In the world of HR, finding the perfect employee rewards can be quite the challenge, whether it's during the holiday season, to celebrate work anniversaries, or to acknowledge outstanding performance. But remember, the right gift matters more than you might think! According to a study by Runa, a staggering 68% of respondents believe that a well-chosen gift can significantly boost their loyalty to their current employer.
Before you hastily commit to uninspiring corporate gifts like an ill-fitting t-shirt or another coffee mug, let's delve into what truly motivates your workforce and why you should consider incorporating gift cards into your corporate-reward and incentive programs.
Why reward employees with corporate gifts?
1. Demonstrating employee appreciation: Employees yearn for recognition, whether it's through shout-outs in all-hands meetings, kudos in one-on-one sessions, or tangible rewards like elevated titles, new offices, or exciting assignments. Recognition signals to employees that they are seen and valued, a crucial factor in the wake of 2021's Great Resignation and the phenomenon of "quiet quitting" in 2022. Employers are faced with a choice: invest in talent retention or watch their employees walk away.
2. Strengthening Company Culture: Adequate recognition fosters a deeper connection between employees and their organization's culture. Recognizing individual or team efforts reinforces the idea that their actions are appreciated and cherished by the company. This, in turn, helps to shape and strengthen the company's culture, as other employees take note and start emulating these commendable behaviours. According to Gallup, employees who are emotionally fulfilled through appreciation and acknowledgment tend to develop a sense of loyalty and become brand ambassadors, ultimately enhancing the organization's reputation and attracting new talent. Recognition programs do wonders for building and reinforcing company culture, both internally and externally.
3. Gift Cards vs. Cash: While financial rewards are undoubtedly important, they aren't the sole motivator for employees. The concept of "Mental Accounting" explains how people compartmentalise income and spending into various mental accounts. Cash rewards typically get classified with salary and are allocated towards essentials such as rent, mortgage and bills. It isn't exactly 'rewarding’. Surprisingly, despite frequent suggestions for cash as a desirable reward, data suggests that its impact can be somewhat muted.
As it turns out, most people aren't driven to improve their performance if they mentally allocate that money to mundane expenses. On the other hand, great gifts carry more weight because they are mentally linked to something enjoyable, memorable, and rewarding. This is why people tend to derive more satisfaction from non-cash gifts than cash equivalents. For instance, a gift card from Endota Spa feels like a guilt-free indulgence rather than a frivolous expense.
Why gift cards are the top choice
Guilt-free pleasure: Gift cards are associated with celebration and enjoyment, motivating employees to work harder to earn them. Numerous studies have consistently demonstrated that individuals incentivised by desirable non-cash rewards outperform those incentivised by cash equivalents.
Memorable purchases: Gift card purchases serve as ongoing reminders of success and your company's appreciation. Even one-time experiences create lasting memories that are positively associated with the employer who made them possible. In contrast, cash awards often lead to unmemorable or intangible spending, as revealed by a survey by Wirthlin Worldwide.
More choice: Gift cards offer a personalised touch, allowing employees to choose what resonates with them most. It's no surprise that they've been the most-requested gift by the National Retail Federation for 15 consecutive years.
Ease for HR: from EOFY to Christmas, HR teams face the almost impossible conundrum of selecting a single gift that caters to employees with diverse backgrounds, interests, and priorities. Gift cards alleviate this burden, offering a flexible solution.
In addition to bringing joy to recipients, gift cards also lighten the load on your HR team. With True Rewards, the ability to bulk order and schedule delivery in advance from our extensive card catalogue, you'll find that giving can be just as rewarding as receiving.
Are you ready to surprise and delight your employees with digital gift cards from their favourite brands? Get in touch with our experts today!
Choose rewards that truly inspire, retain, and motivate your valuable employees. Let's make sure they feel appreciated and engaged like never before.