Managing Your HR: Year-End Rewards Boost Morale, Not Nearly As Costly As Thought

Today Managing Your HR published an article examining employee expectations surrounding holiday incentives this year. The new research shows that even a small token of appreciation will go a long way in bolstering employee morale.

The research cited in the article was recently completed by Parago; key findings include:

• Holiday incentives are still not expected: 69% of employees do not expect their employers to give end-of-year rewards or holiday gifts this year, which is the identical response from 2011.
• A little reward goes a long way: This year employees are satisfied with even smaller rewards. 61% of employees said it would take just a $25 prepaid card to meet their expectations, up from 55% in 2011. Additionally, 85% of employees reported that an end-of-year reward of a prepaid card valued at $100 or less would meet their expectations, up from 84% last year.
• Rewards will boost morale: 83% of employees said a reward would make them feel either appreciated, motivated to work harder or more loyal to the company, up from 81% in 2011. 82% of employees said that receiving an end-of-year reward would mean that they had done a great job and worked hard or that their employer appreciates and/or values them, up from 79% in 2011.
• Prepaid cards are preferred: When given the choice of a $50 Visa or MasterCard prepaid card or $50 worth of gift cards as an end-of-year reward or holiday gift, 81% would choose a prepaid card.  When asked about their favorite features of prepaid cards, the majority of employees pointed to the fact that prepaid cards can be spent anywhere the card brand is accepted and at multiple retailers.