily allocating expenses (for travel, group lunch, utilities, etc.) months or even a year ahead of time, and being confident that the money in the card is well-secured for the allotted purpose and all the expenses can be easily tracked and controlled.
Besides corporate Visa gift cards, you’d be hard-pressed to find a more versatile reward that is significantly beneficial to both the company and the employees. Therefore, companies are increasingly choosing custom gift cards as their first choice for employee reward programs.
You might think cash bonuses and even vacation days, but those simply don’t measure up either.
How so? You may ask.
How Visa Gift Cards Compare to Other Employee Perks
Let’s take a quick look at how corporate Visa gift cards compare to other employee perks, including merch, bonuses, and vacation days.
- Corporate Visa gift cards vs. merch: Corporate Visa gift cards offer employees the flexibility to buy whatever they want, including preferred merch, unlimited to company branding materials. On the other hand, modern employees now see merch for what they are: company branding and engagement material. While they might be useful in some ways to the employee, they are not considered a comprehensive employee reward program, as they are hardly suitable enough to solve any pressing issues for the employee—they are limited in application.
- Corporate Visa gift cards vs. bonuses: The rise of digital payments means that cash is fast losing its dominance globally. And with many businesses transitioning to card-only/cashless policies, corporate Visa gift cards take the spot as a more versatile option over cash bonuses. Even in instances where the bonus is deposited directly to the employee’s bank account, corporate Visa gift cards remain the much preferred option, as they can be used to easily and instantly pay for goods and services anywhere in the world without unnecessarily high interbank charges and conversion fees.
- Corporate Visa gift card vs. vacation days: Living and working in fast-paced environments makes vacation days seem like a burdensome passage of time rife with worries, especially in cases where employees are afraid of returning to a truckload of work or being seen as replaceable or undedicated to work. More so, it is now more difficult to disconnect during vacations. These fears, while understandable, are so strong that more U.S. employees are taking less time off work even when employers offer paid time off. This is to the point where employers are now considering mandating vacation days. On the other hand, corporate Visa gift cards make for a more convenient and welcome reward, as there are no fears attached to them. Employees will more willingly accept and use their gift cards than deal with the stress of asking for time off.
Generally, Visa gift cards are more versatile, easy to use, and faster to use, too, offering employees that instant motivation they need to push company goals with ease and peace of mind.
That said, gift card reward programs are only as good as the providers behind them. Hence, it is crucial to work with reliable gift card providers.
There’s so much more to discover—browse our related posts!
What to Look for in a Business Gift Card Provider
Most businesses in the U.S. are serviced by a few top gift card providers, such as Awards2Go, that have been in the business long before corporate Visa gift cards became trendy.
The market is getting saturated due to high demand, necessitating that companies do due diligence to ensure they are working with the right provider.
In this context, things to look out for include:
- Transparency of conditions: The terms of service should be clear about the extent and limits of provision without entrapping your company with outrageous fees. Also, avoid providers offering gift cards with short validity periods. Regulation E of the Credit Card Accountability Responsibility and Disclosure Act of 2009 indicates that gift cards must have a minimum validity of 5 years.
- Level of customization: Go for gift card providers that offer the freedom to customize the gift cards with as much personal messaging or company branding as is necessary, including texts, logos, colors, and images.
- Seamless activation: Check for the likelihood of delayed activations or additional downloads after initial commitment. The goal is to choose a provider with a very simple process and card management options that allow for activation at any time of the day.
Most importantly, ensure that your corporate Visa gift card provider offers 24/7 support and maintenance, eliminating the chances of unnecessarily prolonged downtimes.
Before anything else, confirm that the provider is licensed by Visa®!
Final Thoughts: Motivation That Actually Motivates
Various factors in the new era of work demand that employers take new approaches to meet new employee expectations, especially in terms of flexibility, instant value, and personalization.
Corporate Visa gift cards have proven to be the absolute best option for companies looking to meet these employee expectations through strategic employee reward programs. Thus, leading to a rise in the use of corporate Visa gift cards for employee rewards.
With the gift card market size projected to reach US$750 billion by 2035, it is clear that this trend is not going to fade anytime soon.
For forward-thinking businesses, this simply means that it is time to revise their employee reward programs with flexible solutions, such as Visa gift cards, which are versatile enough to meet the expectations of all employee personalities, while keeping them motivated.
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