When using nominal reward amounts in rewarding employees the typical options available to organizations are cash, points, and gift cards. Researchers have conducted many studies on the benefits of cash versus non-monetary rewards—what about points-based rewards? Further research by Dr. Patricia A. Norberg from Quinnipiac University in Hamden, Connecticut, provides insights from which these Top 10 Ways Points-Based Rewards Are Super Meaningful are based.
1. People think about points more often. For example, individuals who receive reward points tend to think about and plan out how they plan to use them more so than reward recipients who receive cash or gift cards do.
2. They’ll even talk about their points more. Think about personal loyalty points you’ve collected. Employees who receive reward points talk about their reward points more often than employees who get cash or gift cards.
3. Point recipients report higher satisfaction levels. Employees who receive reward points report significantly higher levels of satisfaction with their reward than those reward recipients who got cash or gift cards.
4. People receiving points remember how they used them. Employees receiving reward points were significantly better at remembering what they used their reward points for than those recipients receiving cash or gift cards.
5. There’s a higher perceived trophy status with points. Employees perceive points at a higher currency ratio value than associated with cash rewards, making them more meaningful to employees to hold up with pride.
6. Points get redeemed for more meaningful gifts. Studies show that cash gets used for more utilitarian and practical items such as bills and household necessities. Points get used for meaningful gift items that employees talk about.
7. Using point-based rewards encourages greater engagement. Employees receiving point rewards engage more with company reward sites than cash, which appears on pay statements, or gift cards they have to top up to use.
8. There’s greater potential of emotional appeal with points. Point-based rewards have greater emotional appeal to employees than cash. Emotional draw creates intrinsic connection for the employee with their company.
9. Points generate greater social-emotional impact. If you want a rewards program to create better word-of-mouth promotion across employees and higher levels of employee satisfaction, then points-based rewards appears to fit the bill.
10. Nominal points-based reward programs work. By all accounts, points-based reward programs offer an all round memorable, meaningful, and motivational option to consider in your reward program planning.
Recognition Reflection: Has the organization clearly defined the benefits of a points-based reward program to our employees?
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