Using gift cards for employee rewards and incentives

More Memorable Recipient Experience

Gift cards are most often claimed for something tangible (merchandise or an event/experience). The more important the selection, the more likely it will be remembered and tied to your incentive — what you did for them, and the hard work that got them a reward. Very often, your incentive won’t cover the full value of the recipient’s selection, this is not necessarily a bad thing. It’s a problem if you offer lunch or a cup of coffee because it may make the giver look out of touch or just cheap. But if it is a higher value item that the recipient adds your reward or incentive to, the benefit of that item or event is still associated with the incentive. Customers continually comment on the fact that they give customers or employees Apple or other electronics gift cards and they used them for much more costly items. Having the recipient associate your $100 gift card with a big screen TV or MacBook increases the benefit of the incentive to both the giver and the recipient. Establishing a trophy value creates a lasting reminder of the achievement; something they can celebrate with their peers and family over time. Memorability is one of the main reasons why non-cash rewards are more effective than cash. The experience of getting rewarded and purchasing something is more valuable than the reward itself.

Another advantage of gift cards over a cash incentive is that it allows the recipient to disassociate it from cash and use it for something they may have been wanting to purchase for a while, but without worrying that it would be better spent going towards a bill or savings.

Organizationally Effective

It can be difficult to talk about cash bonuses with our colleagues and friends, but a gift card they selected from a curated group, or the item or experience they use the card for are tangible things they can talk about, without the stigma. Gift cards for employee rewards and incentives let recipients talk about their achievements more freely while creating a positive impression of your company which can help with attracting and retaining talent.

It’s also important to consider the potential downside of rewards and incentives giving. Cash-based incentives are often viewed as a salary boost or bonus and are more likely to fuel a feeling of inferiority among other team members. It is also often seen as socially unacceptable to brag about cash or question someone else about it. Award typically find it more comfortable to share their happiness about a non-cash reward with their peers. Such conversations not only aid in team building but also motivate others. Non-cash achievements tend to carry a different tone and are less susceptible to trolling on internal communication and social media. The goal is to improve the morale of all while enhancing the organizations’ reputation.

Cost-Effective

Whether you’re using digital gift cards from TruCentive for employees, customers, partners, vendors, or any other purpose, there is Zero waste. Because you set the expiration date of your incentive, once expired, those who did not claim their incentive (forgot about it, felt guilty receiving it (gift guilt is real), no longer have access to their email, etc.) will have the value of their incentive automatically returned to your account. The industry average for unclaimed cards in a B2B environment is around 21%. That saving is automatically recouped and added back to your account.

The other major cost that is often unmeasured in organizations is the overall soft cost to send incentives. Giving rewards and incentives should be fast and fun. Empower individuals in your organization to deliver incentives quickly and efficiently with pre-designed templates and projects and budgets!