Small Gifts or Perks for Employees - Do You Give Them?

Atomico

I am toying with a potential new idea which could go in a couple of different directions. The initial idea sounds good but I am not sure if it ties in with what people actually already do, i.e. it probably isn't a very common existing behaviour as such.

The other direction would be a website / tool that would make it much easier for companies / businesses to give their employees and interns small gifts or perks. By this I mean items costing a very modest amount per unit, e.g. €5 towards Friday morning coffee or breakfast at the nearby cafe, or a small gift voucher for the local shopping or leisure centre, restaurant, etc.

So, token gifts that don't cost very much in these cash-strapped times, especially since they wouldn't be given out that often, but which can serve to boost morale and motivation - and which are just nice to do I suppose.

Is this something you do on a regular or occasional basis with your staff? If so, what kind of perks do you hand out - and how do you usually organise it? I'm asking these questions in an attempt to gauge potential demand and uptake by target customers for the tool.

The website in question would make it very easy to select from a range of simple, inexpensive perks - and would save time in terms of granting them to employees.

It's a simple idea but one that wouldn't cost much to test.

Cheers

jimmii

A lot of places give vouchers for tax reasons. I used to work for a place where there were sales incentives where you got points which you could redeem at a site similar to what you are suggesting where you could buy vouchers for retailers or buy products direct (I got a laptop with mine) it was a nice system if you got a few large employers to sign up and use it to reward performance it could work for sure but I would imagine a few already have something in place.

Atomico

jimmii wrote: »

A lot of places give vouchers for tax reasons. I used to work for a place where there were sales incentives where you got points which you could redeem at a site similar to what you are suggesting where you could buy vouchers for retailers or buy products direct (I got a laptop with mine) it was a nice system if you got a few large employers to sign up and use it to reward performance it could work for sure but I would imagine a few already have something in place.

Exactly. This system would be based entirely around vouchers too, and that's great as it fits in with the tax elements.

With the model I have in mind, I would be looking more towards the vast swathe of SMEs and startups out there, as opposed to the bigger companies, most of whom probably have a system in place already as you say. Think there could be good potential there to reach a fairly decent-sized chunk of customers.

Buttercake

i worked for an american multinational in sales and they had something like that, a intranet page with everything from Pint vouchers at the pub to Watches to Ski Trips, each one had a point value. Of course if we hit our day/week/month targets we would get points.

It did work in terms of productivity but thats with a sales team who will be used to it. Suppose the same could apply to all employees if they reach their own metrics.

Edit: any of the rewards were provided by local businesses.

Atomico

Buttercake wrote: »

i worked for an american multinational in sales and they had something like that, a intranet page with everything from Pint vouchers at the pub to Watches to Ski Trips, each one had a point value. Of course if we hit our day/week/month targets we would get points.

It did work in terms of productivity but thats with a sales team who will be used to it. Suppose the same could apply to all employees if they reach their own metrics.

Edit: any of the rewards were provided by local businesses.

Sounds cool, my approach would be slightly different but similar!

Do you mean 'all of the rewards were provided...?' That would be my intention too, linking up local businesses with employers.

jimmii

I was planning on just offering one4all vouchers this would definitely be a more interesting alternative! How much would you be charging for the service?

Atomico

jimmii wrote: »

I was planning on just offering one4all vouchers this would definitely be a more interesting alternative! How much would you be charging for the service?

I think it would be too!

I would be thinking of flat monthly fee where you could cancel at any time. Not sure how much exactly, but would be tiered based on the number of users.

So say you had 10 people working for you, it might start at €20/month. If you had 20 it could be €40/month.

Sound reasonable?

I have a simple but cool feature in mind for it too, which would make it more than just a standard gift-buying tool / website

Buttercake

Bonusbonds might be better than one4all vouchers

If you give your employee bonusbonds, they are not taxed or dont have to pay tax on them....AFAIK

do you mean 'all of the rewards were provided...?' That would be my intention too, linking up local businesses with employers.

all the rewards were provided by local suppliers - ski trip from travel agent, pub vouchers from pub etc

Atomico

Buttercake wrote: »

all the rewards were provided by local suppliers - ski trip from travel agent, pub vouchers from pub etc

Figured you meant that alright! It's win-win for all parties as local suppliers benefit and employers can feel good about supporting local business

scwazrh

If you give an employee a voucher as a bonus , is it tax deductible for the company?Also if as an employee you receive a voucher / gift as a form of payment / reward would it not be subject to tax in some form , BIK or PAYE ?

Graham

scwazrh wrote: »

If you give an employee a voucher as a bonus , is it tax deductible for the company?Also if as an employee you receive a voucher / gift as a form of payment / reward would it not be subject to tax in some form , BIK or PAYE ?

If it's a once a year thing it would appear to fall under the Revenue Commissions small benefits exemption scheme for amounts less than €250. This is exempt from Income Tax, Universal Social Charge (USC) and employee & employer’s PRSI.

If I'm reading things correctly though, it can only be used once per year. So if you're talking multiple gifts of €5, only the first gift is covered by the exemption.

Added: http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/miscellaneous.html#misc11

barneystinson

Graham wrote: »

If it's a once a year thing it would appear to fall under the Revenue Commissions small benefits exemption scheme for amounts less than €250. This is exempt from Income Tax, Universal Social Charge (USC) and employee & employer’s PRSI.

If I'm reading things correctly though, it can only be used once per year. So if you're talking multiple gifts of €5, only the first gift is covered by the exemption.

Added: http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/miscellaneous.html#misc11

That's correct, one tax free small gift p.a.