It’s not a secret that happy employees display a positive can-do attitude that drives them to succeed. To inspire employees further, businesses must always lookout for new ways to reward them. So, here’s the debate: should businesses give out cash incentives, or should they give them gift cards? While cash may seem like the ideal answer to this dilemma, gift cards offer advantages over cash rewards that we will address in this blog.
Continue reading to find out six reasons why gift card incentives are better than cash. Let’s jump in!
1. They are more memorable
When employees receive an incentive gift of cash, it almost feels like receiving a second salary or compensation rather than a reward. This doesn’t necessarily mean it’s a bad thing, but the lack of distinction between an award and a salary means that the employee is less likely to remember the reason behind the achievement. Gift card purchases are much more memorable, and it creates a lasting reminder of their achievement.
Additionally, did you know that the cash incentives are taxable? Yes, they are! So, when you think an employee receives an incentive amount of X, they’re, in fact, getting less than that. Now, that’s not fair, is it?
2. Employees can really treat themselves
As mentioned in benefit #1, cash rewards can often be associated with compensation. As a result, the rewarded cash disappears in the family budget immediately, or they get lost in the day to day expenses like bills, groceries, and mortgages. The positive feeling of being rewarded literally goes away. So, whether your employee is into games, movies, music, or online shopping, WhitePreGifts offer a variety of gift cards that employees can take advantage of to actually treat themselves for their hard work.
3. Gift cards are more personal
Are you one of those people that are under the misconception that gift cards are not personal? If yes, let’s bust the myth.
The freedom of choice is what separates gift cards from cash. Since every employee differs in their needs, personalities, interests, background, etc., a gift card will allow recipients to purchase whatever product they want whenever they want to, making the reward personalized to them. A gift card emphasizes to the employee that the business is paying attention to what they value as an individual. This is certainly not the case with cash. No matter how fancy the envelope is, cash feels very impersonal, thoughtless, and an easy way out.
So, if you know that your employee is into games, movies, music, or online shopping, choose WhitePreGifts to personalize their reward. And if you still need more ideas you can use this guide to talent optimization here.
4. Guilt-Free Shopping
As mentioned earlier, when you give employees cash incentives, they’ll likely to spend it on necessary items rather than enjoyable options. However, with a gift card in hand, they are very likely to treat themselves guilt-free. For example, imagine your employee wanting to purchase a high-quality music system for a long time, but for whatever reason, he/she hasn’t bought it yet. Maybe they couldn’t afford it. On receiving a gift card, he/she doesn’t have to feel guilty about purchasing the desired item anymore! In fact, they can’t wait.
Remember, WhitePreGifts not only offers gift cards in gaming and streaming services but also with the giant retail Amazon – so every item on the participants wish list can be fulfiled.
5. Viral Value
Do you feel comfortable talking about cash with people? No, right? Think about it: people are much more discrete with cash, and in some workplaces, talking about cash rewards or bonuses is a hush-hush subject.
However, people feel free and very excited to share with their colleagues stories about their gift card purchases. This excitement extends to the lunchroom and motivates others to take more interest in the company’s reward programs, in the company’s culture, and, above all, to work harder. Gift cards indeed have storytelling powers, aka word of mouth marketing.
6. Gift cards can be used and shared with loved ones
The family of the rewarded employee can enjoy the fruits of his/her hard work as well. The purchase from the gift card can be something for the house or for a family member, leading to a shared redemption experience. When the family of the employee is involved in selecting the reward, they’re very likely to support and encourage the participant’s career goals.
WhitePreGifts Card is the Way Forward
So, which do you think is the better option? Cash or gift card? Based on the benefits stated above, we believe that if businesses want to drive high performance and give incentives to their employees, gift cards are the way forward. Opt for WhitePreGifts card so that your employee gets the opportunity to treat themselves and positively associate the company with the experience.