Employee retention is top of mind for most companies, which makes finding effective employee retention incentives top of mind for most HR professionals.
Thankfully, this doesn’t have to be a guessing game, because new research from Fiserv clearly highlights what works best for any incentive plan.
Tldr; Employees have spoken. A salary alone is no longer enough to keep top talent.
New research highlights that most effective employee rewards for reducing turnover rates are gift cards and prepaid cards that are given throughout the year for different reasons, ideally in increments of $100 or more.
The latest findings in their Q4 Gift Card Gauge reveal what employees actually want when it comes to perks and incentives. Companies can use this data to refine their retention strategies and other employee initiatives. Done right, it can be easier and more affordable to boost employee morale than you might think.
In this article, we'll explore the key takeaways from Fiserv’s research and how they can help shape more effective employee retention programs.
An employee retention incentive is a reward or benefit given to employees to encourage them to stay with their company.
They’re designed to enhance loyalty and job satisfaction while also reducing turnover. Well-structured recognition and rewards can directly contribute to a sense of value and motivation, which is critical for employee engagement overall.
These types of perks and monetary rewards are also especially relevant for companies facing high recruitment costs, since reducing turnover can significantly cut expenses associated with hiring and training new staff.
Assuming they’re purposefully designed and implemented, employee incentive programs can reduce employee turnover while also boosting employee experience, engagement, and productivity.
According to the Society for Human Resource Management (SHRM), employee recognition programs make employees feel valued while also helping to improve retention rates. Well-designed incentive programs can be a significant tool for reducing turnover and boosting employee engagement.
And engaged employees show 21% higher productivity and are less likely to leave their jobs compared to their less-engaged peers.
Fiserv is a global fintech company that polls thousands of US consumers from broad demographics for their quarterly surveys. Their latest Gift Card Gauge offers critical new data on what motivates employees and drives retention.
By using this data, companies can build a rewards system that resonates deeply, encourages loyalty, and helps foster a positive work environment where employees are motivated to stay.
Key Highlights from the Fiserv Report:
Recognition matters: 89% of respondents said that receiving employee rewards or incentives helps them feel valued and appreciated.
Everyone wants gift cards: 86% of respondents agreed that gift cards are an appropriate employee reward, and a full 74% think gift cards are more valuable than other types of incentives.
Growing incentive culture: The number of employers providing more rewards has grown, with 20% giving more incentives compared to last year. This shows a broader industry trend of prioritizing employee satisfaction and retention through tangible rewards.
Monetary value matters: 56% of employees want incentives worth at least $100, suggesting that higher-value rewards are more impactful in showing appreciation and driving satisfaction. Companies looking to maximize the impact of their incentive programs should consider the perceived value when selecting rewards.
The timing of incentive payments matters: 54% of respondents prefer having both annual and performance-based incentives available. This indicates that combining different types of rewards can be more effective in addressing diverse motivations among employees—annual rewards outside of base pay for consistent performance, and timely bonuses for outstanding achievements.