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Did you know that rewarding employees with pre-taxed gift cards could increase their dollar value to employees while neutralizing the costs of employee engagement tools? One of the most powerful tools for boosting employee engagement scores is an effective rewards program.
While there are many reward options for employee engagement, gift cards have emerged as a popular option. They’re versatile and easy to personalize. Plus, with Bonfyre, they can save you thousands to millions of dollars vs. other vendors . Here’s how you can bring more value to employee rewards with gift cards from Bonfyre.
Why Rewards Matter for Employee Engagement
Employee engagement is an ongoing process throughout an employee’s career journey with a company. It must be nurtured continuously to ensure that an employee doesn’t become complacent or malcontent.
Engaged employees exhibit enthusiasm for their roles and demonstrate a strong commitment to the company’s success. They often go the extra mile, driving innovation and significantly boosting productivity.
Recognizing and rewarding your employees is a vital tool for engaging and, ultimately, retaining them. Rewards encourage positive behaviors and inspire employees to maintain high standards. A well-designed rewards program sends a clear message that employee contributions are valued.
This notion elevates morale, fostering a culture of appreciation. This leads to higher job satisfaction, improved retention rates, and better overall performance.
Research indicates that companies with highly engaged employees experience a 21% increase in profitability. Additionally, organizations with effective engagement strategies see a 41% reduction in absenteeism and a 24% decrease in turnover rates. By integrating a comprehensive rewards system, companies not only enhance employee morale but also achieve significant cost savings and improved financial outcomes.
The Unique Value of Gift Cards as Employee Rewards
While there are many types of rewards available, gift cards offer distinct advantages that make them particularly effective for boosting employee engagement. Here are some reasons why you should include gift cards as incentives in your rewards program to improve employee engagement scores.
Allows Flexibility for Personalization
Unlike predetermined merchandise or experiences, gift cards allow recipients to choose exactly what they want or need. This autonomy adds a bit of thrill and intrigue to claiming their reward.
Selecting a gift card becomes a part of the fun. It allows them to try something new without worrying about “wasting their money” or splurge on something they otherwise would have deemed extravagant.
It can also be seen as something practical they can use to help offset financial burdens, such as a grocery or restaurant gift card. Gift cards empower employees to select rewards that are personally meaningful rather than being forced to choose from long lists of pre-determined physical items or merchandise. This flexibility ensures the reward has maximum impact and value for each individual.
Instant Gratification and Full Purchase Power
We live in a fast-paced society. When an employee does exceptional work, it feels good to be recognized promptly. Quick recognition reinforces that they did a positive thing, all while they’re still riding on the high of a job well done.
Unlike point-based systems, where employees must accumulate and redeem points over time, gift cards provide instant value. This immediate gratification strengthens the connection between the rewarded behavior and the positive reinforcement. It also means employees get immediate, full value for their award.
Perceived Value
Studies have shown that employees perceive gift cards as having higher value compared to cash bonuses of the same amount. The “gift” aspect makes it feel more special and less like regular compensation.
Furthermore, gift cards often translate into memorable experiences or desired purchases. These special gestures reinforce positive emotions associated with their achievements.
Familiar and Easy to Use
Gift cards are simple to use and widely accepted, eliminating any potential hassle for employees in redeeming their rewards. This ease of use ensures that employees can quickly and conveniently enjoy their incentives without any added stress.
Cost-Effective for Employers
Gift cards often come with bulk purchasing discounts. This allows companies to stretch their rewards budget further.
Additionally, many gift card providers offer customizable options, such as branding or personalized messages, enhancing the overall employee experience at minimal extra cost. Implementing gift cards as part of a rewards program can also reduce administrative burdens, as they are easy to distribute and track. Overall, the financial advantages and operational efficiencies make gift cards a highly attractive option for employers seeking to maximize the impact of their rewards programs.
