Today’s employees want to take home more than a paycheck. They still want adequate pay and benefits, but employees also appreciate it when their employers acknowledge a job well done. And in a market where the search for talent remains scarce, savvy employers understand the importance of keeping their employees inspired and engaged. One way they accomplish this? Regular employee rewards/incentives.
The Q4 Gift Card Gauge from Fiserv assessed consumer perceptions of workplace rewards/incentives, and the role gift cards play. The study found 55%1 of consumers said their employer has given out more rewards or incentives this year compared to 2022.
Organizations understand that gift-giving can be a great tool to drive home various messages around the entire employment lifecycle. It can even become a method employers can use to increase their competitiveness in attracting and retaining top talent.
When evaluating new employers, 35%1 reported that rewards/incentives are a big factor in the decision process, up from 26%1 in 2022. In fact, 22%1 of respondents said they changed jobs in the past 12 months because of a lack of employee rewards/incentives, with 81%1 noting their new employer provides more rewards. These findings show the importance of employee appreciation when sourcing new talent.
Rewards/incentives also have their place in retaining existing talent. Specifically, 85%1 said receiving a gift from their employer makes them feel like a valued member of the company, while 30%1 said regular employee incentives would motivate them to stay.
For employers looking to reward their employees, consider what other companies are doing, as respondents denoted strong work performance (61%)1, work anniversary (50%)1 and putting forth extra effort (44%)1 as their top reasons for receiving rewards/incentives.
When it comes to incentives, 86%1 said gift cards are an appropriate employee gift and 80%1 said they would prefer gift cards over other non-taxable incentives – including tickets to events, FSA/HSA contributions, and even gym/spa memberships. Why the focus on gift cards? For many respondents, it comes down to the freedoms gift cards provide. Specifically, more than three-quarters (77%)1 prefer the ability to purchase what they want, even if it is event tickets or gym memberships.
When considering employee rewards/incentives, also consider looking beyond work performance to explore larger lifestyle changes. For example, nearly seven in ten respondents (69%)1 agreed a gift card would motivate them to make a healthy lifestyle change – such as hitting a fitness goal or getting an annual physical. With more organizations encouraging healthy lifestyle habits for their employees, it may be time to look beyond recognized benefits like FSA/HSA contributions.
Through innovation and creativity, retailers can use gifts cards to address the needs of the modern consumer, while continuing to reinforce brand loyalty. To learn more, contact a Carat expert today.
For more findings from the Q4 2023 Gift Card Gauge, click here to download the report.
Conducted in September 2023, the Q4 2023 Gift Card Gauge from Fiserv is a survey of over 1,000 U.S. consumers aged 18 and older, to help merchants better understand industry trends, and how consumers use gift cards. The margin of error for this Gauge is +/- 3%.
1Source: Q4 2023 Gift Card Gauge consumer survey