As reported recently by Forbes, there can up to five generations working side by side in today’s workforce. Finding the right employee rewards to please such a broad spectrum can be challenging, so here’s 5 tips to help you choose the perfect employee rewards.
1. Give Your Employees Rewards They Value
Trying to please a multi-generational workforce with a single reward can be challenging. And if a reward isn’t fully appreciated by all employees, it’s a waste of money AND potentially a demotivator.
The easiest way around this is to offer plenty of choice. Multi-retailer vouchers and universal gift cards can help provide such choice. One4All, Me2You, and Love2Shop gift voucher and gift cards can be spent in wide selection of popular retailers. Perfect Incentive Card and the Allgo Rewards Gift Card can both be used wherever MasterCard is accepted. Choice empowers the employee to be rewarded in a way they value.
2. Don’t Give Cash If You Want The Reward To Be Remembered!
Cash is great for bonuses, but not to reward employees if you want your reward programme or gesture to be engaging. A US survey by Workspan found that 40% of cash incentives were spent on household bills and other household items, a further 33% could not remember what it was spent on, or even whether they received it, and only 9% spent it on a special treat for themselves. The point is rewards should be, well, rewarding. Separating rewards from employee wages instils a sense of appreciation and recognition.
3. Make Sure Your Rewards Are Tax-Efficient
Receiving an employee reward is pretty satisfying, but paying tax on it can really take the shine off. With top tax rates north of 50% in Ireland, taxable bonuses are often far less than expected. So it’s important to make your rewards as less taxing as possible. In Ireland, the most effective way of ensuring your rewards are tax-efficient is to avail of the Small Benefit Scheme. This Irish Revenue scheme allows employers to reward each employee with up to €500 a year completely tax-free (no employer or employee tax). To comply, rewards must in non-cash form, and only reward per employee per year is permitted.
4. Choose A Specialist Provider
For extra options and service to really highlight your rewards, you need to go to a specialist reward provider, rather than a general retailer who will provide rewards on the side. This has several important advantages, the main one being service – especially during the busy end-of year period, you need a reward provider who will give you a more personal service, and provide rewards in the quantities, locations, and timescales you require. Specialist can also offer advice, branding, personalisation and a choice of reward format from digital to physical, which can make the whole process more rewarding (excuse the pun) for all concerned!
5. Take It Personally
Adding an element of personalisation to your rewards, such as including a seasonal note or letter from the CEO addressed directly to each employee, can really emphasise the recognition element of each reward. Those small inexpensive touches can really bring employee rewards to life. Personalisation is especially beneficial if you’re trying to reinforce a particular behaviour or practice in your organisation. Make sure your employees know what they’re being rewarded for.
For more information on Allgo’s tax-free products, please click here