I have compiled a list of the top ten reasons to award tangible corporate gifts instead of cash or gift cards and wanted to share it with readers.
10) Present recognition awards at company events to provide public recognition
Public recognition is a proven motivational tool and sends a message to employees that excellent work is appreciated and will be rewarded. Recognition awards can be presented at awards ceremonies in which managers positively reinforce desired behaviors of model employees through public recognition.
9) Corporate Gifts engage employees and inspire them to work towards a particular award
Merchandise awards have been proven to offer emotional engagement and extrinsic motivation to participants who work hard to work towards earning a particular corporate gift. In addition, corporate gifts have been shown to increase employee retention more than cash or gift cards.
8) Tangible awards are reportable and replaceable
Awarding tangible gift merchandise allows a company to track how many employees have earned rewards, when and what they selected as a reward. Unlike gift cards, tangible corporate gifts do not expire and are replaceable if lost or misplaced.
7) Merchandise recognition awards are treated separately from compensation
Lifestyle merchandise award programs are easy to budget and provide recipients with a large assortment of corporate gifts within a single price point. Instead of a cash bonus that is spent and then forgotten, giving merchandise awards creates a memorable experience for employees and employers. Each time the corporate gift is utilized, an employee will remember the reason and experience that surrounded the award.
6) Award recipients with gifts that are appealing to all demographics
By providing a large number of lifestyle awards for recipients to select from, you ensure that there are motivational corporate gifts for members of all demographics.
5) Recognition awards are wanted and appreciated rather than simply needed
Another benefit of tangible award merchandise is that the person will reward him or herself instead of using the gift card to pay for necessities or not even use it at all. Recognition awards present a guilt-free reason for a person to indulge him or herself for a job well done with a great reward.
4) Tangible awards bestow "bragging rights" for recipients
Recognition awards that are quality and name brand bestow "bragging rights" for recipients and have a trophy value among coworkers. Friendly competition can build a recognition program's momentum over time, thus increasing its success.
3) Avoid personal income taxes on award merchandise in many cases
Tangible award merchandise is not necessarily subject to personal income taxes but cash and gift cards are always reportable as employee income.
2) Tangible corporate gifts are easy to budget while providing a large assortment of awards in a single price point
Traditional employee awards tended to include pen sets and jewelry made of increasingly costly metals, making the program cost increase year over year and decreasing the flexibility and appeal of the incentive program. Modern award programs, on the other hand, include tangible corporate gifts usually grouped together by price points, always ensuring an easy-to-budget employee award program with a wide assortment of name brand gifts to select from.
1) Recognition awards keep the cost of the gift hidden from employees
Lastly, gift card and cash bonus gifts necessarily reveal the monetary value of the award. Keeping the cost of the recognition award hidden from employees often results in employees assigning a higher perceived value. Overall, Employees respond more positively to and are more motivated by tangible gifts than cash bonuses or gift cards that are generally regarded as less personal and memorable. With the recent news of collapsed retailers not honoring store gift cards, it should be no wonder why more organizations are deciding to award their recipients with tangible awards as part of their employee award program.