Why employees prefer cash over gift hampers and vouchers

In today’s corporate landscape, the choice between receiving monetary rewards and traditional gift hampers and vouchers has become a topic of considerable interest.

Numerous studies and workplace surveys shed light on the underlying reasons why a significant portion of employees, express a clear preference for cash incentives. Let’s delve into some of the key factors that drive this inclination.

According to Smith Employees appreciate the flexibility that cash provides. Unlike gift hampers, this may not cater to individual preferences, since cash allows recipients to use the reward in a way that suits their unique needs.

While writing a literature review on Employee empowerment and empowering leadership, Jones highlighted that Cash rewards empower employees by giving them the autonomy, to decide how they want to spend or save their earnings. This autonomy fosters a sense of control over their financial well-being.

The Internal Revenue Service in 2022 explained that from a financial standpoint, cash bonuses often have more favorable tax implications compared to non-monetary gifts. Employees may see greater value in receiving money that is not subject to additional taxes or reporting requirements.

According to Steven Johnson, Cash is a universally accepted form of compensation that can be used for a variety of purposes, including bills, savings, or discretionary spending. This practical utility contrasts with gift hampers, which may not align with an employee’s immediate needs.

In their research titled “What type of recorgnition do employees want” Brown and white recorgnized that Cash rewards are perceived as a form of direct recognition for an employee’s contributions. This individualized acknowledgment may resonate more deeply than a generic gift hamper, contributing to increased morale and job satisfaction.

In his Scholarly articles for Economic Considerations, Adam Smith stressed that in economically challenging times, employees may prioritize the financial security provided by cash rewards. The tangible nature of money can offer a sense of stability, especially in uncertain economic climates.

Cassandra M. Chapman writes in a research about Identity motives in charitable giving, saying many employees value experiences over material possessions. Cash enables individuals to invest in experiences such as travel, education, or personal development, aligning with the growing trend towards experiential rewards.

As the year 2023 ends, while gift hampers may still hold sentimental value for some, the preference for cash among employees is rooted in practicality, flexibility, and the ability to meet individual needs.

As employers navigate the terrain of employee rewards, understanding these preferences can contribute to a more effective and appreciated recognition strategy in the workplace.