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There are more ways than one (money) to show your appreciation for and commitment to your employees. But what employees want has changed over recent years.
“Employees are most excited about incentives that are flexible, convenient and allow them to purchase exactly what they want or need,” said Blackhawk Network (BHN) RVP of incentives AU, Will Feutrill.
Specifically, gift cards take the cake as the favourite end-of-year reward for Australian employees. It’s worth noting that the list does not include cash gifts, which, the survey showed, employees are more likely to consider part of their remuneration than as an additional reward. Indeed, studies show that employees are more enthused by non-monetary rewards.
“Employees see prepaid or gift cards as an opportunity to perhaps splurge on things they want or help budget for the things they need in the lead-up to the holiday season,” he said.
Among the reasons employees seem to value gift cards so highly is that they can be thoughtful and tailored without being restrictive. Seventy per cent of surveyed employees said they prefer gift cards to specific gifts, while 80 per cent said gift cards improve their loyalty and productivity.
Alex Palacky, people and culture business partner at BDO Australia, commented: “From time to time at BDO, we have used gift cards as a reward, and these have been really well received.”
“We find it more personal as it allows people to purchase something that they like and is useful to them.”
In previous years, the end-of-year party was a coveted way to reward employees. Now, in the age of hybrid work, employees want flexibility.
Behind gift cards, bonuses and additional leave came in second and third, respectively. Leave, in particular, is prized at the end-of-year period as it can allow employees to take advantage of the holiday period and to spend more time with their families. As noted in the study, additional leave can be a more realistic reward for employers who might be cash-strapped.
On the other hand, employees do not have to directly gain from the rewards to find them valuable. For instance, almost half of employees surveyed by BHN said they would be more inclined to work for a company that donates to charity. The report outlined the benefits of investing in charities. The benefits are only greater when employees are allowed to help decide to which charity the company should donate.
As noted by Ms Palacky: “At this time of the year, it’s also a good time to reflect and think about how we can give back to our community. Offering options like volunteer leave so people can give some of their time to a local community or charity organisation can be a really meaningful benefit.”
Although parties have fallen in favour, the survey found that lunches are still popular among employees. “Employees still appreciate a lunchtime celebration,” explained BHN.
“With more remote and flexible workers, some companies are using the lunch celebration as a reason to encourage in-office participation.”
Despite the utility of end-of-year rewards, it can serve your business to embed recognition into your operating model. As noted by The Institute of Leadership: “Ideally, organisations should be recognising and rewarding their people throughout the year.”
It’s also important that, as noted by Alison Coleman, rewards do not dis-encourage the efforts of certain employees. The key here, said John Cooper, chief executive at JCA Global, is that unique performance is rewarded, but all feel valued.
“By demonstrating that you are a boss who cares about and supports an individual, even when they have underperformed, you will gain their absolute loyalty,” said Mr Cooper.
Mr Feutrill concluded: “Whatever you choose, giving a small gift definitely helps with employee wellbeing and builds a stronger workplace culture.”
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Benefits include any additional incentives that encourage working a little bit more to obtain outcomes, foster a feeling of teamwork, or increase satisfaction at work. Small incentives may have a big impact on motivation. The advantages build on financial rewards to promote your business as a desirable employer.
Nick Wilson
Nick Wilson is a journalist with HR Leader. With a background in environmental law and communications consultancy, Nick has a passion for language and fact-driven storytelling.
