Should you be planning your employee Christmas rewards now?

We know that in the UK the sun is only just coming out – but our research shows that many businesses are starting to think about what they will do for employee Christmas rewards!

We’ll take a look at why now could be the perfect time to consider your options, and what’s likely to be a most wanted employee gift for Christmas 2022.

Why look for employee Christmas rewards now?

Simply, if you’ve ever tried to sneak something into the budget last minute, you’ll know it can be a pretty had task. Every business needs to have an overview of what’s coming, and employee Christmas rewards absolutely need to be accounted for! There are also some other benefits we will cover shortly. But first…

How much should you spend on employee Christmas rewards?

In the UK, the tax rules of employee rewards state that anything over £50 per head, given as a one off gift at Christmas time, is subject to income tax and National Insurance. So if you’re thinking about giving an employee reward that’s worth more than this – it’s important to start planning ahead!

The UK guidance actually states that the money shouldn’t be based on performance. So if you are thinking about linking it to targets hit – that’s not the way to go! It should be a gift that isn’t mentioned in the employee contract, and is given as a thank you for their work over the past year.

Many businesses can and do keep to this £50 budget, but if you’ve had a bumper year, perhaps it’s time to reward your people. Or if the years not been great why not at least send your hard working employees off with a little bit of Christmas cheer?

Should you be planning your employee Christmas rewards now?

We know that in the UK the sun is only just coming out – but our research shows that many businesses are starting to think about what they will do for employee Christmas rewards!

We’ll take a look at why now could be the perfect time to consider your options, and what’s likely to be a most wanted employee gift for Christmas 2022.

Why look for employee Christmas rewards now?

Simply, if you’ve ever tried to sneak something into the budget last minute, you’ll know it can be a pretty had task. Every business needs to have an overview of what’s coming, and employee Christmas rewards absolutely need to be accounted for! There are also some other benefits we will cover shortly. But first…

How much should you spend on employee Christmas rewards?

In the UK, the tax rules of employee rewards state that anything over £50 per head, given as a one off gift at Christmas time, is subject to income tax and National Insurance. So if you’re thinking about giving an employee reward that’s worth more than this – it’s important to start planning ahead!

The UK guidance actually states that the money shouldn’t be based on performance. So if you are thinking about linking it to targets hit – that’s not the way to go! It should be a gift that isn’t mentioned in the employee contract, and is given as a thank you for their work over the past year.

Many businesses can and do keep to this £50 budget, but if you’ve had a bumper year, perhaps it’s time to reward your people. Or if the years not been great why not at least send your hard working employees off with a little bit of Christmas cheer?

Offering variable value employee Christmas gifts

This is a tricky topic for many businesses. How do you reward people who have gone above and beyond, while not demoralising other team members? After all, everyone has their part to play in company success. While traditional employee rewards often show glaring inconsistencies – Greg in sales getting a hamper the size of a small island, while Stephen in IT get’s a small wine box – digital reward cards such as The Lifestyle Voucher offer a more discreet way to offer some employees a little extra, if it has been well and truly earned.

What is important is to back up the reasoning on your personalised employee reward note. Tell them why they have received their Christmas Reward. For example:

“Greg, as Christmas is a time for reflection, we look back and note that we couldn’t have landed the big account without the extra hours you did at short notice, and your travel on Sunday evening to make the meeting in Glasgow didn’t go unnoticed. Thank you – and merry Christmas.”

Other simple messages could state a more general view of appreciation.

“Thank you Stephen for all you do. The IT team is running so smoothly and we can’t wait for 2023.”

“You are a valued member of the team. Please enjoy your Christmas break, we look forward to a great 2023!”

What are the best employee Christmas rewards?

One of the most popular rewards in 2021 was gift cards, according to a survey by OnePoll, and it looks set to be the same in 2022.

42% of respondents said they would be happy to receive a gift card as a work Christmas present, while 37% noted that they would prefer a voucher that could be used in a number of different stores.

Other popular options included experiences (such as tickets to a show or afternoon tea), alcohol and food hampers.This was followed by luxury items such as hampers or wine boxes.

With more employees working remotely (a study in 2022 showed in the UK alone, 43% of employees worked from home at least some of the time) – many businesses are opting out of large gifts that need to be hand delivered to a home or remote location, and are instead investing that postage money into digital gifts and reward vouchers.

