What type of rewards work?
We’re now in a digital age where our mobile devices are used for more than just making calls and sending text messages. One would say their entire life is stored on the smart device, from restaurant reservations to holiday bookings, credit card details to monthly expenses. Not only that, but more and more employees are becoming interested in environmental issues and where their company stands in the global movement against pollution. In a recent study by UK bank Barclays, seven in 10 workers (70%) revealed it is important to them that their current or prospective employer is considered a green business. With all this in mind, the signs are pointing to digital gifts being the future of recognition and rewards systems.
Why you should incorporate digital gift cards into your recognition and rewards strategy:
Digital gifts like gift cards have three main advantages:
- Digital gift cards are easy to purchase, allowing employers to provide instant recognition.
- Digital gift cards are delivered instantly, allowing employers to save costs (on printing and delivery) and employees to redeem and spend immediately.
- Digital gift cards are better for the environment. The amount of plastic required to make physical plastic gift cards is enormous and emits harmful C02 emissions into the atmosphere. With digital, there is no plastic which means no harm to the environment is done.
What types of reward programmes should you incorporate digital gift cards into?
Employers need to do the following in order to design a successful reward programme:
- Identify company or group goals that the reward programme will support
- Identify the desired employee performance or behaviours that will contribute to and reinforce company goals
- Determine how employees’ performance or behaviour will be measured against individual or group projects
- Determine appropriate rewards based on employee performance and the goals set
- Communicate rewards programme to employees
Performance-based incentives: Employers can increase employees’ motivation by setting goals/targets for them and attaching compensation-based incentives to certain levels of performance. This applies to yearly, monthly, and spot bonuses. For example, an employee reaches a huge sales target and an employer wants to recognise this achievement. Instead of adding this milestone into their end-of-year reward, the employer decides to offer instant
recognition, for example with a digital gift card, to thank the employee for their hard work.
Points-based incentives: Point systems are incentive programmes where employees can earn points for a variety of positive achievements and behaviours. Employees can save up these points to purchase a prize of their choice. Point systems provide more flexibility as employers can reward employees for a wide variety of behaviours and goals. For example, employees could earn points for punctuality, empowering their peers, practising safety, landing new clients, and helping others with tasks.
Digital gift cards have a place in both reward and recognition programmes as they can be given easily and instantly, satisfying employees needs to be seen and heard by their managers on a regular basis. And as they’re types of programmes that continue to roll – i.e. they’re not restricted to a specific time of year – they keep employees’ motivation and determination to accomplish their targets going high and higher.