Believe it or not, the latest market research conducted
by Incentive Magazine showed that close to 40% of all Years of Service programs
use gift cards as some of their award options.
It wasn’t too long ago that you would never see gift
cards in employee anniversary programs for several reasons. First, the major recognition companies spent
millions of dollars marketing their traditional awards such as company
identified jewelry items, crystal, clocks, watches and the like. Second they used very sophisticated training
programs for their sales forces as well as for clients building a mystique that
only deluxe trophy type merchandise would be proper to recognize an employee
who remained at a company for a period of time usually in 5 year cycles starting at 1, 3, or 5 years. And lastly, they created excellent software
platforms that made is very easy for a client to purchase a turnkey employee
service award program.
So what changed?
How did gift cards start to become an option in these programs? It certainly wasn’t because the companies
that specialized in gift card systems spent millions in advertising, or
marketing or a sales force that was trained to call on the clients. And it
wasn’t because they built sophisticated electronic platforms to implement
them. It came about because clients were
getting tired of paying very hefty premiums over retail price for these traditional trophy type items and hearing from employees that they were tired of being told an item as valued at $500, but they could see it every day online for a lot less. Employees simply wanted more choice at a better value.
With the age of the internet anyone could do a quick
search to determine the value of an award, it didn’t take long for the
employees to ask why the award that they understood cost $250 or $500 actually
had a value of only $125 or $250. That
was the rule rather than the exception.
Gift cards are a part of Years of Service programs
because it gives your employees what
they want without incremental cost to you. If you are going to spend $250 or $500 on an
award, wouldn’t it make sense to make sure that your employee receives as much
of that budget as possible? The
traditional recognition companies will fight long and hard to keep you from
putting gift cards in your program. They
know that once in, they will lose prized profit dollars year after year. But do you really want to support their Taj Mahal
corporate offices at the expense of your employees?
If you would be interested in how to use our gift card
systems in your employees years of service programs please contact us at
ultimatechoiceinfo@cox.net.