Tuesday, November 17, 2020

Do Employee Merchandise Awards Cost So Much More than Gift Cards?

 


Actually that’s sort of a trick question; the actual cost of a merchandise item doesn’t cost more than the actual cost of a gift card.  If you spend $50 on one item and $50 on a gift card, you’ve spent the same amount.  Your budget hasn’t changed.  What is definitely true is that the value of a gift card can change appreciably depending on when and where you use it and be worth more than what you paid for it.  In fact, most of the gift cards given over the Holiday season are used to purchase merchandise items on sale after the holiday season…often when the value can be double or even triple depending on the item.

From a recognition planner’s viewpoint, gift cards will have the effect of increasing your budget, where merchandise can actually decrease it.  Merchandise award companies need to start to develop their list or catalogs of merchandise awards long before clients will ever be buying or redeeming for them.  They will maintain pricing for a certain period, but after that period they have been known to raise them to cover increased costs, and thus increasing budgets.  As merchandise awards are also burdened with shipping and handling to the individual, their pricing is already higher by between 10-15%.

Take advantage of natural market downward price pressure during several times of the year.  When you use gift cards it will have the effect of increasing your budget by 50% or more, without increasing your cost.

Tuesday, November 3, 2020

Gift Card Usage as Employee Awards





How and why did gift cards become the dominate employee award in corporations today?  First because they are ubiquitous and people of any age group or ethnicity love them, and two because they provide the best value and choice of any other award.  Following are some of the ways they are used and why incentive planners like them so much.

How Are They Used?

  • To recognize performance 70.2%
  • As sales incentives 48.6%
  • As business gifts 29.3%
  • As non-sales recognition awards 30.4%
  • As spot rewards 30.4%
  • As years of service awards 47.6%
  • For consumer promotions 14.9%
  • As safety awards 9.9% • As dealer incentives 9.4%
  • Wellness programs 6.6%
  • To start/maintain business relationship (referrals) 6.1%

 Why Do Incentive Planners Like Them?

  • Ease of administration
  • Broad audience appeal
  • Redemption & flexibility
  • Perceived value Cost effectiveness
  • Lasting appeal
  • Backend ROI Tracking

Click here for a one page flyer on our five delivery methods to use gift cards in your company.


Wednesday, October 21, 2020

Rewards and Recognition Will Positively Impact Employee Engagement

Over the last decade employee engagement levels have barely budged since Gallup started tracking them.  This flat result comes in spite of extensive research identifying the logical links between the engagement and organizational success.  Maybe more importantly, it comes in spite of the billions spent on motivational speakers, leadership gurus, coaching, engagement surveys, technology, communication, training, rewards and recognition.  So where have we gone wrong? 

The state of employee engagement today might be best described by using the hiking term “false summit.”  That’s the disappointment one feels when reaching the crest of a ridge, only to discover that the real summit looms high above.  The good news is that despite the apparent lack of progress, the path to significant improvement in employee engagement remains, as more and more executives have a greater appreciation of the role of engaged people.  

The Question Is Always How? 

In decades of working with clients in the incentive rewards and recognition industry, we know the easiest way to begin a strategic connection between employees and the engagement needed to deliver your brand promises is to implement the principles contained in the employee behavior model. Executives, especially in HR are aware of the principles that great psychologists such as Watson, Skinner, Maslow and Thorndyke taught.  But it seems that the traditional thinking surrounding behavior has been set aside in favor of new approaches of the consultants of today that permeate the C-Suite. Through decades of implementing successful employee award systems that followed the simple approach of the behavior model, we know you can produce results. 

Employee Recognition Will Produce Results 

If you design and implement the right employee award system you will definitely engage employees. You don’t have to make it any more complicated than that.  

The sense of a false summit comes from the fact that the industry is replete with gurus delivering leadership advice, various performance apps, wellness programs, feedback surveys, all types of rewards and recognition items, and other measures to engage employees. HR and related technology trade shows and conferences feature education topics and exhibits on all manner of ways to engage employees—and yet employee engagement levels remain stuck well below 50%.  Why? 

People come to work each day because you’ve provided a contract of income to get them there.  But this contract doesn’t necessarily motivate them to perform at their highest level once they are there.  That’s where the connection to improved performance by implementing a well-structured reward and recognition system should begin.  

Where Have All the Experts Gone? 

The Reward and Recognition Industry began employee engagement long before it was ever titled that.  The successful incentive rewards houses made large investments in expertise in all the facets of the behavior model, and gave that expertise away in order sell their commodities of merchandise and travel.  Those companies became the floor upon which the entire recognition and reward business was built.  But the industry has changed, the new companies didn’t bring the expertise and now merely sell the rewards as consequences to behavior without regard to the other behavior pieces.  Studies from the Incentive Research Foundation clearly show that the vast majority of companies never look at their award supplier as someone who can assist them in building a strategic connection with their employees.  We believe that’s the first place you should look. 

Some Problems Still Exist 

If you want to break the 50% engagement barrier, you need to think in terms of systems not silos.  When you entertain experts, who remain firmly planted in their own curriculum you will not be able to connect all the behavioral dots.  When was the last time you had a training company present measurement and feedback coupled with rewards as part of their solution? When was the last time you had a technology company present an app or IT solution which included communications, feedback analysis and rewards necessary to make it effective?  When was the last time you had a recognition or awards salesperson concerned about anything other than how many awards you needed and when?  

There is no one cure-all for employee engagement.  It has so many facets and levels that it is difficult for any company to achieve.  The ones that have it didn’t get there overnight, and are constantly tweaking the pieces.  We’ve watched companies grapple with how to begin and spend countless hours arguing over the important pieces that make up the foundation and how to start.  If you want to delve into the world of employee engagement, look through the lens of the behavior model and you’ll find the best way to build it for yourself. You’ll know what pieces you already have, which ones you do well and which ones are missing, and if they are working in unison to produce your desired results.

Tuesday, October 20, 2020

Getting More From Holiday Gift Card Awards


The holiday season is here again, and for those looking to thank their employees, channel sales teams or clients, gift cards remain a favorite option.

What are the advantages of using gift cards as holiday awards? 
  • Gift cards provide a real value and allow the recipient to get the merchandise item that they want, when they want it and from where they like to shop. 
  • During the holiday season and beyond there are a myriad of items that will be on sale.  The value of the card you give is actually expanded, often by double, when used for discount bargains.
  • From the buyer perspective, lead times on giving gift cards are far shorter than other merchandise items; you can get them quickly, often within 24 hours.he shipping cost of getting the cards to you is very small and doesn’t adversely affect your budget…almost 100% of the budget gets into the hands of those you want. 
  • You can get gift cards in almost any denomination that fits your needs, large of small.
  • You can get universal gift cards such as the Award of Choice that gives your award winner over 500 of the most popular brands to choose from.  You no longer have to agonize over what brand to use.  They will know what they want, let them have it. 
  • You can use electronic gift card awards such as instant Award of Choice where all you have to do is order a certificate online, send it to the recipient and they can in turn order the electronic card they want.  All this can be done in minutes.

Many buyers we’ve spoken to over the years don’t like gift cards because they think they are too impersonal (or don’t want the recipient to know what they actually spend.)  Unless you plan to buy a specific different item for each recipient, at least 50% of what you give won’t hit the mark, and won’t be personal at all.  And with the ease of comparison shopping online, figuring out the cost/value of almost anything this side of a space ship is a breeze.

Research has shown that the recipients would much rather choose what they want rather than something they have no use for. Closets desk drawers and garage sales are full of items given that were never used.