We’re tired of dancing around it: Cash is a garbage employee reward
Cash is a garbage employee reward. It’s been said, it can’t be unsaid. I can, however, explain why we say that.
Cash is sort of like coal
Cash isn’t scarce, so it isn’t special. I’ll use an example to illustrate. Cast your mind back to the days when coal used to get delivered on a lorry. The coal man comes, and because Mrs Smith found Derek the coal man’s lost dog last week, he gives Mrs Smith some extra lumps of coal for the month.
Do you think Mrs Smith is going to treasure those extra bits of coal? Will she put them up on the mantelpiece, fondly remembering that time Derek Mortimer gave her some extra coal? Or, will she say, “thank you, Derek, that’s very kind” and throw them into the pile with all the other lumps?
We both know it’s the latter, and that’s why cash doesn’t work as a reward. Cash for labour is a pre-existing transaction between you and your staff, and handing out extra cash only dilutes that transaction.
Cash is stressful
One of the single greatest sources of stress for everyone is money. This isn’t limited to low-earning employees either; a healthy glut of people earning above £50k a year find themselves in some financial agony every month.
When you reward exclusively with cash, you’re trying to employ one of the greatest sources of stress in modern life as a reward. And, as we pointed out earlier, we’re terrible at dissociating transaction cash from reward cash.
Non-cash employee rewards become trophies
Not every trophy is actually a trophy. Some trophies are memories of a nice meal, some novelty tea towels, new walking boots, a television or a certificate. Non-cash rewards feel “earned,” and become trophies of achievement.
For example, imagine you use a gift card as an employee reward for making a particularly effective promotional deck that wins new business. They use the card to buy themselves a Bluetooth speaker for their kitchen. A friend is over for dinner and says to your employee, “I like that speaker.”
The difference between a trophy and a cash purchase is how your employee responds to that compliment.
If it’s a trophy, “Thanks, I got it through work for winning us new clients.”
But, if it’s a purchase, “Thanks, got it off Amazon.”
If you want your rewards to be impactful, you want your staff to see their rewards as trophies. Trophies can be traced back to individual achievements, driving home the positive emotions and associating work victories with personal joys.
What actually works for employee rewards
Give your employees choice. Let them pick a reward at a corresponding value to their effort. Maintaining a catalogue of rewards in-house is an absurdly complicated task, so it’s best to outsource the effort.
Gift cards, vouchers or online codes are the easiest way to do that. You can easily reward at a cash-value without having to actually use cash, and employees can choose something that makes them happy.
Their items, or experiences, will be easily compartmentalised into trophies because they were earned through work but not purchased through cash.
Christmas gifts for employees that won’t get re-gifted or binned – 25 great ideas and 5 really bad ones
It’s time to think about Christmas gifts for employees, because Christmas will be here before you know it. Whether you’re counting sleeps until the 25th, or trying to figure out what to do, it’s coming all the same. And with Christmas comes the expectation you’ll organise some Christmas gifts for employees.
So, just for you, we’ve got 25 great staff Christmas gift ideas that won’t find their way to the bin or end up re-gifted to someone’s least favourite cousin. And, for a special treat, five really bad ideas you need to avoid at all costs.
1. Gift vouchers
Simple and easy to combine with a thank-you note, vouchers are can be unfairly called a ‘lazy’ option. But the reality is that the only laziness is in presentation.
Put some effort in and make a fanfare of the occasion. Give your staff a few ideas on how they can use them, drive home the excitement, and make a fuss of all the choice the vouchers offer.
2. Gift cards
Gift cards function almost exactly like a voucher, but with some key advantages.
You can get them branded to your company’s look so they’ll be more effective at generating gratitude. They also often come with an online option. That could be direct online spending, or an online exchange to trade the funds for another selection of gifts.
