At time of high inflation, gift cards can be good option for employees

Clark Griswold’s boss in “Christmas Vacation” learned the potential perils of giving holiday gifts to employees. This year, however, many workers have gone from low expectations to no expectations.

Most Americans don’t expect to receive a holiday gift from their employer this year, according to new research from Blackhawk Network, which provides branded payment technologies. Nevertheless, as rising inflation causes financial challenges, employers should not underestimate the impact of holiday rewards and recognition in fostering a motivated and committed workforce throughout the year. Among the key findings of the survey:

• More than one-fourth of employees said they would consider leaving their jobs if they didn’t receive a holiday gift.
• Receiving a holiday gift makes employees feel energized for the start of the new year (71%) and feel valued (81%).
• Almost three-fourths of remote, 52% of in-person and 48% of hybrid employees surveyed believe they will not receive any holiday gift from their employers this year.
• Half of employees surveyed believe companies are bad gift givers.
• If given the choice, 65% of employees would rather receive a gift card from their employers than any other gift.

Given the current economy and low expectations, gift cards can be a good option, further research found. Almost all surveyed consumers reported they are concerned about the cost of living, and 6 in 10 plan to change their shopping behaviors to navigate inflation. Among these changes, consumers are using gift cards to manage or control spending and plan to purchase more gift cards and increase the values on them.

Despite economic headwinds, more consumers plan to buy gift cards this year and load them with higher values. Among surveyed consumers, there is a 12% year-over-year increase in the number of gift cards they plan to purchase and a 7% increase in the value they plan to load onto the gift cards. The research also found that gift card buyers and younger generations are the most generous givers, with card buyers purchasing 43% more gifts than those buying physical gifts.

Most consumers surveyed choose gift cards for choice and flexibility, but an increasing number are focusing on what people need vs. what they want. Sixty-three percent of surveyed consumers buy gift cards for what recipients need, compared to just 17% who purchase gift cards for something the recipient wants.

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“The findings emphasize the growing significance of gift cards, not just as a go-to gift but as a strategic tool for consumers,” said Jay Jaffin, chief marketing officer for Blackhawk Network. “Utilizing these insights to engage shoppers across generations and giving consumers a reason to purchase by helping to offset the impact of rising costs will mean locked in merchant loyalty and spend for the future.”