“If managers just increased their praise and recognition of one employee once a day for 21 business days on a row, six months later, those teams as opposed to control group had a 31% higher level of productivity.” Ref: HR Zone.

The process of reward and recognition doesn’t have to be complicated or expensive. A certificate or thank you e-card, combined with either a voucher or voucher cheque, can be presented to a recipient is a simple and quick reward mechanism that doesn’t cost the earth.

It is for this reason that many companies are choosing vouchers as their preferred gift for recognition schemes. They are as simple as cash to deal with, yet far more memorable.  An alternative to vouchers is voucher cheques. Which provide all the  benefits of vouchers but allow the recipient to choose the voucher which best suits their taste.

Both rewards are simple to set up and process, and partnered with a recognition scheme could see your company’s productivity substantially increase, making perfect business sense.

Our research found that a private sector organisation is much more likely to start rewarding staff relatively early on in their career, with one leading high street retailer, for instance, rewarding staff after just three years of employment. In contrast, the public sector begins to provide rewards after 10 years of service at the earliest and in some cases is not recognising employee loyalty until 20 years have passed.

It is also interesting to observe that the values of rewards vary significantly amongst the organisations surveyed. Looking at rewards for 20 years of service, which the majority of public and private sector organisations recognise, the public sector in some instances set the value of a reward at £200 while a leading high street retailer offers reward values of £1000. Similarly one chemical and business supplier provides rewards worth £30 for 10 years of service while, for the same period, a transport company says thank you with rewards of £250 and a high street retailer £500.

Recognising employees, taking the time to thank them and show appreciation for their efforts is a crucial element in encouraging them to stay with an organisation and build up their knowledge and skills so they add even more value to the organisation over time. Feelings of dissatisfaction will come to the fore and staff turnover may increase if a long service scheme is poorly researched, offers derisory amounts or only starts rewarding after 25 years of service.

How to make it memorable

In order to keep awards exciting, mix them up and ask employees what they prefer. The same rewards over and over again can become mundane. Give your employees the opportunity to choose a gift that they truly want and value, you can be sure that the source of their award will be remembered long after receipt of their gift.

The Voucher Shop

It could not be easier than with The Voucher Shop, we save you time and effort, ensuring you never miss an important anniversary date whilst giving your valued employee an award that offers them freedom of choice that they will definitely enjoy.

Our self-managed award service includes:

• Bespoke or standard award presentation packs
• Personalised voucher cheques to whatever value you require
• Regular statement of awards issued, together with their associated value
• Maintenance of an awards diary – we’ll keep track of staff joining dates, who is due an award and when

Asking participants a range of questions from what benefits they had access to and what benefits they would ideally like to receive. A third of respondents had access to a voluntary benefit of some sort, however when asked what benefit they would like to receive if given a choice the most popular answer was help through high street discounts – a staggering 59%.

With 3 reward mechanisms specifically designed to deliver retail savings, The Voucher Shop has a solution to suit all organisations and employee tastes. Choose from…

 FlexVouchers

FlexVouchers are used by some of the UK’s best known employers as part of a salary sacrifice scheme that gives their participants fantastic choice and savings at high street stores. By committing to purchase a particular voucher or card type from The Voucher Shop’s extensive range each month (via a salary deduction) participants can save substantial amounts on their household shopping.

• Up to 15% savings at high street retailers
• Minimal administration
• Security & reliability
• Professional unbiased advice on voucher selection
• Delivery options – home & workplace 

FlexBank

As an employer that cares for their staff you can supply your employees with a portal to help them manage their monthly expenditure efficiently, and save up for seasonal extras such as Christmas or holidays. Our online flex calculator works out the savings available on specified vouchers / gift cards, giving employees control over what they save and spend.This can be accessed anytime to order from over 45 voucher and reloadable gift card types at discounted rates. You still receive the same fast, efficient service from The Voucher Shop but Flexbank offers even more.

•  UP to 15% savings at high street retailers
•  Choice, Employees can choose when and what vouchers they require
•  Mininmal administration
•  Security & reliablilty
•  Delivery options – home & workplace

Spree

Employees commit to a monthly salary deduction which is loaded onto a Spree card that can be used  anywhere that accepts MasterCard®, offering an obvious alternative to current flex voucher options. Employees are free to spend as much, or as little, as they want from their Spree card at any of our retail partners and, most importantly, reap the benefits of a range of discounts on offer. That means more money in the pocket for them and more contented staff for you.

• Savings on spending at over 40 retail partners
• Pre-paid MasterCard
• Can be branded to your company’s benefits scheme
• Re-loadable – valid for 2 years
• No hidden fees or additional charges as with some cashback card products
• Higher cash back rates than all known competitors
• Shopping made easy without the delay of waiting for paper vouchers
• Universal acceptance
• No cardholder qualification
• Balance enquiries via web or IVR 24 x 7
• Balance can be spent anywhere that accepts Mastercard offering additional flexibility

While these new methods offer enhanced efficiency, better data tracking and the potential to leverage new mediums of communications more effectively, we cannot forget why incentives are offered in the first place; to make the emotional connection of personal reward so that recipient feels appreciated and encouraged to continue to perform. The traditional paper voucher always worked well in this respect because it provided something tangible, a decorative reward that did more than just offer a cash alternative; it said ‘thank you and well done’. When making the switch to newer forms of reward vouchers, failing to capture this sentiment could mean that a great deal of the impact is lost.

Striking a balance, then, between offering modern versions of gift cards and vouchers and demonstrating effectively that the reward still ‘rewards’ will be important in 2011. A combination, perhaps, of electronic delivery, which has the added benefit of efficient recording and tracking of data, together with a presentation mechanic where none of the trophy value or sentiment is lost but actually enhanced, should be what employers are seeking.

At The voucher Shop we have a unique offering that combines electronic delivery with personalised greetings cards and we expect to see a lot of businesses embracing this winning combination over the next 12 months as they continue to seek the latest in innovative methods to reward and engage staff.

A recognition scheme, for example, may offer low value, token rewards which employees can win if nominated, as these are one off and low cost vouchers are probably best suited. Whereas if an employee can earn for sales on a regular basis, and they are traditionally a high performer, a card would be better suited, as they can save up their reward with a view to spending it on a larger value item. They could even top up their account with their own money to achieve a dream item. The card acts to reinforce the message of how they earned the reward every time it’s used.

There will always be a place for paper vouchers because they do exactly what they say on the tin. Vouchers are easily understood and are liked for their ease of use – there is no need to go online or to ring a hotline to check the available balance. They are as close to cash as you can get, but with the added benefit of not being ‘swallowed up’ in the costs of everyday living. Vouchers are more memorable and have a greater impact, making them an effective tool to incentivise or motivate.

Cards are simply a modern twist on vouchers and appeal to those who prefer a quick and easy transaction at the till, as opposed to a short wait while vouchers are counted and verified. However, vouchers will always have a place in the market as they can be purchased by organisations at a discount, therefore offering a better than cash solution which is cost effective and offers high perceived value to the end user. Over the next few years we do believe we will see the introduction of more card based solutions but vouchers will always have a home in the incentives arena.