3. Wine tasting at home
For plenty of our staff, a bottle of wine over Zoom with friends and family has become a weekly staple. One way to keep it fresh is to try some new wines (or beers!) together. Companies like Laithwaites and Virgin Wines offer at-home delivery services that make it possible to sort out some casual wine-tasting at home.
4. A big night in
With so many of us making the most of the great indoors since lockdown, we’re noticing a few more charges from Just Eat and Uber Eats on the monthly bank statement. A family-sized voucher or gift card for a home delivery service gives your staff one big guilt-free night in.
5. Friday night bingo, or a quiz
Normally you’d have a big Christmas party at the end of the year, but as we know now, that’s off the table. Most of the clients we’re talking to are cancelling their Christmas do, but it doesn’t mean you can’t have a little event. It won’t be the same as a big do, but a big end-of-year company quiz with some big prizes would be just the thing. Get everyone together, have some fun, and take the chance to thank everyone for their work through the year.
6. Active gifts
Something for the lockdown fitness promise that became a New Year’s Resolution. Whether it’s a new bike, running gear, or yoga equipment, there’s plenty out there for the people trying to make a change in 2021. There’s no better way to give them a head start on their goals than gifting them a leg-up with the right gear. Halfords and Sports Direct make it easy for someone pick up gear for cycling, running, football and more at reasonable prices.
7. Wholesaler memberships
A membership to a wholesaler like Costco could save staff an enormous amount of money on bulk household items. Litres of toothpaste isn’t exactly a ‘Christmas-y’ thought, but your employees with families will be grateful. Especially during the winter seasons when they’re entertaining a houseful of guests. They make helpful and well received christmas gifts for employees.
8. Special coffee or tea mugs
The UK drinks more than 60 billion cups of tea every year. That’s more than enough cause to know special mugs make a great gift.
9. Digital reward codes
Reward codes are sent over sms or email, then redeemed online. They make more sense than gift cards or vouchers for more “online” staff.
To give them a more personal touch, spruce the delivery up with personal messages of appreciation.
10. Flexibility
The Christmas period is hectic, and with so much uncertainty this year that’s not going to change. The cash might not be there to fork out for a load of gifts for staff, but just being flexible with hours during the festive period could be as welcome as a fancy bottle of wine.
11. Tote bags
We all want to make less waste, but that means lugging more containers about with us.
Rucksacks aren’t always a chic choice, but totes are. A quality sustainable fibre tote is a great gift for someone sick of dragging a tatty Bag for Life around.
12. Great books
Books are often a byword for boring gifts. But that’s because they’re often just the latest vapid celebrity biography, or a tenuous link to a hobby.
Put some time and thought into a good book and it will be a fantastic gift. it shows not just that you’ve thought about someone, but that you actually know them well enough to pick them out a great book.
13. Luxury gift cards
We have already mentioned gift cards. But special gift cards for high-end shops like M&S or John Lewis are different.
Even the most dour employee can find something delightful with a luxury gift card. Only being able to get something luxurious makes them great Christmas gifts for employees.
14. Recognition
For some employees, offering your heartfelt thanks would go much further than any cash-value item. Knowing their efforts are valued and noticed as they head into a Christmas break does as much for morale as rewards might.
15. DIY vouchers
Spending more time at home means spending more time with those little jobs we never quite get around to doing. Things that you used to be able to ignore, but now you’re looking at them all day you can’t get them out of your head.
That door that doesn’t close quite right, that broken fence panel, or that patch of unpainted plaster slowly driving you crazy. Gifting vouchers or gift cards to places like B&Q, Homesense, Wickes is just the thing to help them get those little jobs sorted out over their Christmas break.
16. Donation to a charity
You really need to know the room before making a call like this. People might feel let down, or maybe even a bit patronised.
But if you look at the office and can’t imagine what to get for your socially-conscious millennials, a donation works. As long as it speaks to a cause they’re invested in – which means knowing them well enough to make the call.
