Employee gifting, rewards and incentives are fundamental to keeping your workplace engaged and productive.
Research shows that Irish companies who are implementing an employee benefits program experience a 14% increase in workplace engagement, productivity and performance. It also found that a 15% improvement in employee engagement can result in a 2% increase on business margins.
Effective Rewards and Incentives for Employees
But for employee rewards and incentives to be effective, they need to offer real value to the person receiving them. The IRF recently found that employees (specifically those working remotely or hybrid remotely) ranked a digital prepaid gift card as the number one reward or incentive they’d like to receive from their manager, ranking it above an additional day off, a weekend away for two, and even the option to receive a luxury gift.
The preference for flexible rewards and incentives is consistent with research elsewhere and highlights the importance of choice when selecting tangible gifts for your workforce, whether it be for Christmas, birthdays or work anniversaries.
In this article, we identify the signs that your employee benefits program is outdated, how you can improve employee engagement with digital rewards, and the benefits of doing so.
5 Signs It's Time to Switch to Digital Employee Benefits
1. Time-Consuming HR Tasks
Traditional, paper-based processes for managing employee benefits can be incredibly time-consuming. HR managers often find themselves drowning in administrative tasks, from manually processing forms, handling paperwork and then posting out physical plastic cards to employees.
2. Delays in Card Distribution
Posting out physical cards to employees often results in delays stretching from weeks to months. As a result, frustrated employees experience prolonged waiting times for rewards, incentives and gifts.
3. Bad for the Planet
Physical cards create 5.7 million tonnes of plastic waste every year and they take up to 500 years to decompose. It’s time for Irish companies to move away from unsustainable methods that are bad for the environment.
4. Risk of Misplaced Cards
Employees frequently misplace physical cards, leading to disruptions in accessing gifts and rewards. Lost cards also require reissuance, further adding to administrative overhead costs and employee dissatisfaction.
5. Global Reach and Complexity
In today’s global workforce, mailing physical cards internationally adds complexity, cost, and time. Digital solutions overcome geographical boundaries, ensuring instant access to benefits for all employees, regardless of their location.
62% of Irish Employers Are Worried About Retention
According to Gartner, global employee turnover is forecasted to be 50–75% higher than previous years, exacerbated by the Covid-19 pandemic. Hays Ireland also conducted a study that revealed 62% of Irish employers predict that employee retention will present the greatest internal challenge to their organisations over the next 12 months.
One of the reasons for this increased workplace disengagement is the lack of efficient employee benefits, rewards and incentive schemes. So, let’s dive straight into how you can improve your employee engagement by switching to a digital rewards platform.
How To Use a Digital Employee Benefits Platform
1. Attract New Employees
Employers can stand out from the crowd by updating their employee-value-proposition to include that digital rewards are part of the employee experience. Deloitte research found that 49% of Irish people are switching to sustainable consumerism which means digital gift cards are leading the way when it comes to preference for gifts, rewards, and incentives.
2. Avail of Tax-Free Savings for Employers and Employees
The market for gift cards in Ireland is expanding rapidly as a result of the Small Benefit Exemption scheme enabling employers to give all employees up to €1,000 per annum, free from taxes to both the employer and employee. With a market size approaching €800m, on average, spending on gift cards in Ireland is up to 66% more per person than the European average!
3. Give Employees the Gift of Choice at Christmas
Christmas is the perfect time to show employees how much you appreciate their hard work. By switching to a digital-first solution for employee gifting, you can order and distribute prepaid digital gift cards (in bulk) for your entire team in seconds with little hassle and zero delays. What’s more, these digital cards can be used anywhere in the world that accepts Mastercard!
4. Reward and Retain Loyal Employees
Rewarding and incentivising hard-working, loyal employees is key to retention. By monitoring employee’s achievements and milestones, HR managers and CEOs can distribute timely, flexible digital rewards that people want and will value. Not only will retention increase by implementing a digital rewards system, it will also boost workplace morale and productivity.
Increasing Employee Engagement with Digital Prepaid Gift Cards
Digital prepaid gift cards are a powerful tool for enhancing employee engagement and retention. They offer flexibility, eliminate hassle, and align with tax-efficient gifting schemes. By switching to digital solutions such as CleverCards, Irish companies can create a more attractive and rewarding work environment and meet the preferences of today’s workforce.
Give the gift of tax-free CleverCards to your team this Christmas. For more information, get in touch with our team filling out this enquiry form: