Executive
responses to a recent Incentive Federation study on employee incentives showed
that merchandise and travel are more compelling than cash as employee
awards. And specifically in the
merchandise category gift cards were the most popular awards.
The reasons
most incentive planners feel why gift cards are more effective were listed as:
1. Trophy
value: Gift card purchases are more memorable – they create a lasting reminder
of achievement.
2. Viral
value: Employees tell each other how they redeemed gift cards.
3. More
discrete: It’s polite to mention non-cash awards.
4. True gift
perception: Gift cards are not viewed as part of compensation.
5. Universal
benefits: Gift cards combine the benefits of merchandise with the benefits of
cash.
6. Guilt-free
spending: Recipients don’t feel guilty treating themselves.
7. More
likely to improve work performance: Studies show that cash doesn’t improve work
performance – gift cards do.
8. Family
support: Because the participant’s family is involved in selecting awards –
they’re more likely to support the participant’s goals.
9. Pleasing
loved ones: There is a strong motivation to earn an award for one’s significant
other
10. Long-term
positive feelings toward organization: Gift cards reinforce positive
associations with sponsoring organizations.
To review the entire research click here.