17. Custom print cushions, pillows or luggage
Submit someone’s picture, or maybe a picture of their pet, and it becomes a print of the item. That could be pillows or cushions.
But the best is luggage – there’s no debating who a suitcase belongs to when your face is all over it.
18. Wireless shower speakers
Ideal for anyone that really can’t go a minute without a bit of stimulation. Not even for the duration of a shower. Also ideal for an employee that likes a long soak in the bath with a good podcast.
19. Pocket-friendly powerbanks
Always running out of charge is annoying, but so is carrying around a giant power bar all day.
A pocket-friendly power pack helps your electrically-challenged employees stay online. Without taking an unwieldly battery everywhere.
20. Multi-tools for outdoorsy types
Our outdoors types love a multi-tool. Especially the specialised ones for cyclists, climbers, woodsmen and more.
Depending on what your staff get up to in the outdoors, there’s a quality multi-tool out there.
21. Slippers for indoorsy types
Our indoors types, by contrast, love a good pair of comfortable slippers. Everyone loves a really comfortable pair of slippers for those cold nights in.
22. Infusion water bottles
Supplying staff with their own refillable, non-toxic bottles benefits you and your staff. They cut down on waste, saving money on disposable cups, and they help staff stay hydrated during the work day. Infusion bottles also let staff stick a bit of citrus fruit of a tea bag in for a healthy flavoured drink.
23. Speciality coffees
Caffeine is an essential office supply. A specialty coffee selection is a great gift for anyone that always says “yes” when the barista offers them the special blend.
24. Streaming services
Not unlike the Just Eat and Deliveroo charges piling up, the standing orders for streaming services are adding up as well. It would be a nice gesture to help keep your staff entertained while they’re at home.
25. Adult learning classes
For someone that’s always wanted to speak Spanish. Or wishes they knew how to paint with oils or create pottery.
They’re fun and personal. And they let your staff do something personally fulfilling and enriching outside their work.
[Edit this to include that there’s loads of time at home now]
Five Christmas gifts for employees to avoid at all costs
It’s the thought that counts, unless you’re thinking about really bad gift ideas. Or even worse, if you don’t think about someone at all. Steer clear of this stuff if you want good Christmas gifts.
1. Being forgotten
Forgetting to buy some employees gifts is a miniature morale crisis. That goes double if they’re remote or mobile. They’ll already have their guard up about not being in the office, and being forgotten amplifies that feeling.
2. Cash
Old reliable, and reliably boring. No one hates having more money, but cash doesn’t make a great Christmas gift for employees. Especially in companies where year-end bonuses are the norm for performance targets among sales teams.
3. Cheap and boring food and drink
Anyone can walk into a supermarket and buy themselves a bar of Dairy Milk. It’s not interesting, thoughtful or special. If you’re so out of ideas you’re thinking about buying someone a Toblerone, just get them a decent gift card.
4. Gag gifts
Sometimes they work, but it’s best avoided unless you really know them. That goes double if you’re the boss. Remember that as an employer that you’re “punching down.” You’re in a position of authority or power over your staff, and what seems harmless to you can come off as a dig on someone’s work, or their position in the company.
5. Self-help books
The Secret and Rich Dad, Poor Dad might have completely turned your life around. but don’t try to pressure other people into “improving” themselves. It’s incredibly patronising and not exactly exciting at Christmas.
Four simple guidelines on Christmas gifts for employees
Keep a few ideas in mind when you’re looking to gift to stay on the safe side.
1. Be fair
It’s a gift, not a bonus. No one should feel hard done by when you save the lion’s share of your gift budget for the best performers.
2. Be consistent
Pick a price range you’re confident you can stick to next year too. A big blowout one year and little the next isn’t great for internal credibility, and it gives off uncomfortable boom/bust vibes.
3. No company logos
We love employee engagement but we don’t want to see staff turned into walking billboards for their company. Let your employees enjoy their gift without having to sport the corporate logo everywhere they go.
