We all know it is important for employers to show employees how much they appreciate them; thanking them for their hard work and loyalty while gearing them up for the challenges and opportunities of the next quarter.
But what is the best reward to give them to keep them motivated and engaged throughout the year? Cash seems like the obvious answer, enabling employees to spend their reward on whatever they choose. But is this always the best option?
Well, perhaps not. Cash incentives and bonuses often get swallowed up by personal bills or get added to an employees’ salary and therefore go unnoticed. In turn, this can leave employees feeling disengaged and undervalued.
A retail gift card on the other hand can provide an instant acknowledgement of a job well done when the employee is given the card.
Secondly, when the employee goes to spend the gift card, they are likely to have to go outside their daily routine to spend it, reminding them of why they received it in the first place.
Thirdly, it subsequently gives the person spending the gift card some sort of memory or positive association between the reward and their employer.
Selecting the right gift card to award to employees is a key part of the process.
Supermarket gift cards have grown in popularity as a staff reward, perhaps due to the tough financial climate of the last few years? On one hand, a supermarket gift card can be used to help the family budget work harder and stretch further when spent on food for family get-togethers and daily essentials.
Alternatively, recipients can treat themselves to larger-ticket items like a bottle of champagne or perhaps even a new iPad or television, giving the employee, which can create a positive association with their employer.
Positive memories
Experiential and ethical gift cards are also growing in popularity, enabling employees to make the most of their precious spare time or feel like they are making a difference. The long-lasting benefit of using a gift card in this way, is that employees will always associate the memory of the experience day or item they buy with their employer. Such associations can be so important to staff morale and motivation.
Budget savings
Another advantage of awarding gift cards over cash is that employers can also make savings by bulk buying cards. Most suppliers offer substantial discounts when buying a high volume of gift cards, which means that these can work out cheaper than giving the cash equivalent. This is an attractive prospect in the current financial climate when budgets are tight.
Gift cards are also easy to administer and take delivery of. They can be reloaded remotely, allowing them to be sent out without any value on them, guarding against theft and avoiding secure delivery charges for employers. This function also means that additional rewards can be topped up remotely by the provider, as and when the employer wants to issue a reward.
Other advantages include the management of gift cards by employees, who can often manage their cards online, for example checking their balance or transaction history, with the ability to cancel their cards if these are lost or stolen.
Cash may seem like the obvious staff reward and there will always be an employee who would prefer to receive cash as an incentive. However, there is evidence to suggest that gift cards are a more effective method for year-round staff reward. These help to create a memory or positive association between the reward and the employer and it is this association that really helps to engage and motivate staff for the year ahead, which is the ultimate goal of a reward programme.
Author TBC
