YOUGotaGift has outlined the different roles that perks, benefits and rewards play in an employee offering. Its March 19, 2024 guide argues that employers should define the purpose of each rather than treating all extras beyond salary as interchangeable.

The company describes perks as discretionary additions intended to improve the day-to-day experience of work. Benefits occupy a broader role in employees’ lives, supporting areas such as health, wellbeing and the balance between work and personal responsibilities.

Rewards, in its framework, recognize an achievement, contribution or occasion. Examples include gift cards, cash awards, development opportunities and a personal thank-you. Their connection to a particular event or accomplishment distinguishes them from an ongoing benefit available as part of employment.

The guide cites Blackhawk Network research indicating a gap between interest in gift card rewards and actual receipt: 41% of employees preferred a gift card, while 15% received one. YOUGotaGift uses that comparison to argue for considering what employees want when selecting a recognition reward.

Its broader recommendation is to use the three approaches together, with a clear reason for each offering. A discretionary perk can improve the working environment, a benefit can support longer-term needs, and a reward can make an individual contribution visible.