4. Keep HMRC happy
Keep in mind the value of what you gift is subject to tax regulations. Especially if the cash-value of your gifts adds up to more than £50 per employee over the year.
Talk to your finance people and make sure you keep everything square with the tax man when gifting.
Remember: There’s no need to stress about it
If you’re stressing about it, let me stop you right there. Just get the basics right. Put the effort in, try your best to anticipate the tastes of your employees, and act in earnest gratitude. Hit those notes and you’ll be just fine.
And if you’re still not sure, get in touch with us. We’d be happy to talk you through a few options.
Or read about the Christmas gift options available through Love2shop here.
Explained: Why your cash only sales incentives never produce consistent results
The cash-based sales incentive is the archetypical “throw money at the problem” answer to sales teams with flagging revenue figures, but the majority of cash-based incentive programmes end in diminishing returns and a great deal of head scratching about why good old-fashioned money isn’t producing the results companies want.
The truth is that cash on its own, as a motivator, isn’t as inherently linked to motivation as employers, or even employees, would like to think it is.
Among the variety of reasons that these cash incentive schemes fail, there are four big areas:
Survival through compliance
Many employees don’t want to change their behaviour, but will bend their work to the whims of their company like a tree in the wind. While they flex and sway, they ultimately don’t go anywhere new.
Cash incentives prompt employees to do just enough to meet the prevailing wind’s demand without addressing why their work was underwhelming in the first place, and they’ll inevitably revert to their old habits if allowed.
Lazy use of resources
Cash incentives don’t necessarily improve long term performance, but still a great deal of energy is dedicated to quibbling and fretting about the appropriate amount to spend on cash incentives, and which behaviours to attach them to.
In many cases the cash and energy required to build and maintain an incentive scheme could be better spent improving the company, its culture, work environment, engagement and training.
Incentives aren’t special forever
Excessive reliance on cash sales incentives can be procrastination for addressing performance issues, but pulling the plug can seem an impossible task. The cash incentives can become so commonplace they’re no longer a reward but extra income employees are dependent on, long past the point of any benefit to staff, and employers are left without wiggle room to fix performance and culture problems.
Reinforcing old work habits
What a company chooses to distribute cash incentives in exchange for becomes the de facto set of values and priorities for the sales team; cash incentives for predictable behaviours like meeting revenue targets generate predictable working patterns and stifle creativity.
So, what do you actually need to do to make an incentive scheme work?
Abandon cash
Cash has value, but that value is limited; it’s the same old currency used in the monthly exchange of money for services. As such, cash is familiar and subject to the same anxieties and stresses as the monthly pay packet. A non-cash reward costs less to fulfil, and comes with a trophy value which is more valuable to employees’ sense of job satisfaction than just cash.
Periodically refresh incentives
Don’t let your sales incentives get stale. Change the pattern of rewards, the value of rewards, and the behaviour and outcomes you want to incentivise your employees to achieve. This stops any sense of dependency setting in as well as keeping incentives fresh and interesting.
Reward positive behaviour
Incentivise sales staff for not just getting rewards for the figures on a spreadsheet, but for their holistic role in the company. We’ve spoken before about how to pick behaviours which are worth rewarding in our blog here. It’s possible to create insular, toxic sales cultures which undermine your company’s values with cash-only incentives.
Keep your scheme simple
Make sure what you’re pushing employees to do is achievable and reasonable, and the reward system is similarly built to be as accessible as possible. Roadblocks can make incentives feel unworthy of pursuit, and difficult to access rewards mean employees are less likely to pursue them.
Address your company culture
Cash makes a poor substitute for genuine interest and enjoyment from work. Commit to producing a more hospitable workplace, greater job satisfaction and working processes which counter job dissatisfaction and frustration, eliminating the need to bribe employees to produce results. With this dealt with, it will be easier to effectively employ non-cash incentives for positive outcomes in the future.
