Gift cards for employees: an honest guide to the best types

When a gift card is the right call, which kind to buy and how much to give.

KraftyLab TeamUpdated 8 min read
Three plain gift cards in kraft envelopes on a wooden desk beside a blank note card and pen.

Gift cards for employees work best when choice matters more than surprise: big teams, remote teams and last-minute thank-yous. They fall flat when they arrive as a bare code with no note. We sell gift boxes, so take this as a fair guide from someone with a side: below is when gift cards are the right call, when they aren’t, the best types to buy, how much to give, ten notes to write with one, and when a gift box suits better.

When gift cards for employees are the right call

Gift cards for staff are the better choice in five situations:

  1. Large or spread-out teams. Digital cards reach everyone the same day, with no home addresses to collect and nothing to ship.
  2. Mixed tastes and diets. Nobody gets chocolate they can't eat or a mug they don't need. They choose.
  3. Last-minute moments. A digital card can go out within the hour, which no shipped gift can match.
  4. People you don't know well yet. New hires, a large department or a client team: choice beats a guess.
  5. Spot rewards. A quick, specific thank-you right after a win lands better than a gift weeks later.

When gift cards fall flat, and how to fix it

Most disappointing gift cards fail for one of these reasons. Each has a simple fix.

  1. It feels like a transaction. A code in an email with no note reads like an expense report. Add two sentences about what the person did.
  2. It's for a store they never use. A single-chain card is only a gift if they shop there. When you don't know, pick a card that lets them choose.
  3. The balance gets forgotten. Cards sit in wallets and inboxes. A card for something they'd buy this week, like lunch or coffee, gets used.
  4. Fees and fine print. Some prepaid cards carry purchase or inactivity fees. In the US, federal rules generally keep gift card funds from expiring for at least five years, but read the terms before you buy in bulk.
  5. It's the same card every year. The third identical holiday card stops feeling like a gift. Rotate the type, or alternate with a real present.

The best gift cards for employees, by type

No brand rankings here: which store wins depends on where your people live. Pick the type first, then the brand your team actually uses.

  • Multi-store and choice cards

    Best for: Large teams with mixed tastes. A prepaid card on a card network works at most places that take cards, and a choice card lets the person swap it for a brand they pick.

    Watch out: Prepaid network cards often carry a purchase fee, some need activating, and many work only in the country they were issued in.

  • Food delivery and restaurant cards

    Best for: A night off cooking after a hard push, or lunch for a remote team on a meeting day.

    Watch out: Check that delivery covers rural and international addresses.

  • Coffee shop cards

    Best for: Small, frequent thank-yous between coworkers or from a manager.

    Watch out: Only worth it if there's a shop on their commute or near home.

  • Experience cards

    Best for: Milestones and big wins: a class, a spa day, tickets or travel credit gives them a memory, not a balance.

    Watch out: Experiences are local. Make sure there's one near each person.

  • Charity gift cards

    Best for: People who have everything, and teams that value giving. The person picks a nonprofit and the money goes there.

    Watch out: Some people would rather have something for themselves. Offer it as one option, not the only one.

  • Local business and shop-local cards

    Best for: Office-based teams. Many towns and downtown districts sell one card that works at dozens of independent shops.

    Watch out: Useless to remote colleagues in other cities.

  • Bookstore and learning cards

    Best for: Readers, and growth goals: books, audiobooks or an online course.

    Watch out: Feels like homework if it comes with a reading list.

How much to give in an employee gift card

There's no rule, but these ranges are common. Whatever you pick, give everyone on a team the same amount for the same occasion.

Common gift card amounts by occasion
OccasionCommon range
Coworker to coworker$10 to $25
Spot reward for a specific win$25 to $50
Holiday gift from a manager or company$25 to $100
Work anniversary or big milestone$50 to $150

Are gift cards for employees taxable?

In the US, the IRS treats gift cards as cash equivalents, so they count as taxable wages; check with your payroll team.

How to make a gift card feel personal

The card is the money. The note and the moment are the gift.

A manager hands a small kraft envelope to a smiling employee sitting at her desk.
  1. Pick the card for the person. Their coffee shop, their bookstore, the restaurant they keep mentioning. Specific beats generous.
  2. Write a note by hand. Two sentences about one thing they did. That's the part people keep.
  3. Give it something to hold. Even a digital code can go in a printed card inside an envelope.
  4. Hand it over yourself. In person or on a video call, with a sentence of thanks out loud.
  5. Add a small treat. A coffee or a cookie with the card makes it feel like a gift today, not a balance for later.

