Choosing the Right Employee Incentive Is Important
“Trust men and they will be true to you; treat them greatly and they will show themselves great.” – Ralph Waldo Emerson
Incentives help companies recruit new talent and retain current talent. 90% of business leaders believe that an engagement strategy could positively impact their business, yet only 25% of them actually have a strategy in place. If you don’t offer incentives or, to be more precise, you don’t offer the right incentives, your competitors will steal your top talent away from you.
Incentives Recognize Good Work
“From having a little card that says, ‘I caught you doing something well’ to just going over and shaking someone’s hand in front of everybody, there are tons of ways you can recognize your employees. The key is to do it publicly in front of other employees.” – Paul Facella, Everything I Know About Business I Learned at McDonald’s
Why Do Incentives Matter?
They create a culture, and your company’s culture is what separates you from the competition. It can make the difference between hiring and retention.
Can Incentives Really Make a Difference to My Bottom Line?
Here are the facts:
- A 5% increase in employee retention can generate a 25 to 85 percent increase in profitability.
- More than 4 out of 10 (42%) employees consider rewards and recognition program opportunities when seeking employment.
- 39% of employees feel underappreciated at work, with 77% reporting that they would work harder if they felt better recognized.
- 41% of customers are loyal to a brand or company because they consistently notice a positive employee attitude, while 68% of customers defect from a brand or company because of negative employee attitude.
- Disengaged workers cost the economy $300 billion or more per year.
- Companies using incentive programs reported a 79% success rate in achieving their established goals when the correct reward was offered.
- Properly structured incentive programs can increase employee performance by as much as 44%.
- Annual revenue increases are 3x higher in companies that use a tangible sales incentive over those that don’t use an additional incentive. When incentive programs are working, the potential for growth is much, much higher.
- Companies that executed a formal, planned-out employee engagement program reported a 64% greater increase in the level of employee engagement than those without one.
So Which Incentive Should I Chose?
If you polled your employees and asked them, “What kind of rewards would you prefer?”, the vast majority of the time the answer would be “Cash.” However, cash or cheques take time, aren’t very secure, and can easily be lost or misplaced. An open-loop incentive card is the superior alternative. They are simple, secure, and can be used virtually everywhere that Mastercard® or Visa® is accepted, including online and internationally. A reloadable card, unlike traditional gift cards, can also have additional funds loaded any time that you want to reward employees. Payments can be sent out to cards in minutes, and can be made as often as required. As well, you can brand the cards so that when your consumer uses the card for a purchase, they remember exactly who it was who gave them the gift!
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