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.
Google Wallet, gaining steam, revolutionizing payment
It's baack, we have blogged about it before, but now it walks among us, so it seems time to revisit Google Wallet. It is the first smart phone app, only available on a very select few smart phone models, that allows you to complete payment transactions using your phone, instead of a credit card, or the prehistoric form of payment, cash. Google wallet is revolutionizing commerce, and how people recieve rewards. Imagine how easy it would be for a company running a health and wellness program to simply place electronic CVS/Pharmacy gift cards in their employees' Google Wallet accounts, instead of going through the hassle of ordering physical cards, and having to have the cards activated. As revolutionizing as Google Wallet could be, it will still take time to catch on. For one, it is not yet widely available, and it would be a bit of a stretch to say that people will switch cell phones, or even carriers for this technology. Additionally, it remains to be seen how many consumers will actually use the technology, given that a wide margin have expressed discomfort in using mobile technology for financial purposes, give the possibilities of identity theft and hacking. Google Wallet will revolutionize commerce, and the face of the gift card industry, just not immediately.
For more information on Google Wallet, from someone who has actually tested the technology, click here
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:
Multi-Channel Retailers, Gift Cards, and Profit Margins
The number of consumers shopping across multiple channels is expanding while retailers everywhere face margin challenges and an uncertain economy. Consumers will seek information both on-line, and through mobile technology but will only shop in the most convenient channel. Multi-channel retail has become theexpectation (and a competitive advantage). This strategy allows the company to be everywhere the consumer is shopping, and lowers the risk the shopper will inquire at their outlet, and spend their money elsewhere. The difficult part of multi-channel retail is making the transition and keeping up with the consumer trends. How are multi-channel retailers reacting to this change in consumer shopping?
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.