When should you order your employee Christmas rewards?

In short – the sooner the better! We all know how stressful it can be as the peak season arrives, and people book annual leave and aren’t in the office or working. By ordering employee Christmas gifts now, and having them delivered on mid to late December, you can ensure people get their gift and could even use it to lighten the burden of an expensive Christmas break.

By getting it in advance they could….

Take their family to an event or for a meal
Cut the costs of an online shop for presents for loved ones
Invest in something they need to host – such as tech like a TV or even some extra chairs.
By putting employee’s first, you can ensure you get the perfect employee Christmas reward.

Also consider the admin on your side.

Getting data, organising lists, preparing the right message, creating branded company banners all means a lot of prep work. The sooner you can check this off your to-do list, the better!

Why not order your Lifestyle Vouchers for your team today?

PS – Did you come for the Christmas joke?

What reindeer game do reindeer play at sleepovers? Truth or deer.
What’s the absolute best Christmas present? A broken drum — you can’t beat it!
Who is never hungry at Christmas? The turkey—he’s always stuffed.

Offering variable value employee Christmas gifts

This is a tricky topic for many businesses. How do you reward people who have gone above and beyond, while not demoralising other team members? After all, everyone has their part to play in company success. While traditional employee rewards often show glaring inconsistencies – Greg in sales getting a hamper the size of a small island, while Stephen in IT get’s a small wine box – digital reward cards such as The Lifestyle Voucher offer a more discreet way to offer some employees a little extra, if it has been well and truly earned.

What is important is to back up the reasoning on your personalised employee reward note. Tell them why they have received their Christmas Reward. For example:

“Greg, as Christmas is a time for reflection, we look back and note that we couldn’t have landed the big account without the extra hours you did at short notice, and your travel on Sunday evening to make the meeting in Glasgow didn’t go unnoticed. Thank you – and merry Christmas.”

Other simple messages could state a more general view of appreciation.

“Thank you Stephen for all you do. The IT team is running so smoothly and we can’t wait for 2023.”

“You are a valued member of the team. Please enjoy your Christmas break, we look forward to a great 2023!”

What are the best employee Christmas rewards?

One of the most popular rewards in 2021 was gift cards, according to a survey by OnePoll, and it looks set to be the same in 2022.

42% of respondents said they would be happy to receive a gift card as a work Christmas present, while 37% noted that they would prefer a voucher that could be used in a number of different stores.

Other popular options included experiences (such as tickets to a show or afternoon tea), alcohol and food hampers.This was followed by luxury items such as hampers or wine boxes.

With more employees working remotely (a study in 2022 showed in the UK alone, 43% of employees worked from home at least some of the time) – many businesses are opting out of large gifts that need to be hand delivered to a home or remote location, and are instead investing that postage money into digital gifts and reward vouchers.

When should you order your employee Christmas rewards?

In short – the sooner the better! We all know how stressful it can be as the peak season arrives, and people book annual leave and aren’t in the office or working. By ordering employee Christmas gifts now, and having them delivered on mid to late December, you can ensure people get their gift and could even use it to lighten the burden of an expensive Christmas break.

By getting it in advance they could….

Take their family to an event or for a meal
Cut the costs of an online shop for presents for loved ones
Invest in something they need to host – such as tech like a TV or even some extra chairs.
By putting employee’s first, you can ensure you get the perfect employee Christmas reward.

Also consider the admin on your side.

Getting data, organising lists, preparing the right message, creating branded company banners all means a lot of prep work. The sooner you can check this off your to-do list, the better!

Why not order your Lifestyle Vouchers for your team today?

PS – Did you come for the Christmas joke?

What reindeer game do reindeer play at sleepovers? Truth or deer.
What’s the absolute best Christmas present? A broken drum — you can’t beat it!
Who is never hungry at Christmas? The turkey—he’s always stuffed.

Order your Christmas rewards today

Our bespoke, physical gift wallets or eVouchers let your teams know that loyalty is important to your business.

We pride ourselves in speedy turnarounds. Vouchers are sent out within 24 hours.

The beauty of our business is our flexibility. We help tailor your rewards to suit your business.

All of this with absolutely no admin fees, service charges or contracts!

Call us 0300 140 0010