GiftCard Partners Blog

According to recent studies in the U.K., employees would rather be recognized for their professional accomplishments and have a solid benefits package then get paid a higher wage. Is it possible that our neighbors across the pond are on to something we can apply here? We can all agree that it feels great to get recognized by your boss for a job well done, almost more than getting that paycheck we all expect twice a month, however, could it be true that we might all pass up a raise for some good old fashion employee recognition. These numbers seem to indicate that if Americans are anything like Brits, we would:

Employee retention is a hot topic in a job market where there’s no such thing as a “company man” anymore, and changing positions every 2 years has become the norm. For employers, employee retention should be a top priority for any HR staff because frankly, new employees are expensive. Between onboarding, training, manager’s time lost, break in team rhythm and potential costs of signing bonuses, relocation or travel and new employee socialization taking on new employees are expensive. Check out the infographic below for a full breakdown of why making employee retention a priority can help keep your organization in the black for the back half of the year. Employee rewards programs can often fall victim to budget cuts, or not get approved at all due to lack of executive buy-in. However, make smaller investments in employee rewards like gift cards or extra time off can actually provide ROI, not only in the saved cost of employee retention but also in increased productivity and further employee motivation across your entire workforce. Positioning employee rewards programs as promoting employee retention, and even the “lesser of two evils” can help any executive see the benefits of employee retention vs. employee on-boarding. Thanks to 
SHRM.org for this great infographic on the ROI of Employee Retention

As we head into the 2024 holiday season, gift cards remain a significant part of retailers’ strategies. The industry has seen incredible growth over the years, and the trend is far from slowing down. With the global gift card market projected to reach over $1.4 trillion by 2027, retailers are paying closer attention to new trends that can enhance customer experience and drive sales during the busiest shopping season of the year.

A research group at University of Pennsylvania's Center for Health Incentives and Behavioral Economics and the Penn Medicine Center for Health Care Innovation is testing an interesting theory that uses the model of a basic employee rewards program. Since many patients stop taking their medication regularly within a year of having a heart attack, so the research group is experimenting with giving patients a small prize for taking their meds on time (complete with transmitter outfitted pill bottles to prevent dishonesty).
The theory behind the doctors' research is exactly the same concept used by employers to incentivize employees towards a desired behavior in the workplace. The rewards are not large, and are modeled around a lottery system. Each day you take your medication on time you earn the CHANCE to  win a small monetary prize, and if you don't open your medication for 2-4 days the researchers are notified via the transmitters on the bottle and have a social worker contact the participant. This translates directly to the workplace. For a job well done, a small reward is given to motivate repeat behavior, however if an employees is slacking or not delivering the quality or production the organization requires, it triggers a feedback point from the manager to get the employee back on track. Using rewards in these types of instances, whether with patients or employees, that have trophy value like gift cards or time off can have a longer lasting impact than cash. Cash can be used for practical applications like bills, rather than allowing employees to build a lasting memory of treating themselves to a meal at
The Cheesecake Factory, or a new outfit from
The Limited. Building these types of experiences will solicit a stronger desire to repeat the behavior.
For more information on the University of Pennsylvania study or the reward system in the study check out this article from the Wall Street Journal.

It's the ultimate question that marketers would love to have the answer to, how can retailers deliver winning strategies for their own loyalty programs?  Loyalty drives sales, today, tomorrow and in the future, but how does a retailer keep loyalty fresh? Currently, U.S. households participate in over 20 loyalty programs, but less than 10% are actively using their accounts. Retailers need to produce winning strategies to have a successful loyalty program.  Based on the existing loyal customer base, 37% of retailers believe that customer retention will be the #1 contributor to growth in the next 3 years.