Employee satisfaction plays a key role in lowering the attrition rate for companies. With employers constantly seeking new ways to show their appreciation to their workforce, flexible employee benefits(flexi-benefit) like meal cards for employees have emerged as a popular benefit scheme. It gives employees flexibility with their food choices and also allows them to reduce their tax liability. That is, meal cards offer a convenient option to give employees food allowance and also maximize their take-home salary.
If you are wondering how can flexible benefits motivate employees, this article is for you. We will discuss the advantages of meal card for employees both in motivating them and saving their money.
What is a meal card?
In simple words, a meal card is a voucher or a prepaid card issued by companies to give their employees a tax-free food allowance. Businesses can load prefixed meal amounts in the card, which employees can use to purchase food or drinks. Companies can collaborate with meal card organizations to get meal cards for employees that they can use to make digital payments. Employers can also provide corporate discounts at restaurants, cafes, and grocery stores through partnerships.
Meal cards are a hassle-free method for employees to choose whatever they want to eat. It frees them from the everyday struggle of preparing lunch and reaching the office on time. They mostly end up getting something fixed up quickly like precooked meals which are neither healthy nor filling. With a meal card, they can order food as per their preference.
How do meal cards work?
Meal cards are typically debit cards, but they can only be used to purchase food, drinks, and groceries at certain locations. They are based on a digital payment system and need preloaded funds to purchase items.
Employers decide on the amount that will be loaded onto the card as per the policies and seniority levels. Once they receive the meal card, employees can use them to purchase meals either by swiping or scanning the card at any POS machine. Some cards also have an extra layer of security through PIN authentication. Employees can also make purchases through online portals or apps following the same process as a debit or credit card.
Different types of meal cards
Meal cards for employees come in a variety of models. It is for the companies to decide which option suits their employees better. Some of the types of meal cards are listed below:
Prepaid cards
Employers can issue generic prepaid meal cards to their workforce, which can be used anywhere for purchasing food as long as it has a balance. These cards give greater flexibility and choices in terms of restaurants and meals. Companies can link some special discounts with select restaurants that employees can choose from.
Employer-issued cards
Companies could partner with a network of restaurants and food service providers. The food allowance that these companies issue will be limited to these select partners. While these types of meal cards allow exclusive offers, they can be used at specific locations with spending caps.
Restaurant cards
Sometimes employers use their in-house restaurants, cafes, or cafeteria to issue meal cards. That is, employees can only use their prepaid cards or coupons within the company premises. Although this may limit the choices employees can make, these meal cards ensure convenient access to lunch and other dining services.
Advantages of meal cards for employees
Unlike other benefits for employees, meal cards can be used every day, which makes them an attractive choice with employers wondering how can flexible benefits motivate employees. Below we compiled a list of the top benefits of meal cards for employees.
Convenient access to food
For most employees, preparing food for both breakfast and lunch is nothing short of a battle. They often have to make a compromise of skipping breakfast or making unhealthy choices for lunch. With meal cards, they can avoid the everyday hassle with the freedom to enjoy both the important meals of the day. They can order food with a seamless process, and have it delivered to them. The prepaid cards also eliminate the dependency on cash.
Tax advantages and money savings
Meal cards come with huge tax benefits for both employees and employers. This is an easy option for employees to offer their workforce a tax-free meal amount. Employees can save a minimum of over Rs 40,000 with some cards like the Zaggle SAVE meal card. Employees can also save significant costs in grocery shopping at supermarkets.
Employee satisfaction and positive reinforcement
Through meal cards for employees, companies can show their genuine care for their workforce and their wellbeing. It demonstrates that you value work-life balance and reinforces the need for healthy and nourishing meals. Through these subtle gestures, you can foster a positive culture at your workplace.
Better budgeting and controlled spending
With a preloaded amount of money in meal cards, employees can assume greater control over their food expenses. While meal cards give a variety of food choices, they also promote responsible budgeting and avoid overspending. Over time, employees will practice best practices to ensure better financial health.
Motivate your employees with meal cards for your business
Meal card offerings are seeing a significant rise within the corporate ecosystem as employers are scouting for exciting options to give employee benefits. Although paper-based vouchers were a rage some time ago, their popularity faded due to the rise of digital offerings.
With prepaid meal cards for employees, companies can not just stress the importance of nourishing food but also help in tax savings. Zaggle SAVE is a leading flexi-benefit card provider with a variety of features like customizable food categories, an employee food wallet, an intuitive dashboard, and more.
The Zaggle SAVE employee meal card provides a convenient and hassle-free way for employees to access a wide range of customizable food categories that suit their preferences and dietary needs. This type of meal card not only promotes a healthier lifestyle but also boosts employee morale and satisfaction, leading to increased productivity and motivation in the workplace.
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