Australia is one of the largest economies in the world, with over 2.4 million actively trading businesses, employing 12.67 million people in Australia. They have a local, national and international consumer clientele bringing in billions of dollars in trade. Maintaining healthy customer and employee relations forms a crucial part of the growth of corporations. Employee rewards programs are the fastest and easiest mode to achieve maximum employee engagement in offices as everyone seeks appreciation and compensation for their work. A Universal gift card is a popular choice among corporations and businesses as the card is in different forms and denominations.
What Are Gift Cards?
Gift cards are forms of payment that individuals can use to make product purchases or access services in restaurants, gas stations, retail stores, therapy centres and more. The company or the business loads money onto the gift cards and distributes them to the employees who can spend them in accepted locations.
Types of Gift Cards
Gift cards come in open-loop or closed-loop format. The first thing that any company must do is decide which type of gift card program they want to offer the employees.
Closed Loop Gift Card
Closed-loop cards work only in particular stores or brands to which they have been assigned. For example, employees can redeem the gift card for a specific restaurant only in that location or franchise. They provide limited access to the employees to redeem the amount but are helpful to gain the best services or products from these organizations. For example, people can redeem a Starbucks or an Amazon Gift Card only from these retail stores.
Open Loop Gift Card
Open looped gift cards generally have brand associations with credit card networks like Mastercard and Visa. Employees can redeem such cards across various brands that accept the card brand. For example, companies can offer open looped gift cards of specific amounts with a Visa logo to the employees who can visit any store, restaurant or centre that accepts Visa credit cards. A universal gift card is very similar to an open-loop card. It provides the flexibility to use the card wherever the employees choose.
Gift cards can also come in physical and digital forms.
Physical Gift Cards
Physical gift cards are available as plastic cards with secured gift codes that the employees can swipe at the store and avail themselves of the cash reward. Many universal gift cards are available as physical cards that companies can distribute as holiday presents or reinforcements to their employees. They provide a personal touch about the present that fosters greater happiness, engagement and employee satisfaction.
Digital Gift Cards
Digital cards do not have physical forms and are available online. Companies can send unique gift codes to the employees, which they can redeem with different online retailers during their purchases. Larger franchises and restaurants accept both physical and digital gift cards providing convenience to the customers for any transaction. They also speed up the payment process, and the employees can avail themselves of the benefits from their homes.
Benefits of Offering Gift Cards to Employees
- A gift card is a good substitute for cash or credit payment for employees as an incentive.
- Gift cards are the most convenient, appropriated and appreciated gifts for holidays, rewards, fun activities and special occasions in an office.
- Companies can avail them on a large scale without spending time and effort buying physical gifts.
- They are flexible and cost-effective and give the employees the ability to choose their reward.
Research shows that non-tangible rewards like universal gift cards are highly effective as cash-based incentives to increase sales, productivity, happiness, brand value in the market and the office.