10 short notes to write with a gift card

Copy one, swap in the detail, and write it by hand. Need more wording? See our thank-you messages for coworkers.

  1. 1. Thank you for the way you handled [project]. Lunch is on us.

  2. 2. You made this year easier for everyone around you. Enjoy something just for you.

  3. 3. A small thank-you for a big year. Spend it on whatever makes you happy.

  4. 4. For all the quiet work that kept this team running. We noticed.

  5. 5. Coffee's on me for the next few mornings. Thanks for always jumping in.

  6. 6. Your calm under pressure saved us more than once. Treat yourself.

  7. 7. Welcome to the team! Here's a little something for your first week.

  8. 8. Happy work anniversary. Here's to the next year together.

  9. 9. Thanks for making every client feel looked after.

  10. 10. Pick something fun. You've more than earned it.

Gift cards for coworkers

Buying for a peer rather than a team? Different rules apply.

  • Keep it small: $10 to $25 is plenty between peers.
  • Pool money for a bigger moment, like a farewell, a new baby or a wedding, and sign one card together.
  • Choose something they'll use this week, like their usual coffee shop or a lunch spot near the office.
  • Gifts flow down or sideways. A team gift to a boss is fine; a personal gift card up the chain can feel awkward.
  • Skip it if your company runs a gift exchange: one more card can make others feel they should match it.

Running a swap instead? Our gift exchange ideas list 75 gifts by budget, and our holiday party favors cover the small thank-you at the end of a party.

The alternative: a gift box

A gift card gives choice. A gift box gives a moment: something to open, with your note inside. Here is how they compare:

Gift card compared with a gift box
RowGift cardGift box
Feels like a giftWith a good noteOut of the box
ChoiceTheirsYours
SpeedSame day if digital2 to 3 weeks; 4 to 6 if branded or 100+
Your brand and noteOn the card or emailOn the box, ribbon and card inside
Best forBig, global or last-minuteSmall teams, holidays and clients

A box suits small teams, holidays, client gifts and any moment where you want it to feel like a present. These four chocolate boxes from our gift catalog ship to every home or office:

Order about 2 to 3 weeks ahead for a smaller unbranded order, and 4 to 6 weeks for 100 or more gifts or anything with your logo. Browse corporate gift boxes, employee appreciation gifts or holiday gifts by budget, or get a free quote for a big team. Gifts are one part of thanking people; our employee recognition ideas cover the rest.

Gift cards for employees FAQ

Are gift cards good gifts for employees?

Yes, gift cards for employee appreciation work well when choice matters: large or remote teams, mixed tastes and last-minute thank-yous. They fall flat when they arrive with no note or work only at a store the person never uses, so add two sentences about what they did.

What are the best gift cards for employees?

The ones they will use soon. Multi-store or choice cards suit large teams, food delivery and coffee cards suit quick thank-yous, and experience cards suit milestones. A charity gift card is a good extra option for people who'd rather give.

How much should you give employees in gift cards?

Common amounts for employee gift cards are $25 to $50 for a spot reward, $25 to $100 for a holiday gift and $50 to $150 for a big milestone. Give everyone on a team the same amount for the same occasion.

Are gift cards to employees taxable?

In the US, the IRS treats gift cards as cash equivalents, so they count as taxable wages; check with your payroll team. Some companies increase the amount so the employee still receives the full value after tax.

What gift card should I get a coworker?

Something small and specific: their usual coffee shop, a lunch spot near the office or a bookstore if they read. Between $10 and $25 is plenty, and a short handwritten note matters more than the amount.

Are corporate gift cards better than gift boxes?

Neither is better everywhere. Gift cards win on speed and choice for big or global teams; gift boxes feel more like a present, carry your note and brand, and suit holidays and clients. Our gift boxes start at $22.

How do you make a gift card feel personal?

Pick a card for something the person loves, write a two-sentence note about one thing they did, put it in a real envelope and hand it over yourself. A small treat alongside helps too.

Want it to feel like a present?

Chocolate gift boxes shipped to every home or office with your note inside. Tell us your headcount and budget, and get a plan within 24 hours.