What-you-must-know.comCurrent trendsWhy do companies give gift cards after layoffs ?

Why do companies give gift cards after layoffs ?

The main element that fuels the hard work of the staff in a company is the motivation of the people. Although the salary is an important element in the employee-employer relationship, certain tips such as gifts, bonuses for effort and skills, accommodation bonuses, etc., help to strengthen the quality of staff work. This is why gift cards were created, and they are offered to employees even after a layoff. Why are companies taking this initiative?

What are gift cards?

Among the gift ideas, the gift card is an innovative trick for companies. It’s like a voucher given to employees of a company. The voucher or gift card is a means of payment prepaid up to a certain amount by the employer or the structure. In other words, it is not an object given as a gift, taking the example of Santa Claus, or a show ticket, nor a discount voucher, nor a promotion code but it is a card or a check that can be exchanged for products of any kind, under specific conditions.

The value of a gift card or gift voucher varies depending on the vouchers purchased by the company from specialized companies. Thus, there are three (03) forms of gift vouchers which are:

  • gift voucher to be used in a single store or single store,
  • multi-brand gift card that allows you to make purchases in several shopping centers and/or stores
  • thematic gift voucher.

The latter concerns a specific theme such as health, gastronomy, clothing… It can be used in a single department or to buy products from the same family. This form of gift appears to be an easy way, less taxed, to offer employees bonuses and other forms of gratuity, to motivate staff. The latter according to their convictions, choices and desires buy useful objects for them.

Gift cards for which occasions?

Corporate gift vouchers and cards are offered by the Social and Economic Committee (CSE) or directly by the employer (the company) on behalf of social and cultural activities. The employee can benefit from it on different occasions. The main objective of gift vouchers is to offer a benefit in kind that can be used to please him and to retain him. This solution also makes it possible to increase the purchasing power of the employee, through sometimes colossal amounts, allowing him to afford several businesses, partly without tax.

In addition, the gift card is a means of recognizing the services performed by the employee, an ingenious way of thanking the employee for the good and loyal service rendered to the company. This is the reason why many companies offer an employee gift card after termination or any form of departure from the company. The gift certificate can be issued to all employees or to a part according to the conditions of merit or distribution. However, generally, all employees are affected.

The principle of gift cards remains to build employee loyalty, and by extension to express the recognition of the company. As such, the gift voucher is a supplement to the compensation reimbursed to the employee in the event of dismissal. This is a gesture that shows that the company treats staff well, in terms of corporate communication.