Top 5 Reasons to Replace Gift Cards
Gift cards may be convenient, flexible and provide broad appeal with employees. However, gift cards have several limits. Below are the top 5 reasons to replace gift cards with symbolic awards.
Reason #1: Gift Cards Are Not Personal
Gift cards do not recognize employees for their personal achievements or express to employees their manager’s appreciation. This leaves employees feeling unappreciated for their efforts. Recognition programs should motivate and reinforce desired behaviors. This occurs when employees receive an award that represents their personal achievement.
Reason #2 Gift Cards Lack Emotion
Employees do not make the same emotional connection with gift cards as they do with symbolic awards. Gift cards lack sincerity. Recipients do not consider a gift card special; as a result, employee performance suffers.
Reason #3 Gift Cards Provide No Memory
Gift Cards are not memorable symbols of accomplishment. The reward is easily forgotten, leaving the recipient without a lasting memory.
Reason #4 Gift Cards Are Not Used
- 10% of gift cards are not redeemed
- 25% are re-gifted for someone else
- Employees sell gift cards for a discount on a secondary market
- Employees cannot remember what they used them for
- Cards are lost
Reason #5 Gift Cards Provide Low ROI
Recognizing an employee for good work should always increase employee performance and customer satisfaction, making the company more profitable. Gift Cards are not personal, lack emotion, are forgotten, and are not redeemed, making them a poor award option. Replacing gift cards with symbolic recognition awards is personal, emotional, memorable, and lasting, making awards the ideal choice to increase profitability with a high return on investment (ROI).