The 10 best gift cards for your employees
By Zach Links●7 min. read●Oct 13, 2026
Employee gift cards aren't just another perk. They're a smart investment that can increase employee engagement by 40%, and employee turnover rates are ~43% lower for highly engaged employees.
Companies are increasingly turning to gift cards to recognize and reward employees. And employees prefer them: our research shows that workers want rewards they can spend flexibly.
However, the magic of gift cards goes beyond simple spending power. Research from the University of Wisconsin-Madison and the University of Waterloo, found that tangible rewards like gift cards can motivate employees to put in more effort than cash rewards of equal value.
The reason lies in the psychology of motivation. People see gift cards as special "treat yourself" funds, encouraging recipients to buy something they want rather than something they need. Cash usually goes towards daily expenses, but gift cards feel more like a treat, which is part of why they motivate more effort.
Here’s a look at the best gift cards for your employees, as well as some best practices for employee recognition.
Key takeaways
Recognition pays off. Engaged employees are ~43% less likely to leave, and gift cards can help drive that engagement.
Gift cards motivate more effort than cash of equal value because they feel like a treat, not a paycheck.
Size the reward to the moment: $25 to $50 for spot recognition, $100+ for milestones and major wins.
Speed matters. Nearly 60% of employees say a reward given right after a milestone is more motivating than a year-end bonus.
Types of gift cards you can give to employees
It’s difficult to choose meaningful physical gifts for employees you may not know well. Shopping for and sending those gifts requires significant resources, making this approach difficult to scale. Plus, with physical gifts, employees often end up with items they don't want.
This explains why 65% of employees say they prefer cash rewards — they want flexibility. Gift cards offer the perfect middle ground, combining the freedom of cash with a more personalized touch. They're easy to distribute at scale, arrive instantly, and empower employees to choose rewards that matter to them.
Here are the main types of gift cards to consider for your recognition program:
Prepaid cards: Virtual prepaid cards function similar to regular debit cards. They provide employees with a lot of flexibility in how they use their reward, since they work virtually anywhere cards are accepted.
Online retailers and marketplaces: Major e-commerce brands like Amazon.com and Target combine vast selection with convenience. These cards give employees access to millions of products, from everyday essentials to unique finds.
Food and beverage: From coffee shops to restaurant delivery services, these cards add a treat factor to recognition. They're ideal for frequent, smaller rewards or celebrating specific achievements. Starbucks and DoorDash are always a hit, but you can also provide more local options based on your employee locations.
Digital entertainment and services: Gaming, streaming services, and digital content let employees indulge in their personal interests. Options like Apple Music, Spotify, and Netflix can cover everything from apps to cloud storage to entertainment subscriptions.
Tech and electronics: From Apple products to gaming consoles, these cards suit both tech enthusiasts and casual users. They're especially great for rewarding major accomplishments or team milestones.
The top 10 gift cards for employees
Based on a combination of our U.S. gift card redemption data over the last year and our personal recommendations based on current corporate gifting trends, these are some of the top gift cards for employees:
1. Virtual prepaid cards
Virtual prepaid cards like Visa or Mastercard offer the ultimate in versatility. They function similarly to debit cards and are accepted at many different types of merchants. Recipients can use them both online and in stores, making them ideal for all types of employees.
The digital nature of virtual prepaid cards makes them easy to deliver instantly, and employees consider them to be just about as valuable as cash itself. Most importantly, they give employees complete freedom to use the reward in whatever way matters most to them.
2. Amazon.com gift cards
Amazon.com gift cards have universal appeal and give employees access to millions of products across virtually every category imaginable, from everyday essentials to electronics, books, and retail items. With both website and mobile app options, employees can easily redeem their rewards whenever and wherever they prefer.
3. Walmart gift cards
Walmart is the largest retailer in the U.S., with more than 5,200 stores within 10 miles of approximately 90% of the U.S. population. Odds are good that your employees already shop there.
The appeal here is mostly practical: a Walmart gift card can cover groceries, household essentials, a new TV, or a fill-up at the pump. And with same-day pickup and delivery through the Walmart app, employees can redeem their reward without leaving their house.
4. Google Play gift cards
Google Play gift cards give Android users a reward they can use without leaving their phone. Recipients can put them toward apps, games, movies, books, and subscriptions like YouTube Premium and Google One storage.
