Gift Cards for employees is simply a wonderful idea. The gift cards allow your team to actually get a gift that they want and, unlike cash, gift cards can avoid taxation if done right. Please talk to your accountant about the tax issues around gift cards.
People often have two personalities, one at work and one at home/play. If you want to give a gift to your team that they really are going to appreciate, make it a gift card. You may not know what the person wants because they are showing you their 'work' personality. By giving a gift card they can buy the gift for their real self!
Also, as an employer, you really don't want to be too personal in your gift giving. Being too personal simply risks being inappropriate, give a gift card from a great retailer like Nordstrom or Amazon.com and everyone is set to win.
Added on 05/01/2010
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