When a company has performed well in its industry it’s only right that individuals who were instrumental in this success are rewarded with incentives. This is in order to motivate the company’s staff to continue to perform effectively. Over the years companies have devised effective ways to reward their high-performing employees. With the availability of gift card companies now finally have a more effective and memorable way of rewarding employees and customers compared to cash.
In case you are in doubt, here are the top ten reasons why Gift card incentives are more effective than cash rewards.
1. GIFT CARD INCENTIVES ARE MORE MEMORABLY VALUABLE THAN CASH
Cash is what we work for to pay bills and make savings. So when employees get cash incentives all they see are the bills they can offset with it and how much of the money can be saved. Now in the case of Gift Cards, it’s more specific, the employee understands that it’s a gift. Something that would last longer than just bills paying cash. It could be a gift card voucher for electrical home appliances. One employee could get the steam iron they’ve always wanted. Every day the employee uses the steam iron will remind them of how much the company values him/her.
2. IT CREATES “TALKABILITY” IN THE OFFICE
Office environments will always have talkers and the steam iron could come up in one of their discussions. When employees are rewarded with gift cards instead of cash they most usually get their heart’s desire. This can create a ripple effect in the office when it comes up in discussions between colleagues.
3. GIFT CARD INCENTIVES IMPROVE EMPLOYEE PERFORMANCE
When gift card items come up in office discussions it has a way of creating healthy competition which will push other employees to step up in performance because … just maybe, Bola and Stephanie want a steam iron too. Actual research shows that workers are more motivated by gift card rewards than cash rewards.
4. IT COULD BE MORE COST-EFFECTIVE FOR THE COMPANY
Yes, Gift card incentives can be money-savers too! The phrase “it’s not what you say but how you say it” best describes this reason. Like we proved earlier, cash incentives are usually for bills and savings but Gift cards are specifically for gifts. A Lunch gift card voucher will be appreciated by the recipient as they can finally get what they always wanted to eat. But if given as cash, it will look too small to the recipient and he/she will definitely not appreciate it as much as getting free lunch.
5. IT GIVES THE RECIPIENT GENUINE FREEDOM TO SPEND ON THEMSELVES
Spending hard-earned cash is simply difficult for disciplined salary earners or sometimes even entrepreneurs. They rather save than blow the money on getting themselves an item they always wanted. If only there was something with monetary value other than cash we can give them. A gift card is that alternative that gives them the freedom to spend on themselves without spending money.
6. IT’S MERCHANDISE AND CASH IN ONE CARD
Let’s say it’s the end of the year and a company is rewarding its best customers. Instead of forcing merchandise on them or giving them cash, they can give them gift cards that will allow them to exchange it for their desired merchandise. In essence, Gift cards are a mixture of desired merchandise and cash value.
7. GIFT CARDS ARE GIFTS NOT COMPENSATIONS
Unlike cash incentives Gift cards are seen as gifts and not compensation. To the recipients, they are more like “thank you for being you” rather than “here is a payment for a job well done”. The way it is perceived makes it more appreciated than cash.
8. A GIFT CARD DOES NOT DROP IN VALUE
There will always be financial downtimes when cash flow isn’t as frequent as it used to be. If one has gift cards stashed somewhere they will be a lifesaver as they maintain the same value. Ideally, they do not expire till after 5 years but if not used within twelve months charges will be deducted from the card every month.
9. HELPS RECIPIENTS PROVIDE FOR LOVED ONES
When a customer or employee receives gift card rewards they can use them to get something for their loved ones, therefore, showing them they care. Unlike cash rewards which will rather be used to pay bills
10. CREATES POSITIVITY IN A COMPANY
Due to the fact that gift card rewards are more memorable than cash, it has the ability to keep a positive vibe in a company that uses it as a means of incentives. Remember the memorable steam iron that makes the employee happy whenever he uses it? Yeah, imagine every staff in the company has a gift card reward item at home that gives them that same feeling… positive vibe all the way.
So what are you waiting for, dear business owner? Stack up on gift cards to create memorable staff and customer experiences.