Are you searching “Gift Card Incentives For Employees” while looking for information about incentive programs? PromoGroup has been in the business of helping corporations build incentive programs for years and knows the best ways to help corporations make the most out of incentive programs. Offering employees an incentive to bring their “A game” helps businesses provide better customer service and achieve more as a team. Gift cards simply beat alternative incentives such as cash.
Gift cards are the #1 choice for corporations that use incentives for their employees. A study conducted by the Incentive Federation found that executive respondents consistently indicated that merchandise incentives were more effective and compelling than cash. About 75% of participants that responded to the study said that they knew they could build more memorable and exciting incentive programs using gift cards compared to simply giving cash.
How Do Corporations Use Gift Cards?
Different organizations have different functions and even within companies people hold different roles but still can be incentivized with gift cards. These are some of the ways that gift cards are used to incentivize staff:
- Recognize exceptional performance
- Motivate to achieve higher sales
- Send as a gift to other businesses
- Recognize non sales achievements
- Given as a spot award
- Used for customer promotions
- Given for following safety protocols
- Used for dealer incentives
- For participating in wellness programs
- To open or nourish business partnerships
Gift Cards Are Remembered Longer
We handle, use, and spend cash as part of our daily lives; gift cards are something most people only get during the holidays or maybe a birthday. They are more memorable because they stand out as a tangible reward. Gift cards are also used to buy targeted merchandise that is used for special events, weekends, or purchases. Cash can be used on anything, and many times is spent without occasion buying necessities like a tank of gas. Ham gift cards buy a delicious hams which create a special occasions and memories for the recipients.
10 Reasons Gift Cards Beat Cash
Cash might be fine in birthday cards but it isn’t nearly as memorable as receiving a gift card that opens up new doors, gives a special gift, and lasts longer in the memories of the recipient.
- Trophy Value: When used the purchases are more memorable, employees remember the achievement.
- Viral Value: When people achieve they like to show and tell, this means others will want to participate too.
- More Discrete: Offering cash can feel a bit brash, gift cards are a more polite way to incentivize your staff.
- Real Gift Perception: Cash feels like just adding to an hourly rate or salary. Gift cards are completely on top of other remuneration.
- Universal Benefit: Gift cards give a gift to the employee through getting merchandise they want with the ease of using a card to get it.
- Zero Guilt Spending: When cash is given it can feel like it should go towards monthly expenses, gift cards allow employees to treat themselves.
- More Effective in Motivating: Simply stated studies have shown that cash incentives aren’t as compelling as gift cards in encouraging employees to go the extra mile.
- Sharing Reward With Family: When gift cards are given it also benefits the families of employees as the items they buy can be shared with households and are a special occasion, not just a few extra dollars.
- Longer Term Impact: Research shows that gift cards are better remembered by employees which means the positive effect of the reward lasts longer and works better than cash.
Making Gift Card Incentive Programs Effective
Gift card incentive programs work better when the goals are clear and explaining how the program works, and what the incentives are will make your program a success. Here are some ideas about how to make your gift card program work for you.
Lay out the program:
Explain what the objectives, goals, or how the gift cards will be earned. It is important to explain how performance will be tracked so employees understand that their efforts count and will be noted. It is also important to let them know how and when the reward will be given.
Have a meeting:
Make the start of your program an event at your national, regional, or local level so people know when it starts and get excited. Management can use the meeting as a powerful kickoff for the program to get staff excited and start them working towards rewards.
Use a newsletter:
As your program progresses send out a newsletter or post a tracker that shows how people are doing and who’s won. It helps recognize the winners and motivates other employees to achieve the rewards too. Especially when they see that it is possible.
Follow up with letters:
Letters to both people who won and people who didn’t can be a way to congratulate winners and thank all participants for their extra efforts during the program.
Award gift cards publicly:
Make an event of handing out an award when it is earned. Employees like to be recognized for their exceptional efforts and it can motivate other employees by seeing people win and wanting it for themselves.