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Pros: The closest thing to cold, hard cash, gift cards are a more personal way to give employees spending flexibility, Scully pointed out. Plus, it has more impact than putting a cash bonus into a paycheck, which is subject to taxation and frankly, the meaning can get lost on payday.
Cons: Again, not too many with this choice. However, in a recent program Scully did where the gift cards she gave out that applied discounts to a selection of local restaurants, she noted that there were a few more steps for redemption than she liked. Employees had to go online and search for an eatery, “work” which might have lessened its impact.
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