It’s good to give

Gift cards are a one-stop shopping opportunity for today's busy HR teams

There's nothing quite like a gift card to put a smile on an employee's face, especially if it can be used at their favorite retailer. Ranked as the most frequently used type of corporate reward by the Incentive Federation, gift cards have transformed the corporate market for rewards and recognition – from small businesses to Fortune 500 corporations, and everyone in between.

For HR executives, the cards provide convenience, ease of use and administration, a range of options and innovative co-branding and trophy value capabilities. This combination means gift cards hold an important place within rewards and recognition programs, whose very purpose is to promote behaviors without use of compensation. The utility of non-cash rewards is enhanced by the perceived value and visibility of the awards and the buzz created when people receive them.

A high-end, high-performance outdoor gas grill, for example, serves as a positive reminder to the participant of his or her performance (and firm) every time it is fired up, as will the memories evoked by a motivational travel program. Cash, on the other hand, quickly gets mixed in a recipient’s mind with compensation, and usually disappears into the family budget with no direct communication benefits to the giver.

By using stored value cards as part of an ongoing program, where points – or cash value – are added as successive goals are met, gift cards can become a permanent fixture in an employee’s wallet, acting as an effective reminder of the program every time it is used. Friends and family often see award winners use the card, thus invoking trophy value in the incentive.

Offered by major retailers, banks, catalog merchants, department stores, and specialty stores of almost every type imaginable, gift cards can help HR executives empower their organizations through target awards based on demographics, and themes based on communications objectives. By aligning incentive or premium programs with leading industry brands, gift cards can significantly increase the participation in the programs offered.

Here are a few key benefits of using gift cards as corporate incentives:

• Time Savings: The fulfillment of the gift incentive awards requires minimal administration. It's as simple as contacting your suppliers and ordering them. For example, RK Incentives can ship cards within two to three business days.
• Selection: Recipients have a choice of more than 100,000 items in a typical gift card program. Clients can provide recipients with cards or certificates redeemable at a specific retailer or via catalog. Programs that allow redemption through a number of catalogs or retailers may also be developed.
• Cost Savings: The cost of most cards is only the printed face value, and many companies offer discounts on volume orders. Shipment of the cards, replacement of lost or stolen cards and simple customization are usually included in the purchase price. More complicated services, such as program administration or additional creative services, are usually available at an extra charge.
• Flexibility: Gift card suppliers realize that clients who select cards as an award option seek turnkey programs. Overnight delivery, insertion of client correspondence with the cards, special in-store promotions for the program participants and program redemption statistics are examples of some of the services clients request. Gift cards make sense for almost any incentive or premium plan.

Gift cards also include unique customization and packaging opportunities that allow HR departments to leverage major brand names in their marketing programs to maximize perceived value. People prefer choice in their awards, but you can take advantage of those times when you know employees well enough to present a gift card that appeals to their special interests—providing a gift card to a retail bookseller, a national department store chain or even popular mens salons, for example.

Gift cards also provide HR departments with customization options, the simplest of which is a card that's made out to the individual recipient. Some merchants can also put your incentive program's logo or the theme on the packaging itself, or even develop a custom card mailing complete with a specially-designed envelope and backup materials on the program, or a letter from the company’s top executive. Alternatively, you can present the gift cards, with distinct packaging, at a special awards ceremony.

Growing in Popularity

Gift certificates and gift cards are becoming a preferred motivator in both the consumer and business-to-business arena. The Incentive Federation study reports that gift cards and gift certificates were the most popular merchandise reward in consumer promotions (58 percent), dealer incentives (49 percent), sales incentives (59 percent), and non-sales employee awards (62 percent). They build on the strengths of non-cash incentives by offering rewards that are more memorable and can be redeemed for merchandise or travel that recipients wouldn’t otherwise buy for themselves. And they offer the power of choice in that recipients can select the reward that’s most meaningful to them.

The simplicity of the gift certificate, gift card or virtual gift certificate helps HR departments deliver programs in a way that’s both fast and relevant for participants. Planning teams aren't restricted to finding the latest and greatest products, or feeling pressured to negotiate for the best price, delivery options and warehousing costs. These advantages allow more funding to be channeled into the award itself.

And purchasing gift cards is simple, as there are clear fee structures enhanced by bulk discounts and other perks. Turnaround times are mere days as opposed to a year’s worth of planning. Gift certificates and cards are also much easier to store and distribute to winners. They pack flat, don’t require assembly and are never technologically obsolete.

Two out of three incentive programs include at least one gift card offer, and it's no wonder since they represent the perfect vehicle for corporate initiatives of quality, safety, suggestion systems, referrals, loyalty, sales, productivity and more. In sum, gift certificates are a versatile, proven way to spur employees, customers, resellers and revenues.

Rich Killian is President of the Incentive Gift Card Council (IGCC), a strategic industry group within the Incentive Marketing Association. The IGCC educates the incentive marketplace and the corporate community on the benefits of gift cards. Rich is also President and CEO of RK Incentives (www.rkincentives.com), a Florida based incentive company that offers consultancy and discounted fulfillment of bulk orders of gift cards for major retail brands. For more on the IGCC, including its member directory, visit www.usegiftcertificates.org.