There seems to be a misconception when it comes to reward gift cards. Reward gift cards are attractive to corporate buyers because they are easy to purchase, easy to deliver and administer, and they can choose from a variety of brand name products.

However, what corporate buyers may fail to realize is that 10% of gift cards are not used at all! Another 25% are given to family or friends. While gift cards may seem attractive at first, they actually contradict the concept of a recognition program. A majority of employees that receive gift cards for recognition can’t even remember what they used it for. Therefore, there is very little return to an organization in building loyalty, increasing productivity, or increasing retention.

Organizations may say, “But that is what the employees say they want.” This may be fine, but in conjunction with rewarding employees with gift cards, organizations should look into something that evokes the emotion of a symbolic award; something that is memorable, personal, and has a high perceived value.

So instead of rewarding with a $150 gift card, try a $25 gift card and an award. By rewarding employees in this manner, organizations will see an increase in performance, increased employee retention and loyalty, and ultimately, an increase in profitability.