Why Should You Choose Gift Cards Over Cash Incentives?
Employee Rewards: Gift Cards vs. Cash Incentives
It is not a secret that happy employees are better performing employees. This is the main reason why companies are always on the lookout for new ways to inspire and incentivize their employees. However, figuring out what motivates employees could get tricky. Should you give out cash incentives based on performance? Or should you buy them gifts that you assume they would like and appreciate?
The answer to these questions is never truly straightforward.
Since employees differ in their needs, personalities, ambitions, backgrounds, interests, etc., it is almost impossible to pin point what would make the perfect gift.
While cash might seem to be the ideal solution to this dilemma, a few studies suggest that, when compared to gift cards, the latter is the way to go.
But what makes gift cards such effective tools for rewarding your employees? And why should you use them instead of cash? Discover the answers to these very important questions in this light and interesting read.
Why gift cards are better than cash incentives:
They are more memorable
Cash might be a safe option to give your employees. However, it definitely is a more memorable one. Why you might ask. Well, cash incentives feel more like compensations than gifts. Moreover, when you redeem your gift card for whatever it is you want/need, you are more likely to remember how you earned it.
They are more personal
Whether you place it in an envelope, put it in a box or wrap it with a bow, at the end of the day, cash is just money. It is impersonal and almost always perceived as a thoughtless gift. On the other hand, choosing the right gift card requires deep thought and an understanding of the person’s needs, wants and interests. This in turn shows him/her that you are paying attention to what they value.
They are the guilt-free spending option
When you give your employees cash incentives, they are more likely to spend that cash on practical and necessary items rather than on fun and enjoyable options such as going to the movies or getting a luxurious treatment at the spa. However, when you reward your employees with gift cards, they are more likely to treat themselves to something special or go on a guilt free shopping spree than think of practicalities and necessities.
They give employees more bragging rights
Think about it: Less people would be comfortable bragging about their cash incentives as opposed to their gift cards. This means that gift cards give employees more freedom to share and communicate with other employees about their incentives and thus motivating them to take more interest in your reward programs.
They yield better results
According to research by Innowave Marketing, employees usually feel more motivated when they receive gift cards than they do when they receive cash incentives. This makes gift cards the much more effective and sought after option that you should consider as well.
Bottom line is, whether you choose open or closed loop gift cards, if you want to drive performance and incentivize your employees, gift cards are by far the best gift giving option.
To learn more about our gift cards, click here.
To learn more about using gift cards for incentive programs, click here.