Gift Cards Make Great Employee Rewards During the Holiday Season

By Tom Niedbalski, Vice President - Gift Solutions, Fiserv

The 2022 holiday season is here and employers are considering a variety of ways to show appreciation toward their employees. Giving incentives and rewards can be a simple way to say thank you for a job well done, to congratulate employees on a strong 2022, or simply wish them Happy Holidays, and recognizing team members for all they do is an important way to improve employee morale.

According to the Q4 2022 Gift Card Gauge from Fiserv, employees expect their employer to provide incentives and rewards as a form of appreciation. In addition, many employees say they prefer to receive rewards from their employer in the form of a gift card. Here are a few highlights from the recent survey, including ideas for bolstering an incentive and rewards program with gift cards this holiday season.

Considering the stress many businesses faced in 2022 due to supply chain pressure, staffing shortages and rising costs, a small token of appreciation can go a long way toward strengthening employee morale, boosting productivity, and even increasing employee retention at year end. The holiday season presents a timely opportunity to show employees and teammates appreciation for their effort. According to the Gift Card Gauge survey:

• 79% of employees say incentives and rewards make them feel valued and appreciated
• 43% of employees say incentives motivate them to be more productive at work
• 32% of employees say rewards will motivate them to stay with a particular employer for a longer period of time

Employees want to feel that they are valued, and their employers are listening. According to the Q4 2022 Gift Card Gauge from Fiserv, 59% of employees note that their companies are rewarding them for good performance, up from 50% in 2021.

What is it about gift cards that employees love? While gift baskets, company merchandise, and other tangible gifts are a nice token of appreciation, employees are clear that a gift card is the next best thing to receiving cash. In fact, 90% of consumers say gift cards are an appropriate employee incentive, and 75% of employees prefer gift cards because they allow the employee to buy something they actually want. How much should a business place on a gift card for their employees? According to the survey, employees said that 50-100 dollars, or more, is the most appropriate gifting level from an employer.

In addition to providing employees the flexibility to buy what they want, when they want, many employers also appreciate that gift cards can be presented in creative ways, or that gift cards can be personalized for the recipient. Digital gift card functionality has come a long way in enabling personalization and customization. Some digital features that facilitate personalization include gift card delivery via text or email, and the ability to include a short, personalized video message. Gift cards can also be delivered digitally to team members regardless of their physical location, an important consideration as businesses increasingly attempt to engage remote work forces.