Why Digital Gifting Is The Future Of Employee Rewards
23 June 2020
In today’s competitive business climate, the game plan to get the best out of your workforce should be well-thought-out and carefully executed. While new ideas to motivate employees are welcome, appreciation expressed through recognition and rewards remains a time-tested strategy.
Memorable and meaningful incentives are the most tangible way to set high-performing employees apart and inspire the rest to keep up. In fact, the world’s most admired companies implement and productivity.
There is a steady increase in access to smartphones and the Internet. The young, tech-savvy population in the workplace continues to rise. As such, companies are compelled to procure and distribute employee rewards in innovative ways. Along with the impending shift in life priorities and habits as a natural result of the global pandemic, companies need to stay relevant and effective in engaging their workforce.
Here are 5 reasons why digital gifting is the future of employee rewards:
1. Digital gifting is a growing trend across all ages
The 2017 corporate study of financial service company First Data confirms the upswing of digital gifts. Annual purchase of digital gifts grew to an average of 6.1 per person from a three-year average of only 4.0 per consumer. In 2019, e-commerce sites have overthrown brick and mortar merchants as the top holiday shopping destination with 54% of consumers choosing online over in-store shopping.
Experts say that the global e-gift market size is expected to reach $1,922.87 billion by 2027, growing at a CAGR of 14.9% from 2020 to 2027. More and more consumers prefer to have digital gift certificates scanned from their phones, requiring a change in the dynamics of rewards distribution.
2. Contactless is the new normal
A Mastercard global consumer study showed that consumer adoption to touch-free payments accelerated in the first quarter of 2020. In the Philippines, roughly 40% of Filipino consumers have turned to contactless payments more often in light of the pandemic. Positive perception on digital payment methods also increased as solutions become equipped with security features like two-factor authentication. For Filipinos, convenience and safety are two of the most important factors in the shift to digital behavior, according to a 2018 Visa survey.
Due to recent events, contactless services became a necessity, not an option. Establishments across the world had to adapt when the World Health Organization (WHO) recommended cashless transactions to fight the spread of COVID-19. Functionalities such as QR code scanning have gone mainstream because these eliminate contact with publicly shared devices like cashier terminals and ATMs are lessened.
Even after the pandemic, there will be heightened awareness on safety and hygiene. It makes sense to allow your recipients to redeem and enjoy their rewards touch-free.
3. Instant motivation is in demand
For certain industries like BPOs (Business Process Outsourcing), employee motivation is the currency that fuels productivity. Despite being one of the most dynamic and fastest-growing industries in the country, high attrition rate is a challenge. Hence, HR teams in BPOs constantly reevaluate factors that influence staff motivation and retention.
In a survey conducted by a global BPO company, recognition (83%) and perks and benefits (65%) are top motivating factors for its employees. Regardless of form factor, these rewards must comply with one crucial requirement—speed. Millennials, believed to comprise 75% of the Filipino workforce by 2027, are known to be the instant gratification generation for their desire for immediate feedback and acknowledgment. Digitalizing lets you distribute rewards in a few clicks through a portal so that these reach employees real-time, right where they are.
4. Data-driven strategies result to authentic satisfaction
Access to big data can help HR teams in developing a rewards program for successful employee retention and engagement.
Digitalization comes with a wealth of valuable information. With the help of tools and apps, employers can easily extract data on how, when, and where employees use their rewards. They can even generate customized reports to show the metrics that they want to track and improve. Shifting to a digital rewards system is key to making insightful decisions about what makes your employees happy.
5. Digital gifting offers bigger bang for the buck
Fire up the web and you’ll see millions of gifting options from retailers who shifted to digital. And why not? When it comes to employee rewards, digital eliminates rent for display and storage as well as manhours for packing, sorting, and tracking. At the click of a button, rewards can be sent directly to employees’ devices. No paperwork needed. By going digital, you save space, time, and money — plus, you help save the environment, too.