You may not have to break the bank to reward your employees this year
A new MarketWatch survey release this week indicates that employees don't need much to feel rewarded during this holiday season.
Another Piece of Evidence: Cash Not Always the Best Reward
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.
Saying Thank You to Employees (and…Hang In There)
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:
A Raise is No Longer a Sufficient Reward
Employees' satisfaction with their recognition is not truly measured by the company, but by the employee. And, although it is easy for companies to simply give employees recognition by giving a raise, employees are not satisfied with this outcome. Employees want more; they want to feel as though their employer cares about what they want for their efforts, not what the company is willing to give. The top five reward satisfaction points based on a recent poll were:
As Unemployment Drops, Employee Retention Becomes Crucial
This interesting Canadien article pointed out a seemingly obvious but interesting point. As unemployment rates drop employees gain an advantage over employers in terms of the job search. Employers find during these times of transition, when the unemployment rate is dropping and employees tend to start to look around the job market, that they need to ensure that their employees stay happy. How to keep employees happy? Incentive programs! A poll of 429 businesses found that more often than not, business owners count on employee incentive programs to draw and maintain motivated employees. Increased employee motivation is the top priority of 88% of respondents. Gift cards are an incredibly effective way to motivate your employees. They are easy to administer and use, they hold trophy value, and show true thought when given from employers to employees. How high on your priority list is employee motivation this year? How do you incent your employees?
For more information on employee motivation in the coming year click here.
