GiftCard Partners Blog

For many businesses, staying open during the holidays is essential. Whether you’re a retail store, restaurant, healthcare provider, or service organization, holiday operations can make or break your end-of-year success. But for employees, working through the holidays can also bring stress, fatigue, and a sense of missing out.

Employee engagement in the U.S. has stalled at 31%, down from its pandemic-era peak and representing millions fewer engaged workers across the workforce. New findings from Gallup reveal a deeper issue behind the headline numbers: engagement isn’t eroding because employees don’t care; it’s declining because basic workplace needs are going unmet, especially for younger workers.

As the year winds down, most employers look for ways to say “thank you,” whether through holiday gatherings, year-end messages, or rewards such as gift cards. But today’s most effective leaders are going beyond traditional appreciation to use the holiday season as a strategic bridge into the new year.

A new MarketWatch survey release this week indicates that employees don't need much to feel rewarded during this holiday season.

Another study out this week, by the Incentive Research Foundation shows again, what the GCP team has known for years, cash incentives are not always the most effective.  According to this new research non-cash incentives such as merchandise, travel, and gift cards prove more effective than cash rewards.  Employees find them to be more valuable.  They drive more competition in today's tough economy, and are viewed as a special treat, rather than cash that could be spent on bills, or groceries.  Non-cash incentives must be used for a special occasion, whether it is a trip, or "free" merchandise purchased through a gift card. The trophy value of gift cards and other non-cash incentives is also important in today's economy.  No one wants to lose their job, or feel as though their job is in danger, these kinds of incentives serve as better reinforcement of behavior than cash.  Employees take more notice of other employees receiving non-cash incentives, rather than a check that is often included in an employees regular paycheck.   So when beginning to think about end of quarter, or end of year bonuses and rewards, think outside the "cash box."  
For more information on the Incentive Research Foundation study click here.