The Role of Digital Rewards in Remote Work Environments

According to Deloitte’s first Global Remote Work Survey, almost 80% of companies said they allow some level of remote and hybrid work. When it comes to recognising achievements and rewarding team members, this has led to an explosion of digital-based recognition solutions and rewards.

Digital rewards, such as virtual gift cards that are delivered by email but can be used both online and in-store, play a crucial role in recognising people in remote and hybrid environments and are growing in significance as a recognition tool. With instant delivery, digital rewards can be sent quickly, eliminating any logistical or postal delays that can often arise with physical rewards. Instant delivery online also has the added benefit of being more cost-effective for employers, especially as hybrid and remote work models continue to hold strong.  The advantages of digital rewards are evidenced by the surge in the sale of virtual gift cards for business use. According to the Gift Card and Voucher Association, almost 60% of the B2B gift card market is in digital or virtual gift cards, whereas a mere 6 years ago it was only 20%.

Instant Gratification and Flexibility

Alongside the ease of giving a virtual gift when people are not in the office, digital rewards give more freedom to people in spending their reward on what they want, whether that is luxury purchases or household expenditures. 

Promoting Wellbeing

Digital rewards can also be used for an individual’s wellbeing; for instance, Spas.ie, our wellness partner at OptionsCard.ie, provides gift vouchers that are accepted in 75 spa experiences across Ireland.

Supporting Sustainability

A digital reward – as opposed to older reward methods – can also highlight the company’s commitment to sustainability by reducing the plastic and carbon footprint involved in producing physical gift cards. Research by the NatWest Group in 2023 highlighted that over 76 million payment, loyalty and gift cards, which equates to 380 tonnes of plastic, ended up in UK landfills in the previous five years – so going digital helps to reduce that.

Digital rewards also fall under the Revenue Commissioners’ Small Benefit Exemption scheme, which is increasing in January 2025 from €1,000 to €1,500.

Maximising Tax-Free Rewards

How does this translate in reality? Essentially, come January, an employer can give up to a combined total of €1,500 in up to five payments per employee per annum in gift cards, free of any tax, PRSI, and USC charge. Not only is this a positive for the employer, but employees gain from this as well as they get the full value of a gift, which can boost positive workplace attitude.

It is clear that remote work environments are here to stay. A 2024 Hays Ireland survey highlighted that 41% of professionals work in a hybrid model, while 25% of Irish employees work remotely. 

Boosting Employee Morale with Digital Rewards

Tapping into the world of digital rewards is an extremely worthwhile area for businesses looking not only to reward their current employees but also to boost company morale in the future – whether working in the office or remotely.