Small rewards such as gift cards are boosting morale and loyalty among employees, but large sections of the workforce are missing out, raising concerns about fairness and workplace culture, new research suggests.
The data shows that while recognition schemes are becoming more common, access to them remains uneven across contract types and sectors, leaving some employees feeling undervalued.
It reveals a widening divide in how organisations recognise staff, despite growing awareness of the role rewards play in engagement and retention.
Recognition linked to morale and retention
Research from the Gift Card & Voucher Association found that 72 percent of employees said receiving a gift card made them feel more positive about their work.
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A further 88 percent said even a modest £50 reward had a meaningful impact on their everyday life, whether through small treats, shared experiences or help with household costs.
Employers also reported clear benefits. Three quarters said rewards were used to show appreciation, while more than half said they helped boost morale and improve retention.
Hannah Shimko, managing director of the Gift Card & Voucher Association, said recognition had a direct impact on how employees feel at work. “Recognition shouldn’t be a privilege reserved for certain contracts or sectors. Our research shows that employees who receive rewards feel valued and supported, and that translates into higher motivation and loyalty.”
She warned that access to these benefits remains uneven across the workforce.
“Yet too many part-time staff and public sector workers are missing out. This is a moment for employers and policymakers alike to reflect on who is being recognised and who is being overlooked. Rewarding staff is not just about perks, it is about creating cultures of appreciation and inclusion. Gift cards provide a simple yet personal way to show staff they matter,” she said.
Part-time and public sector workers less likely to benefit
The research found a clear gap between full-time and part-time employees. Nearly two-thirds of full-time staff said they had received some form of reward in the past year, compared with just over a third of part-time workers.
Differences between sectors were also pronounced. Employees in technology and construction were far more likely to receive rewards than those working in government or education.
The disparities risk reinforcing existing inequalities in workplace experience, observers say, particularly in sectors where pay progression may already be more limited.
Employers expand reward strategies amid pay pressure
Many organisations are increasing their use of reward schemes as they look for alternatives to large pay increases. Two-thirds of employers said they had changed their approach to rewards in the past three years, with nearly three-quarters expecting to increase their use over the next year.
There is also a growing move towards digital rewards and more personalised approaches, allowing organisations to recognise staff across hybrid and dispersed teams more effectively.
At the same time, employers are placing greater emphasis on flexibility, giving employees more choice in how rewards are used. The Association said confusion around existing tax rules may be limiting wider adoption of reward schemes.
The group is calling for greater clarity around the £50 trivial benefits allowance, which allows employers to provide small, non-cash rewards without additional tax implications.
It said improving understanding of the scheme could help organisations offer recognition more consistently and confidently. An independent analysis cited by the organisation suggested that expanding the allowance could deliver wider economic and productivity benefits by encouraging more employers to invest in recognition.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