How Bonfyre Elevates Gift Card Rewards
While gift cards themselves are valuable, Bonfyre’s user-friendly interface and social recognition features enhance the overall experience. We make receiving gift cards more memorable and engaging for employees. Bonfyre also provides valuable analytics and insights, allowing employers to track engagement. These features help employers tailor rewards programs to better meet employee needs.
Personalized Delivery Methods
Bonfyre offers multiple delivery options for gift cards to employees. Send them their much-deserved reward through the platform of their choosing.
Employees can receive their gift card through Microsoft Teams, SMS, email, the Bonfyre frontline app, or by scanning a QR code and authenticating via SSO. By accommodating individual preferences, Bonfyre makes it easier for employees to receive and utilize their rewards without disruption.
A Vast Selection of Gift Card Rewards
With over 800 gift card options available, Bonfyre ensures there’s something for everyone, regardless of personal preferences or location. Employees can choose from a wide array of categories, such as dining, entertainment, travel, and retail, making the rewards both fun and practical.
No Point Systems
Point systems for reward programs on other platforms can often diminish the excitement and satisfaction that should accompany the recognition of hard work. When employees are required to accumulate points over long periods before they can redeem them for rewards, the immediacy and impact of their achievements are diluted.
This delay can make the rewards feel disconnected from the actual effort exerted, causing employees to perceive the system as less meaningful. Additionally, the complexity of tracking and understanding how points translate into tangible rewards can lead to frustration, making employees feel like they are being nickel-and-dimed rather than genuinely appreciated.
In contrast, gift cards from Bonfyre offer a straightforward and immediate form of recognition that resonates more deeply with employees. The value of a gift card is clear and concrete, eliminating any ambiguity about what the reward is worth. This tangibility makes the recognition more impactful and memorable, as employees can directly see and utilize the fruits of their labor.
Seamless Tax Handling
Nobody likes payroll surprises, even if they’re being rewarded. Unlike other engagement platforms, Bonfyre can automatically deduct employee taxes from gift card rewards. This perk streamlines payroll processing and eliminates unpleasant surprises for employees.
Pre-taxed rewards ensure that employees receive the full benefit of their gift cards without a deduction on their next paycheck.
This means a more transparent and hassle-free reward experience for employees, as they can enjoy their gift cards without the burden of unexpected tax repercussions. For employers, it reduces administrative overhead and potential errors in payroll processing, making the entire rewards program more efficient and compliant.
AI-Powered Recognition
Never miss out on an opportunity to recognize someone who deserves it. Bonfyre’s Culture Coach AI analyzes data from various sources to suggest specific employees for recognition.
With this data, Bonfyre can also provide personalized context. This ensures rewards are timely, relevant, and meaningful.
Cost Savings
Bonfyre helps companies maximize their rewards budget. We leverage our partnerships with global rewards leaders to pass along the savings we receive from bulk purchasing gift cards to you!
As Bonfyre’s reward spend grows, so do the savings. This approach ensures that employers can offer a high-quality, diverse range of gift cards without inflating their budget.
The Bonfyre Advantage: ROI and Beyond
What truly sets Bonfyre apart is its ability to transform gift card rewards from a cost center into a revenue-generating initiative. With Bonfyre’s strategic partnerships with global reward leaders, Bonfyre can offer companies cashback on total rewards spent. For large organizations, this can translate to hundreds of thousands or even millions of dollars in savings annually.
This unique model means that by year one, implementing Bonfyre as a replacement for another vendor is not only delivering a better solution for employees, managers, and organizations, but also generates thousands to millions of dollars in annual savings. The platform essentially pays for itself while simultaneously driving increased employee engagement. It’s a win-win situation that’s hard to ignore.
Moreover, Bonfyre’s comprehensive approach goes beyond just delivering rewards. Its integrated engagement tools, analytics, and AI-driven insights help companies create a holistic culture of recognition and appreciation. This leads to sustained improvements in employee engagement, productivity, and retention – factors that have a direct and measurable impact on a company’s success.
