Holiday gift cards have a meaningful impact on employees and their teams worldwide.
In fact, a recent survey from CleverCards, which polled 600 employees in Ireland, revealed that 84% of respondents said receiving a holiday gift card from their employer would boost their engagement and make them less likely to consider switching jobs.
The main reason employees were motivated by gift cards was their flexibility—they could be spent anywhere. Workers also noted that they would use the funds to treat themselves instead of covering essential expenses. Indeed, the study found that only around a quarter of respondents planned to use their incentive to pay bills.
“As it is in Ireland, it is in the United States,” said Jordan Hirschfield, Director of Prepaid at Javelin Strategy & Research. “In Javelin’s U.S. survey, we asked employees if receiving a recognition benefit increases their satisfaction with their employer, and 83% said yes. Employees generally treat themselves with these incentives, and Javelin’s research shows that people will usually spend more than the value of that gift card.”
The Three Points
The rising popularity of gift cards as employee incentives creates powerful opportunities for retailers and gift card issuers. According to Hirschfield, when consumers receive a gift card from a new brand, 44% become repeat customers, and 41% join the company’s loyalty program.
Recognizing the benefits of employer incentive programs, more brands are now offering discounts on their business-to-business offerings to drive sales.
“The employers that participate in formal incentive purchase programs buy gift cards at a discount,” Hirschfield said. “That discount is worthwhile to the retailer because it can ramp up repeat purchases. Instead of offering a coupon, which is strictly money off, this is a slight discount which they then recoup by participating in these plans.”
“To link it back to the employers, their employees are more engaged and responsive, and they’re more likely to stick it out through the ups and downs of the workplace,” he said. “It’s a massively beneficial program for all three points that are involved: the employee, the employer, and the sponsor of the gift card.”
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