When a company strives to achieve higher employee engagement levels, it should focus its efforts on employee reward programs. People look forward to getting appreciated for the work done. Workforce recognition programs like an employee gift card rewards program build motivation, increase productivity, and cultivate a sense of belongingness towards the enterprise. However, it can be expensive, specifically for small businesses, to appreciate the employees through a monetary reward. It is when gift cards come into the picture. This article talks about gift cards being the perfect reward for employees.
Different Types of Gift Cards
Many organizations are unaware of the fact where to start when it comes to incorporating gift cards into their employee rewards system. The first thing a company needs to determine is whether it will offer a closed-loop or open-loop employee gift card rewards program.
- Closed-loop gift cards
Closed-loop gift cards are gift cards meant to work with one particular store or a brand. For example, a specific company’s gift cards can only be redeemed through a specific store.
- Open-loop gift cards
Open-loop gift cards, on the other hand, are gift cards typically branded with a credit card network like Visa. These types of cards can be redeemed across multiple brands unless specifically restricted.
Advantages of Having Gift Cards in the Workforce Reward Program
Incorporating gift cards in the recognition program allows the employees to select the reward of their choice. Not only is it possible to empower employees to choose their own rewards, but also it creates a sense of excitement. Here mentioned are some benefits of the employee gift card rewards program:
- Ability to choose
Although people love getting rewarded, the reward needs to be something that is actually wanted by them and is not forced to accept. Gift cards empower employees to select the reward of their choice. In addition to this, gift cards can be easily and quickly integrated into the point-tracking program of the organization. Enabling employees to make their own decisions, like rewards, influences positive behavior and thus, ensures a positive environment in the company.
- Cost-effective and flexible
It is the simplicity of the gift card that makes it an ideal choice for the employee reward. Gift cards offer the benefit of flexibility. No matter what an organization’s budget is for the recognition program, all it needs is to discover the gift card that covers the same.
- Peer recognition:
Cash-based incentives are reported to fuel a feeling of inferiority among team members. Also, it is oftentimes socially unacceptable to brag about cash incentives. At the same time, gift cards allow the employees to comfortably share their achievements and happiness with peers, which further increases their recognition socially.
Now that a company is aware of the types and benefits of incorporating gift cards in the employee recognition program, knowing about the tips to make gift cards more effective can be of great help. For instance, a personal touch can be added to gift cards when appreciating employees’ contributions to the organization.