The True Cost of Rewarding Your Employees - Vouchers vs Merchandise

Employee Incentives Merchandise Recognition Rewards

02 November 2015

As a general rule if you ask anyone whether they prefer cash based rewards like vouchers and pre-paid credit cards, or trophy value rewards like merchandise and travel, often the automatic answer will be to take the cash based reward.

By our very nature we’re programmed to desire cash, that is why most of us spend 8-10 hours a day at work, right? Many people have also had bad experiences in the past with overpriced rewards and poor selection. However, if we take a slightly deeper look into the brand impact of voucher and credit card focused programmes, you may soon start to realise the overall impact they can have on your employees and their relationship and identification to you as an employer. Here are a few simple reasons to suggest limiting, or totally removing, voucher and credit card based rewards.
 

Limited opportunity to celebrate success 

Credit cards and voucher rewards offer an impersonal opportunity to celebrate success when compared to ‘trophy value’ rewards, (such as merchandise or travel). One of the key challenges is that you simply don’t know what your employees have spent their vouchers and credit card balances on. In effect, you’re just giving away money with little or no opportunity to share in its benefits. A well-designed rewards strategy should be all about the celebration of rewards success, to deliver maximum kudos with your staff.  If we don’t know what our staff are doing with their rewards, we’re missing out on key opportunities to share in their successes, maintain mindshare and strengthen our relationships with them. Insight into the rewards behaviours of your staff allows you to start to understand their personal behaviours, personalities and motivations. It’s vital to keep your employee rewards and recognition programme top of mind; ensuring employees remember that it’s YOU who is providing their rewards. Don’t let your programme just become a bank account or wallpaper for your team.
 

Delivering employees a personalised thank you

Often the case with vouchers and pre-paid credit cards is that the brand experience your employees end up having is with the retailer where they purchase, or redeem their vouchers, (rather sadly not with you). Why do all the hard work in developing your rewards programme, embracing your team member and nurturing the relationship and their success only to let someone else own the final rewards experience? It is better that you have a complete branded gallery full of fantastic reward options and a service delivery team to provide your employees with a first class experience. Ideally, enable them to set and track rewards goals within the programme, then work with your employees toward achieving their desired rewards. This is a true win-win situation allowing you to fully leverage your reward programme to achieve shared goals with your staff and a personalised way of saying thank you.
 

Creating a positive and lasting psychological workplace link

When employees are recognised and awarded physical rewards through your programme they remember them. They remember how they earned them and most importantly they remember you, your encouragement and your appreciation.  These memories are long lasting and create positive psychological links back to you as an employer, (especially bigger ticket items). Doing so increases motivation, engagement levels and nurtures loyalty to the job. The challenge with pre-paid credit cards and vouchers is that they basically equal cash, which we spend on everyday necessities. As a reward they are far too quickly swallowed up by the daily costs of living, easily losing their impact and simply become an expectation rather than reward. What may seem simple and convenient often takes them a step further away from you as their employer and why they received it in the first place.
 
While on the surface vouchers and pre-prepaid credit cards are a simple and convenient way to reward your employees, sometimes simple and convenient just doesn’t cut it. Issuing gift cards creates a positive link between the employee and the provider so if you want to create a deep, long-lasting link between the reward and your company, you need to look outside of what is simple and convenient.

 
 


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In the fierce world of recruitment, the best candidates will be searching for companies with attractive and compelling offers. This places an emphasis on the need for recognition and a rewards solution for today's techno-employees..

The True Cost of Rewarding Your Employees - Vouchers vs Merchandise

As a general rule if you ask anyone whether they prefer cash based rewards like vouchers and pre-paid credit cards, or trophy value rewards like merchandise and travel, often the automatic answer will be to take the cash based reward. .

Power2Motivate Announces Industry First for the Middle East: Oman Arab Bank

An Employee Rewards Programme for Oman Arab Bank has been announced for Power2Motivate as an industry first for the Middle East. .

Power2Motivate Wins Top Industry Award

The Employer of Choice inaugural survey developed by HRD magazine collects data from over 2,000 employers nationwide and identifies those who are going above and beyond to develop outstanding workplaces..

Reward and Recognition Lessons From The Company That "Walks the Talk"

As specialists in the recognition and rewards industry, we're convinced of the power of employee engagement and meaningful recognition to transform organisations and spur growth. .

10 Reasons to Recognise Employee Achievements

Taking time to recognise employee achievements helps foster engagement, increases productivity, and reduces tension in the work environment. Leading a team can often be a challenging task let alone ensuring all staff are engaged. .

Top 10 Things to Expect from a Global Rewards Provider

Finding a reliable provider who is able to offer and deliver a wide selection of meaningful global rewards remains can often be a challenge. .

The Millennials - a New Focus for the Recognition and Incentives Industry?

Whilst they are a ring-fenced generation, they still share with their older peers, a universal desire to be acknowledged, appreciated, and rewarded for their efforts in the workplace. Millennials are now reshaping the recognition and incentive industry. .

Motivating Staff is Vital to Improve Customer Satisfaction in Call Centres

A company’s reputation is vital to its very existence and with the world being a rather scarily transparent domain, there’s nowhere to hide. As we all know, it only takes one social media outburst by a disgruntled customer to keep your PR department busy for weeks. .

Power2Motivate Wins Top Industry Award

Power2Motive Wins Top Industry Award for Employee Engagement and Recognition Program.

Power2Motivate Launches in London

Power2Motivate expands its international presence and chooses London to be its European HeadQuarters..

Peer to Peer Recognition – When it Doesn’t Work

It can be hard to tell the difference between someone exceeding expectations at work or just doing their required job. It is important to know the difference in order to recognise the over achievers..

Why Would We Want to Empower Our Employees?

Empowered employees on the job have better outcomes and results in a more productive work environment..

How to Create a Customer Loyalty Program that Makes a Positive Impact

Customer loyalty has really become a focus for businesses over the last two decades and trying to crack this concept in an ever changing market can often be difficult..

Why People Leave Their Jobs, and How You Can Stop it

How many new employees have you hired this year? What are you doing to make sure they stay?.

Three Steps to Make Your Brand a Habit

Loyalty programs with fantastic rewards can encourage your existing customers to stick around, and even attract some new ones..

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