GiftCard Partners Blog

Thinking you can’t afford an employee incentive and rewards program? Incentives don’t have to be expensive and you can pair them with the financial needs of your employees. A recent study from researchers at California Institute of Technology (Caltech) suggests that employees could “choke” if the stakes or rewards are high. They  liken this performance phenomenon to a sports event in which people become afraid of losing their reward. “It is a somewhat unexpected conclusion. After all, you would think that the more people are paid, the harder they will work, and the better they will do their jobs -- until they reach the limits of their skills”, states Science Daily. However, these researchers have found that the more that is at risk, the more performance could be hindered, therefore demotivating and working against larger company goals. Digging deeper, their  research also revealed that “performance improved as the incentives increased -- but only when the cash reward amounts were at the low end of the spectrum. Once the rewards passed a certain threshold, which depended on the individual, performance began to fall off.” This speaks volumes about “knowing thy employee”. Interesting science that is easily parleyed into the concept of providing more incentives, in smaller amounts, like gift cards. Gift cards can be purchased in bulk in any increment, but cards like
SUBWAY,
Boston Market, and
CVS at $20 or $30 per gift card offers your employees small incentives that they can really use. They will grab lunch on the way to their summer destinations, bring dinner home for the family and stock up on sunscreen and first aid for the season. Source:
ScienceDaily Online – Science News

As the summer months approach, many employees seek flexibility and perks that align with the season. Companies can capitalize on this opportunity to boost morale, productivity, and loyalty by offering targeted benefits. Here are some key insights and recent statistics on what employees value during the summer and how to implement effective reward strategies.

Open and honest communication in the workplace is essential for building trust, increasing productivity, and improving employee morale. When employees feel comfortable sharing their thoughts and concerns, companies can address issues proactively and foster a culture of transparency. According to a 2023 study by McKinsey, companies with strong communication strategies are 3.5 times more likely to outperform their competitors.

Using carrot rewards, which reward employees for desired behavior, have been proven effective in rewarding employees in a number of ways. Carrots can be used in health and wellness programs to reward employees for reaching goals, they can be used as spot rewards, to reward employees on the spot for desired behavior, but carrots are most traditionally used as milestone rewards. Rewarding employees for long-term commitment to their organization goes a long way. Whether it is a gift card on their one year anniversary, extra vacation time after 5 years, or a watch after 10 years, recognizing employees efforts, commitment and sacrifice over time is crucial. It both recognizes the employee's contribution, and shows the employee that their organization will continue to support and recognize them. When employees feel noticed and supported their productivity goes up, their commitment extends, and they become more content in their jobs and their workplace. Dangling carrots may help boost retention rates and keep employees content for longer.
For more information on using carrot rewards to improve employee retention check out this article from Daily News and Analysis.

Employee loyalty is at the lowest rates in recent memory. According to a recent CareerBuilder survey one in three currently employed individuals plans to leave their job by the end of the year. 76% of current employed people would leave their job if the right opportunity presented itself, although they are not actively looking for a new job. Other studies have also shown staggering turn-over rates, showing that the average company loses 20-50% of its workforce each year. These numbers show employees are disconnected to their jobs, and that employers are not showing reciprocal loyalty to their workers. As the recession still continues to affect the economy and the job market employees see down-sized benefits packages, cut backs on organizational spending that was previously invested in professional growth and training opportunities, and a lack of demonstrated commitment to employees.  Employee loyalty has declined, because if employees don't feel that their organization has invested in them, they will not invest their longterm professional commitment in the organization. Investing in employees, whether it is giving a small denomination restaurant gift card for a one year anniversary, or ensuring that employees continue learning and growing through professional development training, it is important to show employees that their organization cares about them.
How will you use loyalty rewards to improve your retention rate this year? For more information and ideas on how to show loyalty to your employees check out this Forbes article.