Employee retention is a challenge for most organisations – even major leaders can struggle to retain top talent. In fact a Willis Towers Watson study[1] showed that staff turnover has increased significantly in recent years, adding that particular attention needs to be paid to highly-trained individuals who leave in search of a new venture. The cost to replace such an employee can easily exceed double their annual salary[2], so it pays to acknowledge the massive value they bring to your organisation.

Employee recognition = retention

Every business has its own strategy for retention, but there’s one common element that has been found to work across most businesses and industries: employee recognition.Countless studies have revealed that employees highly value being recognised for their achievements, making it a far stronger motivator than an impersonal financial reward. While once upon a time this may have been in the form of an awards presentation or a bonus cheque at the end of the year, 2018 has a new approach. The digital age will continue to assert its influence on employee rewards and recognition programs, where we will see an increased use of social platforms, employee benefits portals and digital gifting across the board.

Enter the digital gift card

Digital gift cards in particular have increased in workplaces, where executives and human resource managers are looking for ways to meaningfully reward and recognise outstanding work and nurture staff culture and loyalty.

But it’s more than a ‘nice’ thing to do for your employees – it also makes good business sense. Digital shopping is well and truly embedded as an ever-present part of the consumer’s everyday existence, with online sales exceeding $20 billion in 2016[3]. In Australia, the gift card ecosystem totals $4.5 billion, with customers ranging from individuals, to small businesses managing annual corporate gifts, through to multinational corporations placing bulk orders for staff reward programs, sales incentives, birthday gifts or even farewell presents.

While the more traditional, paper or plastic gifts are hardly a new phenomenon, electronic gifting offers employers an uncomplicated, convenient and instantaneous way to manage employee rewards that can be tailored with specific imagery and messaging that relates to the individual. Think digital gift cards emblazoned with an employee’s top sales achievements for the year, or the name of a major company project they have successfully managed or supported.

“Reward programs with digital gift vouchers are proving to be a lucrative employee motivator,” says Matt Hoggett, Co Founder of eGift Card company Prezzee.

“Not only are they easy to budget for, but they also allow managers or staff flexibility to pick and choose which retailer to spend their gift card with and it alerts the recipient of upcoming expiry dates via electronic notifications.”

According to a recent study conducted by the Incentive Research Program[4], employees also prefer non-cash rewards such as a digital gift card as it ensures their wins and celebrations aren’t absorbed into non-luxury, household expenses.

Shout it from the rooftops

Social media platforms such as LinkedIn and Yammer also make up an important part of many recognition and reward strategies. Savvy employers will use their bespoke platforms to shout employee achievements from the rooftops, while also integrating some of the best functionality social media has to offer, such as the ability to like, share and comment on others’ achievements within an intranet system.

Implementing workplace policies like these, that acknowledge an employee’s contribution and loyalty, will help boost employee retention and overall morale. After all, one of the most effective ways to lower the cost of turnover is to lower the rate of turnover. So focus on fostering an engaging, rewarding work environment that inspires employees to stick around and do their best work while they’re on your team.

[1] www.towerswatson.com

[2] www.americanprogress.org

[3] www.afr.com

[4] theirf.org

Prezzee an online marketplace providing an innovative digital Gift Card solution built to change the art of gifting. Prezzee was designed to solve the problem of sending Gift Cards in the corporate world, enabling simple bulk or single sends, instant delivery and co-branding options. Prezzee also operates in a consumer market to alleviate the problem of lost or misplaced plastic Gift Cards when you need them the most. With Prezzee, you can buy, send, store and redeem digital Gift Cards all in a few seconds
Prezzee https://www.prezzee.com.au
Prezzee Business https://www.prezzee.com.au/business