Employees that feel valued deliver the better results. Employers should reward good work and celebrate important dates like birthdays and work anniversaries. Unlike your spouse or child, employees do not expect you to know what gift they want. They prefer a gift card so they can choose whatever they wany to buy…and you should prefer a card too!
Gift cards are the gift of choice, favored by employers and employees. Sixty percent of employees responded to the 2022 Annual Consumer Insights survey by Fiserv that they received a gift card from their employer in the previous year. Their popularity with employers is supported by the massive 85% of employees who responded that they consider gift cards an appropriate incentive. Almost half of respondents told the Incentive Research Foundation that gift cards were their favorite types of gifts or reward; especially amongst Gen Z.
The psychological phenomenon of ‘Mental Accounting’ enhances the enjoyment of gift cards. If an employee receives cash, they will apply it to rent or their electricity bill. But if they receive a gift card to, say, Starbucks, they are more likely to spoil themselves without the guilt that attaches to spending real money on high-priced coffee.
The popularity of gift cards is a win-win for employers. They are easy to give because an employer can give it to all employees; irrespective of gender, religion, or age. This is especially the case if the employer purchases the card from a flexible gift card provider that enables the employee to spend the gift card at a wide range of retailers. It is like window shopping at a mall before deciding which shop to enter – it adds to the fun of the gift card.
The process of sending cards, especially digital gift cards, to many employees is very efficient. Rather than having to arrange postage and cards and deliver, it is all done online. You can usually set up bulk gift card distribution so the whole team, in every location, can receive the card. If you have more time, you can add a personalized greeting card to the gift card which makes the gift even more meaningful.
While purchasing a physical gift involves more effort for an employer, it also carries more risk that it will be an unappreciated gift and deliver less joy to the employee than an easy-to-deliver gift card. Providing gift cards to employees is really a win-win for all involved.