Recent research indicates that most employers believe non-cash rewards are a stronger motivator than cash. Non-cash rewards include merchandise, travel and gift cards. While a gift card is like money, it forces employees to treat themselves to a product or service, such as a new outfit or a day at the spa. According to the 2006 Gift Card & Certificate Facts Report from Incentive Magazine, of 591 respondents 83% reported using gift certificates in their incentive programs. Most of the respondents were C-level executives (34%) or sales and marketing/merchandising managers and directors (26%), who represented individuals working in a variety of industries.
But with so many different players selling gift cards, which ones are employers actually purchasing to motivate their staff? It turns out most companies want to treat their top performers to a nice meal, with dining/restaurant ranking number one at 76%, up from 68% in ’05. That is closely followed by retail store at 71%, while entertainment is a distant third, at 50%. Gift certificates to purchase gas (29%) registered very strongly in ’06, not surprising given escalating fuel costs. Credit card-branded debit cards also emerged as a new option that gives employees a greater range of products and services to buy. Falling in popularity were gift cards from online merchants (19% in ’06 from 26% in ’05), multiple-merchant certificates (17% in ’06) and, with the steepest decline, bank issued-debit cards (12% in ’06 from 30% in ’05).
