With the best talent in high demand, businesses are turning to creative solutions to hire and retain productive employees. As these businesses look for innovative incentives, their employees are pointing to a simple yet highly effective solution: gift cards.
There’s a reason why gift cards are a mainstay in our wallets and the preferred gift every holiday season: people love the convenience and flexibility they offer. Whether a business wants to distribute a year-end gift to its employees or is looking to show appreciation throughout the year, gift cards give the recipient the freedom to purchase what they truly want.
According to a recent Gift Card Gauge survey from Fiserv, 80 percent of employees say they prefer receiving gift cards over other forms of noncash incentives. In addition, 61 percent of employees say their company uses gifts and incentives to reward employees for a strong job performance. Here are a few reasons why:
Incentives Across the Employment Lifecycle
For employees, incentive programs are nothing new. If anything, incentives are expected. To that end, according to the Gift Card Gauge survey, 91 percent of employees indicated they received at least one gift or incentive from their employer in the last year.
It’s important for any business to consider the impact that well-thought incentives can have throughout the employee lifecycle. When employees evaluate potential employers, 35 percent say they see incentives as an important factor. Recognizing employee contributions also enhances corporate reputation, attracting new hires and incentivizing current employees to stay. A whopping 85 percent of employees say receiving gifts and incentives makes them feel like a valued member of the company, and 30 percent say employee incentives can motivate them to stay in their current position.
The Preferred Incentive
Employees have strong preferences when it comes to the incentives they receive. For years, employers would invest in physical gifts as tokens of appreciation, such as a company-branded mug, a recognition plaque, or a fruit basket during the holiday season. The problem became these gifts didn’t return value back to the employee, could feel impersonal, and often went unused.
One of the primary benefits of gift cards is that they give employees the freedom to buy the things they like, not what others might think they want. Among employees that think gift cards make great incentives, 77 percent indicate they prefer gift cards because they allow them to make their own purchasing decisions. And, when it comes to returning value to employees, four out of five employees say they prefer receiving gift cards over alternative noncash incentives, such as event tickets, FSA/HSA contributions, and gym/spa memberships.
A Personalized Touch
Personalization goes a long way no matter the budget. Through digital delivery platforms, businesses can personalize gift cards at the point of delivery. This includes gift cards that can be sent with audio or video, integrated with text messages, or even delivered at a specific moment in time (such as during a celebratory event or to sync with a career milestone). With employees often based across multiple locations and even working remotely, delivering incentives digitally simplifies incentive distribution for businesses while maximizing personalization.
In today’s competitive employment environment, businesses must show that they value employees. As businesses consider strengthening their incentive and rewards programs in 2024, gift cards can become a go-to for motivating teams, raising productivity and, most importantly, strengthening employer brand loyalty.
Sam Lituchy is vice president and head of gift solutions at Fiserv, a leading global provider of payments and financial services technology solutions.
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