Prepaid Rewards Have a Positive Effect on both Employee Recognition and Retention

Prepaid Rewards Have a Positive Effect on both Employee Recognition and Retention

Prepaid Rewards Have a Positive Effect on both Employee Recognition and Retention

A recent article explores an interesting study on millenials and Gen Z workers:

Although the job market hasn’t been better in 50 years, a national online study from daVinci Payments of over 600 employees from 18 to 38 found that Gen Z and Millennials are feeling dissatisfied and underappreciated at work. Forty-three percent of Millennials surveyed said they planned to leave their job within the next two years. Even more disenchanted with their current position are Gen Z workers, with 78% saying they plan to leave their current job within two years.

These two generations crave recognition on the job, the study finds. Appreciating these employees for their work, even in small ways, provides them with personal fulfillment and provides employers with employee retention. Millennial and Generation Z employees don’t feel their hard work is being recognized; 50% of employees surveyed feel that management does not recognize strong job performance.

But one thing they crave is recognition, according to a new study. And just about anything will do – 70% said they would stay at their job for another year if they were able to receive three $50 prepaid gift card rewards over a one-year period. And an even higher percentage (79%) said that an increase in recognition rewards would make them more loyal to their employer.

Providing employee’s an incentive or reward for a specific action(s) is a great use of prepaid debit cards. Most cards of this type would be commonly known as a gift card which are readily available in most retail stores. For those needing a large amount of cards, there are firms that specialize in this business.

These cards have been used to motivate employees to take the extra step/action they may not have chosen to do if it weren’t for the incentive. Not all incentives need to be sizeable in dollar amount or even occur on a recurring basis. Employee’s notice when their employer does something out of the norm or continues to reward a specific desired behavior.

What type of recognition and rewards are Millennials and Gen Z interested in?

In a few words: prepaid gift cards. Millennials and Gen Z expect to be recognized financially and will do just about anything for them.

  • 75% prefer prepaid cards that can be spent anywhere
  • 75% would use a substantial reward for everyday or emergency needs
  • 22% would use a reward for a unique experience

And here are some of the thing they’d be willing to do for the gift cards:

  • 70% would use three or less sick days for a 75% prepaid reward
  • 87% would refer a job candidate for a $100 prepaid reward
  • 90% would participate in a wellness program for a $25 prepaid reward

We’ve come a long, long way from a clap on the back and a “good job” from your boss.

Depending on the size of the company and number of employees, managing a reward and recognition incentive program can be a large task depending on the criteria that is collected to make the decision whether to reward or not. Often firms with a large employee base will utilize an outside firm to manage some or all of the process.  In the United States, the employee and partner incentive prepaid card market in 2018 was $13.8 billion dollars, showing that many employers are already rewarding employees using this method.

“The vast majority of young workers in the U.S. are feeling a strong level of dissatisfaction with their employers, resulting in an urge to seek more rewarding and validating work outside of their current organization,” said Rodney Mason, daVinci’s Chief Revenue Officer in a press release.

“While some employers may see these young workers as disloyal or unmotivated, the truth is that they can be turned into an organization’s most enthusiastic and valuable resource when shown appreciation for their work and rewarded in the right way.”

Overview by Sue Brown, Director, Prepaid Advisory Service at Mercator Advisory Group

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