Gift cards
remain the most popular employee award to use in incentive and recognition
programs. Not only are they most sought
by the employees themselves, over 75% of industry professional rated them as effective
or extremely effective awards.
Following
are other interesting points from the 2020 research recently completed by
Incentive Magazine:
- 55% of the companies surveyed use the physical cards, while 39% used both physical and electronic.
- Gift cards are most often used by companies for sales incentives (55%) followed by business gift (49%) service awards (46%) and employee recognition and engagement (45%)
- About 2/3 of the companies purchase their gift cards directly from the retail brand, while 1/3 from incentive suppliers or gift card resellers
Company
Budgets
|
Ave Spend Per Participant
|
% Spent
|
|
Less than $25
|
10%
|
|
$25 to $49
|
20%
|
|
$50 to $99
|
18%
|
|
$100 to $149
|
16%
|
|
$150 to $199
|
5%
|
|
$200 to $499
|
15%
|
|
$500 to $999
|
8%
|
|
More than $1000
|
8%
|
|
Compared
to Cash Awards
|
%
|
|
Equally as Effective
|
39%
|
|
Less Effective
|
9%
|
|
More Effective
|
29%
|
|
Do Not Use Cash
|
20%
|
|
Not Sure
|
3%
|
|
Compared
to Gifts
|
%
|
|
More Effective
|
59%
|
|
Equally Effective
|
28%
|
|
No Not Use Gifts
|
5%
|
|
Less Effective
|
5%
|
|
Not Sure
|
3%
|
While many
companies still purchase individual brands directly from the retailers, studies
have shown that when your employees are given the option, most would rather
choose which gift cards they want.
