Paper or plastic?
Employees always appreciate cash incentives, but gift cards have several advantages over cash or paper certificates. They’re easier to brand with your business logo for a more professional presentation. They also require less administrative effort than cash and paper: not only are they more durable, they are also better protected against fraud. And American Express® Gift Cards come bundled with special offers for even more value.
A popular incentive
In the last year, corporations increased their use of gift cards as employee incentives by 17%—and “open loop” cards like American Express Gift Cards were given over 80% more often, according to a study by Mercator Advisory Group last October. (Open loop cards can be used at companies other than the one that issues them.)
It’s not surprising: gift card incentives work. According to a 2006 study by Incentive magazine, 69% of companies found that gift cards were as or more effective as cash in motivating their workers. And as part of a well-structured incentive program, they can increase an employee’s performance by as much as 22%, says the International Society for Performance Improvement for Incentive Research Foundation.
So how do you structure your incentive program to be successful? Here are a few pointers:
- Define your goal: Be as specific as possible: for example, state a specific number for a sales goal.
- Create the process: Who qualifies? What is the time period? How will the incentives be awarded?
- Communicate: Keep communicating your goal to your workers throughout the time period. Hold a group kickoff meeting. Meet in person, one-on-one, to encourage them. Post a write-up on the company website.
- Evaluate & Award: Be ready to reward everyone who meets the goal. Look closely at each worker’s performance so no one is overlooked.
American Express Gift Cards can provide an easy yet powerful solution and are available in various denominations from $25 to $3,000. Customize them with a personal message or add your business logo for a more professional touch. Refundable and replaceable if lost or stolen, they also come bundled with special offers at name-brand retailers. Best of all, they’re accepted wherever American Express Cards are accepted in the U.S. It’s a simple solution that can go a long way toward keeping your employees more engaged with your business. Learn More.
Stay tuned for more tips and advice from OPEN that can help you manage and grow your business.
*Fees, terms and conditions apply to Gift Cards. May be used at merchants in the U.S. that accept American Express® Cards. Cannot be used at cruise lines, for recurring billing charges, at casinos or ATMs. Subject to applicable law, a $2.00 monthly service fee applies starting 12 months after purchase.