Ultimately, cash-only incentives fail, whether it’s at the SME level where they fail to engage sales teams struggling for numbers or at the financial institution level, where they breed toxic money-first subcultures. Sales incentives do still work, but the rewards and incentive structure need to be layered on top of a healthier approach to work and a strong, ethical company culture
Forget the carriage clocks: Long service awards gifts your employees actually want
Many companies don’t have an effective long service awards programme. If they even have one at all.
A lot of long service schemes focus on years of service that don’t even feel achievable for new staff. 10, 20 years of service.
And the rewards for long tenure are often underwhelming for employees that do last decades with the same company.
At the same time, employees still expect to see recognition, and earlier than you think.
Most employees anticipate some recognition for long service after just one year of service.
Knowing you need to recognise staff for long service is one thing. Knowing what works as long service award is something else though.
Employees are individuals. They have broad interests and varied personalities. Employers often find themselves at a loss when it comes to finding loyal service awards that actually work.
Instead of trying to find a single catch-all item which you can deploy for any employee, focus on variety and flexibility. Give your staff the chance to choose.
10 GIFT IDEAS FOR LONG SERVICE AWARDS
1. Experiences
Experiences are a thrilling way to celebrate long serving employees. This could include VIP sporting events, supercar experiences, spa days, skydiving or animal encounters.
2. Merchandise
Merchandise is a big tent. It could include your own products, bicycles, tech, hampers, wine, or watches.
The tricky part of choosing to reward with merchandise is getting the item exactly right.
For an effective long service award, you’ll need to have an intimate knowledge of what an employee is interested in. And know what items in that niche would be valuable to them.
3. Letter of thanks
A letter of appreciation from senior management makes it clear to an employee that their service is noted, welcome, and valued.
While verbal recognition of their longevity in service is important, a physical token can be cherished. It serves as a continual reminder of the employee’s value.
4. Gift vouchers
Paper vouchers
remain a massively popular item for our business clients for almost any reward and gift. Easy to buy, easy to give, easy for your staff to understand.
However, their effectiveness as business rewards can dwindle in some situations. When you’re measuring loyalty in decades, there are better options.
5. Gift cards
Gift cards
have the advantage of functioning like vouchers without worrying about keeping a massive physical stock of paper.
They offer greater flexibility over vouchers in presentation, and in the amounts you want to reward.
6. Digital reward codes
Digital reward codes are simple and flexible.
While you’re trading off a small amount of the tangibility of vouchers and cards, the choice available is unmatched by other options.
Codes make it simple to issue long service awards to remote workers, or international workers. And you always have the option to back it up with a letter, verbal recognition or a certificate.
7. Cash
It’s natural for staff to ask for cash, and it makes gifts easy, but be wary.
Cash is taxed, and doesn’t feel as prized or special as compared to non-cash gifts. Cash is subject to all the same anxieties and stresses as monthly pay, unlike a special one-off gift.
We always recommend staying with non-cash long service awards.
8. Certificates or plaques
A certificate or award is a good physical token of the value of an employee’s longevity.
Whether they stay in the office or go on the mantelpiece, they’re a constant reminder of the company’s positive attitude towards the employee.
9. Travel
Travel is a great way to reward your valuable and loyal employees for long service.
Send your employee off for a weekend city break or a tranquil country retreat they’ve been thinking about for years.
10. Time off
A sabbatical is a great way to reward your longest-serving employees.
It gives them a chance to take a step back, recharge, and even work on some personal projects.
Alternatively, you could offer your tenured employee the chance to work on an deploying an internal project. Something that would be useful and effective but you struggle to find the time to develop.
Over to you
If your head is swimming, it kind of should be. Maintaining a huge catalogue of long service awards is no fun.
Instead of trying yourself, outsource it. Either let someone else manage a reward catalogue, or buy multi-retailer products so your staff can choose for themselves.
