Reward programs are a quick and easy approach to boosting employee engagement.
People adore being appreciated. It promotes motivation, productivity, and organizational loyalty. Money-based appreciation can grow expensive fast. It may be why many small enterprises and startups avoid employee incentives. Is cash-based employee recognition valid? Exist better options? Incentive Research Foundation study:
44.07% of employees say gift cards are the "best rewards," while 27.12% say they're "excellent rewards."
Non-tangible prizes (like gift cards) are as successful as cash-based incentives, if not more. It boosted productivity and worker contentment. Let's examine why gift cards should be used more regularly as staff rewards.
Gift Card Categories
Many companies don't know how to start using gift cards as staff rewards. First and foremost, you must choose between an open-loop and a closed-loop gift card program for your employees.
Closed-loop gift cards work at one retailer or brand. A restaurant's gift cards are only redeemable at that restaurant or other locations.
Open-loop gift cards are usually Visa-branded. Unless limited, such cards can be used across brands. Closed looping cards limit employees' reward choices. Open looped cards allow employees to select how to use them. Open-loop systems make employees feel good about them being rewarded, in our opinion.
Gift cards in the employee reward program have 4 benefits.
Does your program have a defined incentive for high performers?
If so, reconsider.
People enjoy rewards, but it should be something they choose and aren't compelled to take. Gift cards let workers choose their rewards. It's more practical to let staff choose their rewards, and it increases enthusiasm. Gift cards can be readily added to a point system. Reward winners can save their points for the best price.
Allowing employees to choose rewards affects positive workplace behavior. Combining choice and redemption makes for a memorable experience.
Gift cards are the perfect employee reward because of their simplicity. Flexible gift cards. Gift cards cover any budget for a recognition program.
Gift cards simplify decision-making. Gift card purchasing, storage, and issuance are easy.
Digital gift cards require minimal or no storage, gift selection, shipping, or other complexity. As a result, it has also enabled management to follow "spot rewards" and not delay recognizing employees.
SOLI can help worldwide workforces by distributing gift cards. Thus, the procedure becomes fairer. Customizing a gift card with the company emblem and name makes it more personal.
An award is an extra money. It's probably paid, not acknowledgment. In contrast, gift cards help develop a trophy value, creating a lasting recall of the achievement.
Consider two "Employee of the Month" winners. X chooses a cash prize for everyday purchases. Y chooses a gift card. They rejoice with friends and tell their families. They celebrate and buy something special with a gift card.
Compare! Gift cards provide recipients with experience.
Memorability is one reason non-monetary rewards are better than cash. Rewarding yourself and making a purchase with the money you've earned is more important than the actual prize itself.
Gift cards can be used to treat employees on work anniversaries, birthdays, employee appreciation days, etc.
Cash incentives can make other team members feel inferior. It may damage teamwork or cause internal disagreements. It's considered rude to brag or ask about money. Non-cash awards may be easier to distribute with peers. Such dialogues develop teams and motivate without jealousy.
These successes can be publicized on social media to boost the company's reputation.
Here Are 4 Ways To Maximize The Benefits Of Using Gift Cards Within Your Reward And Recognition Program
Suppose you think gift cards are good staff rewards. Here are some ideas to make it more effective.
- Acknowledgement to boost morale
Reward the employee in front of peers. Thank them for their hard work and explain how the gift card would benefit them.
The organization benefits from your employees' accomplishments. Recognizing someone is receiving approval from someone they admire. When their supervisor appreciates them, it shows you care about them.
Include a handwritten note of thanks with the gift card. Thank the awardee. This will encourage future success.
Why not boost recognition? Internally and externally, publicize the employee's achievement. Any of the company's social media accounts or its website could be a potential source of information for customers.
- Open-loop gift cards
Closed-loop gift cards are simply another type of reward that you might provide. Open-loop gift cards offer more flexibility than closed-loop ones. Most brands accept open looped cards, giving staff more alternatives.
Without appreciation, an award is useless. A incentives and recognition program's success depends on both the incentive and its acknowledgment.
Gift cards are a terrific addition to your employee rewards program. But that can't be your only gauge of employee engagement.