Vouchers and physical gifts solve different problems, and the right choice usually comes down to how much you know about what your recipients actually want, and how fast you need the program to execute.
Vouchers win decisively on speed and logistics — digital delivery means no shipping, no stock risk, and no size or preference mismatch, which makes them the clear choice for very large, geographically spread headcounts or compressed timelines.
Physical gifts win on perceived effort and memorability. A thoughtfully chosen physical item signals that the company considered what recipients would value, which a voucher — however generous — doesn't convey in the same way. This matters more for client and leadership gifting than for large-scale employee rollouts.
A practical middle ground many companies use: vouchers for the broad employee base where speed and scale matter most, and a physical gift for the smaller leadership and client tier where the extra effort has more impact per recipient.