The incentives industry is thriving with 84% of U.S. businesses now using non-cash rewards to recognize and motivate their key audiences. Non-cash rewards come in many forms: from award points, gift cards, incentive travel, to merchandise, and more. In 2015, businesses spent $90 billion for these rewards and sales and employees are the largest audiences targeted when it comes to these non-cash rewards.
At GCP, we typically blog about how gift cards are being used to incent and motivate employees, customers, or partners, as well as trends around incentives. However, this article by Roy Saunderson of the Recognition Management Institute has motivated me to highlight the importance of not just recognizing and rewarding your employees, but… inspiring them. “How do we get them to commit their hearts and spirits to the mission of the company?” Roy asks…we love his answers and we hope they inspire you to truly influence the workplace in a meaningful way all year long. Click here to read: Incentive Magazine’s, 10 Ways to Inspire Employees at Year End
What’s the high level? The 2011 Gift Card IQ Survey reveals good news for retailers when it comes to “bigger” incentive gift card budgets. The five largest budget categories (all above $75,000) all increased. For example: - Budgets “more than $100,000 nearly doubled to 15 percent this year, compared with 7.8 percent in 2010.”
Incentive Research Foundation (IRF) and the Incentive Federation recently published a study that highlights gift cards as an employee reward preference over cash rewards. The study about incentive awards recognizes non-cash incentives as a way to control spending, while motivating employees and channel partners. The preliminary results of the study point out that employee cash incentive awards are averaging $732.00, which is triple the cost of non-cash awards. “The study validates our experience and belief that the average cost of a cash award is roughly triple that of either merchandise ($206) or gift cards ($240),” according to Incentive Federation Chairman Stephen Slagle. “The total cost of incentives is especially important in our post-recession economy, so the data points stimulated extensive discussion around the benefits of each award type,” he explained. To read more about this study, visit IMA’s Return On Performance. Check back with us regularly; we’ll publish a link to the full study results once they are available.
The GiftCard Partners name and logo, and other trademarks are trademarks of GiftCard Partners Inc. and may not be used without permission. The names of other companies, products and services are the property of their respective owners.