In today’s post-pandemic work environment, employees are doing their jobs in the office, remotely or a combination of both. With many companies having multi-office locations and hybrid work arrangements, employers are often challenged to keep employees engaged and productive.
However, one thing that never changes, regardless of work location, is the need for employee recognition. Fiserv’s Q4 2024 Gift Card Gauge examines employee sentiments regarding employer reward/incentive programs and the role gift cards play within these programs.
Employees appreciate recognition from their employers
Conducted in August 2024, the Q4 Gift Card Gauge found that 89% of respondents say receiving a reward or incentive from their employer makes them feel like a valued member of the team.
Such rewards also help with retention, recruitment and engagement. Specifically, 45% of employees feel rewards/incentives motivate them to stay with their jobs, 81% note it makes them more likely to recommend their company to others and 58% suggest that these enticements help boost their productivity levels.
So, what makes for a good reward/incentive program? More than half of respondents (54%) say they want a mix of both annual and performance-based reward/incentive options available. Regarding specific reasons to reward efforts, two-thirds want to be recognized for a strong job performance, half want the same for a work anniversary and one-third cited project-based successes.
Lastly, employers must recognize that acknowledging employee efforts does not need to be a grand gesture. In fact, 54% prefer personal recognition for their achievements over public recognition (39%).
Inflation affects consumers’ incentive-related expectations
Inflation, while cooling at 2.9%, is still top of mind for consumers since everyday purchases like groceries and gasoline hit their pocketbooks hard. Employers recognize this, which is one of the reasons they are considering practical changes to meet their workforce’s shifting financial demands.
One in five employers are giving out more rewards than last year and 62% have increased the monetary value of rewards/incentives. This recognition is appreciated by employees, the majority of which (56%) believe at least $100 is adequate for a reward/incentive.
Gift cards rank supreme among incentives
While cash/checks remain the preferred reward for employees (72%), gift cards are the next in line. Specifically, 58% of respondents denoted a prepaid gift card – AMEX, Visa or Mastercard – as the second most popular choice while a store- or brand-specific gift card came in third (41%). These options sit above traditional incentives like employee events/outings (22%) and tangible gifts (21%).
In total, 86% of respondents feel gift cards are an appropriate incentive. The preference for gift cards over other incentives comes from the freedoms they provide, as respondents note purchasing flexibility (79%) and ease of use/redeemability (64%) as the top reasons why gift cards make an appropriate incentive.
Check out more findings from the Q4 2024 Gift Card Gauge.
