GiftCard Partners Blog

Another study out this week, by the Incentive Research Foundation shows again, what the GCP team has known for years, cash incentives are not always the most effective.  According to this new research non-cash incentives such as merchandise, travel, and gift cards prove more effective than cash rewards.  Employees find them to be more valuable.  They drive more competition in today's tough economy, and are viewed as a special treat, rather than cash that could be spent on bills, or groceries.  Non-cash incentives must be used for a special occasion, whether it is a trip, or "free" merchandise purchased through a gift card. The trophy value of gift cards and other non-cash incentives is also important in today's economy.  No one wants to lose their job, or feel as though their job is in danger, these kinds of incentives serve as better reinforcement of behavior than cash.  Employees take more notice of other employees receiving non-cash incentives, rather than a check that is often included in an employees regular paycheck.   So when beginning to think about end of quarter, or end of year bonuses and rewards, think outside the "cash box."  
For more information on the Incentive Research Foundation study click here.

Employers are now finding ways to punish employees for unhealthy behavior.  Increasingly, employers are holding their employees responsible.  Instead of blindly providing health insurance to all employees on the same level, regardless of their health, employers are giving one kind of insurance to healthy employees, and a less desirable package to less healthy employees.  Deductibles are higher for employees who are over weight, who smoke, or who have other conditions that result from unhealthy behavior.  Employees can avoid this cost by participating in wellness programs, provided by the employer, but if they choose not to, they face the insurance increase. Some workers rights groups find these practices coercive, and unfair.  Opposition to these kinds of insurance programs stem from the fact that often, it cannot be proven exactly how much more a less healthy person costs a company, than someone who is healthy and in good shape.  At GiftCard Partners we believe that a Carrot Vs. the Stick approach, which offers rewards and incentives for good behavior, is far better than outcasting and punishing employees.  Although these practices promote a healthy lifestyle, is it fair to essentially reduce an employees paycheck when the company cannot tell exactly how much more that person is costing them?  
For more information read the full Chicago Sun-Times article If you have an opinion on these programs, or your company runs a program similar to this, leave us a comment.

The Prepaid Press recently published
Employers Find Ways to Say ‘Thank You’ to Employees; Prepaid cards Increasing as Incentive of Choice which highlighted Young America’s recent research regarding prepaid cards (such as gift cards) gaining even more popularity amongst corporate HR incentive programs. With company-wide salary freezes and abandoned bonuses, employers are struggling more than ever to retain their best employees. “…employers who want to retain their best employees admit they have fewer resources to do so, and many are turning to structured incentive programs, which cost less than salary increases and often result in high levels of employee productivity, positive feedback and loyalty," said Joe Custer, president of Young America. A few highlights of the survey findings:

Canadian small businesses are choosing people over profits, as consumers face the rising prices of everything from food, to gas, and even insurance.  Business owners are saying that they would rather absorb those costs through their businesses, than pass the financial burden on to their employees.  According to the American Express Small Business Monitor small businesses react to uncertain economic times by favoring long term employee and customer loyalty over short term economic gain.  Businesses see their employees as the most important asset to the company, over monetary revenue. Do you think this attitude could or does translate to small business behavior in the United States? Do you feel that the economic climate in Canada is different enough from the United States that small businesses can afford to make a larger investment in their employees? The GCP team found this article particularly intriguing, and are interested in your opinions on this issue, feel free to leave us a comment or tweet us @giftcardpartner.  Looking forward to hearing your thoughts!   For more information check out this
Financial Post article

This blog is in no way meant to be alarmist. I grew up on the coast of RI; I know how ocean-side communities fear hurricanes. This blog is meant to highlight a use of gift cards that we’ve seen repeated in several places, including our recent Summer 2011 Gift Card Usage Survey (results to come) and this story, from Naples FL. Blood drives are so important to maintaining the critical and highly perishable supply of blood that is needed to support the victims of natural disasters, in addition to the normal supply required. A recent NY participant in GiftCard Partners’ survey shared that they use gift cards to keep their most loyal donors and supporters engaged with them and to positively impact their blood giving experience, frequency and long term supporter status. In my opinion; this is how to rally help for friends and neighbors... from
www.naplesnews.com: “The blood center will offer $10 gas cards and the chance to meet former Miami Dolphins defensive star, Kim Bokamper. Successful donors will also receive a $5 Patric’s Restaurant gift card and gift cards from Sylvan Learning Center, Sugar Palm Café Bakery & Sports Clips while supplies last. Event participants will have the opportunity to win the following grand prize drawings: one of two pairs of Tampa Bay Rays game tickets, one of three pairs of Fort Myers Miracle Baseball tickets, a 10-passenger sightseeing cruise from Cruise Naples and one of 3 three $50 gift cards courtesy of Lu Lu Belle Children’s Boutique. Plus, visitors can enter to win the blood center’s summer grand prize drawing of 4 adult two-day Busch Gardens admission passes and lodging from Wingate by Windham. Visit
www.givebloodcbc.org or call 239-436-5455 for more information.” Gift cards are a great way to inspire and incent people to take part in such a critical campaign.
Read the full report and blood donor offer here.