Understanding what motivates employees is critical to business success so when research such as that commissioned by Ixaris, shows that ‘cash’ equivalent gift cards such as eftpos cards is the most popular choice for employees, we all nod sagely and say of course. What might surprise you though, is that cash is also the least desired option of the second largest group!

How can we explain this?
It’s actually fairly simple. Many employees who receive cash as the benefit of their recognition or incentive programs simply think of it as a top up to their pay while those that receive a tangible gift card tend to use it on a luxury or treat.
When you think back to what you are trying to achieve with your employee recognition program, this is a pretty important distinction. Do you want your employees to just see it as part of their pay or something special? The latter is much more likely to reinforce the positive behaviour or result you were rewarding for in the first place!
Let’s examine why cash as a reward may be detracting from your reward and recognition program:
• A lack of tangibility. The reality is most cash payments are now down via electronic means and that often gets swallowed into account statements that are not reviewed. Worse even, the amount may be included with a pay run so it’s virtually invisible to the recipient.
• The “invisible” nature of this transaction does nothing to link ‘behaviour and reward’ in the mind of the employee.
• It also runs the risk of just being eaten up in direct debits and bill paying, which doesn’t do anything to link the behaviour to the reward. Exactly the reason you invested in an employee recognition program in the first place
• Expectation and Entitlement – adding a reward to a general pay cycle also runs the risk of setting up an expectation that is what their pay level should be. This again may contravene the positive behaviour change you are trying to develop
• Association & Longevity
• Cash is soon forgotten, its either in your account or wallet and then it gets wrapped up in your own money
• A fundamental part of a successful employee recognition is ‘recognition’. There isn’t much ceremony in putting some money into your account and perhaps receiving a remittance advice from HR
• A company branded eftpos gift card is a great way to associate the behaviour you are rewarding for to the reward its being spent on
Why not consider the best of both worlds with a branded eftpos gift card?
As they are open loop cards, they can be used practically anywhere from a day spa to a brand new pair of shoes, but still providing all the benefits of cash.You can use corporate gift cards to showcase employer branding, to reinforce how and where staff earned their reward whenever they use their card. Because as the research shows people are more likely to treat themselves to something special with a gift card, you again amplify the feel-good factor and association between behaviour and reward.
The perfect staff reward and recognition program satisfies both organisational and employee goals and objectives whilst driving continuous behavioural change.
Don’t let your good intentions get lost – make your staff rewards special, readily visible and a joy to use.