The scene has been set with candlelight and red roses.
This is a favourite analogy at HW Holdsworth we like to use when comparing a physical gift to a gift card. How different would that gesture of commitment be if the little box revealed a gift card, albeit to the value of the diamond ring?
Gift cards are an emerging trend in recognition awards, and some of our clients partner with us to supply gift cards as long service recognition. We had a theory as to how these gift cards were spent, and so crunched some numbers.
Here are the results:
To fairly compare long service recognition gifts with gift cards for the same purpose, we thought we should first look at the aims we are trying to achieve with the award process.
Physical gift: Feels symbolic and commemorative of a milestone — something to keep and display (e.g. quality watch, artwork, or tech item).
Gift card: Feels transactional — easily spent and forgotten, like a bonus or voucher.
A physical gift better represents the permanence and significance of long service than a spendable gift card.
Physical gift: Reflects a thoughtful gesture aligned with a people-first culture. Can be branded or chosen from a values-based catalog.
Gift card: May not reflect company values and doesn't convey the same care or symbolism.
A tangible item aligns more closely with a culture of thoughtful recognition and meaningful celebration.
Physical gift: Can be displayed, talked about, and remembered, deepening emotional impact.
Gift card: Once used, it’s gone — the positive feeling is fleeting.
A physical gift creates a longer-lasting emotional connection and sense of appreciation.
Physical gift: Sets a visible precedent — colleagues see the gesture and feel inspired to stay.
Gift card: No lasting impression; doesn't serve as a visible motivator to others.
A physical gift has social and symbolic value that helps reinforce retention more effectively.
Physical gift: Easier to celebrate and present at a ceremony or in photos; adds formality and occasion.
Gift card: Less appropriate for public presentation — lacks gravitas.
A physical gift lends itself to meaningful public recognition and celebratory moments.
Physical gift: Seen as a thoughtful gesture of high value, even if cost is similar.
Gift card: Can feel like “lazy” recognition or compensation, not appreciation.
A physical gift has a higher perceived value and reinforces your reputation as a great place to work.
Under FBT law:
Physical gifts are not only more meaningful — they can also be more tax-efficient.
|
Objective of Long Service Recognition Gift |
Gift Card |
Physical Gift (Chosen by Employee) |
HW Holdsworth Long Service Recognition Package |
Reflection on your organisation’s long service recognition process |
|
Recognise loyalty and commitment |
❌ No -Transactional, impermanent |
✅ Yes – Symbolic, commemorative |
✅ Yes - heritage pieces that become family heirlooms and may accrue value over time |
Do the current awards convey permanence and commitment? |
|
Reinforce organisational values |
❌ Less so -May reflect other values |
✅ Yes – Thoughtful reflecting people-first culture |
✅ Yes – customise your gift catalogue to reflect specific corporate values |
What corporate values does the current process reflect? |
|
Enhancing Morale and Engagement |
❌ Less so -Once it is used, it is gone |
✅ Yes – Halo effect: longer-lasting emotional connection |
✅ Yes – tangible, practical items that remind the user or wearer of their recognition |
Where is gift card value spent? |
|
Improving retention and reducing turnover |
❌ No -No lasting impression |
✅ Yes – Sets a visible precedent with social and symbolic value |
✅ Yes You can use our recognition budget ROI calculator to measure this. |
How lasting is the impact from our awards on retention? |
|
Public Acknowledgement and peer recognition |
❌ Less so -Lacks gravitas for public presentation |
✅ Yes – Adds formality and occasion |
✅ Yes – gifts are beautifully wrapped & we offer a range of corporate branded quality presentation options |
Do current awards present well? |
|
Supports employer brand and perceived value |
❌ Less so -May feel like “lazy” recognition, but may be valued as cash by some |
✅ Yes – Thoughtful gesture, higher perceived value |
✅ Yes – we can customise your gift range to reflect your brand, including industry-specific memorabilia |
Do current awards reinforce our brand? |
Reflect on your current long service recognition process. Download our audit checklist here.
Design your long service recognition gift policy to maximise tax efficiency
Consider carefully whether physical gifts or gift cards work better for your organisation – HW Holdsworth can help you offer a mix of these to gain the benefits of both types of gifts
Include other year-round recognition such as employee benefits to offer other types of recognition such as travel experiences or discounts that are not captured in long service recognition strategy, adding variety to your recognition programme.
So... back to that velvet box.
If you’ve ever proposed — or imagined doing so — you know it’s not just about the dollar value of the ring. It’s the meaning behind it. Long service recognition is a similar gesture. You’re saying: You matter. Your time here has value. You are appreciated.
A gift card might get spent on groceries or fuel. Useful? Absolutely. Memorable? Probably not.
But a physical gift — especially one that’s carefully chosen, beautifully wrapped, and visibly presented — says something different. It becomes a marker in time. A keepsake. A story.
So the next time you open that little box for a long-serving employee, ask yourself: will it spark joy... or just pay a bill?
Contact us to find out how you can offer a meaningful and personalised choice of long service gift to your employees to recognise their long service.