Since Android powers a big share of U.S. smartphones and most phones worldwide, these cards have broad appeal across a distributed workforce.
5. Apple gift cards
Apple gift cards have evolved far beyond music purchases, so they’re among the best gift cards for employees. Recipients can use them for Apple TV+ subscriptions, apps, games, extra iCloud storage, and more.
With iPhones holding 57% market share in the U.S., these cards have broad appeal for your workforce. They're especially valuable for those who use multiple Apple services or devices.
6. Starbucks gift cards
With just under 17,000 retail stores across the country., there’s practically a Starbucks on every corner. Odds are, there’s one near your employees, especially if they’re based in the U.S.
Starbucks gift cards are perfect for frequent rewards and spot recognition since most people visit coffee shops regularly. Plus, the Starbucks app makes redemption easy.
7. Target gift cards
With physical stores in every state and robust online shopping, Target hits the sweet spot between household staples like groceries and specialty items that feel like a treat.
Target gift cards let employees choose how to use their reward. And Target’s strong online presence means these cards work well no matter where your employees are located.
8. DoorDash gift cards
Food delivery services have become essential, especially for remote workers. DoorDash partners with thousands of restaurants, giving employees plenty of dining choices.
The convenience factor makes these cards particularly appealing for busy employees.
9. Kroger gift cards
Kroger is the largest supermarket chain in the U.S., operating under a collection of different names like Ralphs, Fred Meyer, King Soopers, Harris Teeter, and Fry’s. Odds are good that your employees already shop at one of Kroger’s stores.
Groceries are an inherently practical reward, and that’s the appeal here. A Kroger card can cover a week of meals, a stocked pantry before the holidays, or a fill-up at a Kroger fuel center. Pickup and delivery options mean employees can redeem gift cards without even leaving home.
10. Best Buy gift cards
Best Buy gift cards are ideal for tech-savvy employees. The retailer offers everything from smartphones to gaming systems to home theater equipment.
These cards work particularly well for significant recognition moments where larger reward amounts are appropriate. Best Buy's support and installation services add extra value to the reward so your employees get the most out of their reward.
Dos and don'ts of employee gifting
Implementing an effective gift card recognition program isn’t just about choosing the right gift cards for employees. It also requires thoughtful planning and execution to provide a great experience.
Here are a few best practices to follow, plus some common pitfalls to avoid:
Employee gifting dos
Keep recognition timely and specific: Nearly 60% of employees say that rewards are more motivating when given immediately after a major milestone rather than as a once-a-year bonus. Document specific achievements and deliver rewards within days, not weeks or months.
Allow employees to choose their preferred gift card: More choices can increase employee engagement and increase the perceived value of your rewards.
Maintain consistent recognition across teams: Establish clear criteria for rewards and ensure all departments follow the same guidelines. This builds trust and prevents any perceptions of favoritism.
Document your gifting policies: Create transparent guidelines describing when and how you award gift cards. Clear policies help managers implement recognition consistently and fairly.
Employee gifting don’ts
Wait too long to reward achievements: Recognition loses impact over time. With a flexible rewards platform, you can ensure instant reward distribution every time.
Give everyone the same gift card: Different employees have different preferences. Offering choice in rewards shows you respect individual preferences.
Create unfair disparities between departments: Inconsistent practices can damage morale. Regular audits of your recognition program can help identify and correct imbalances.
Skip proper record-keeping: Good documentation helps you measure program effectiveness and stay tax-compliant. Track metrics like engagement and retention to demonstrate ROI.
Tax implications for employee gifts
Gift cards are considered taxable income by the IRS, regardless of the amount. Even for small gifts, U.S. employers should keep documentation of all rewards they send and report them appropriately.
Rewards sent to non-employees like contractors, customers, or research participants follow different rules. For the 2026 tax year, you’ll need to collect a W-9 and file a 1099 once an individual recipient receives $2,000 or more in a calendar year.
Disclaimer: Tremendous can't provide tax or legal advice. While we've covered the basics of gift card taxes here, you should run your plans past your company's tax advisors to be sure you’re distributing employee gifts in a way that’s fully compliant and optimized for your situation.
