EDINA, Minn.—When it comes to employee incentives, cash and checks remain popular, but according to a recent study from Young America, www.Young-America.com an incentive marketing firm, prepaid card programs are moving up as one of the more desired incentive rewards among corporate human resource executives.
“As many companies cope with across-the-board salary freezes and other austerity measures to control costs, employers who want to retain their best employees admit they have fewer resources to do so, and many are turning to structured incentive programs, which cost less than salary increases and often result in high levels of employee productivity, positive feedback and loyalty,” said Joe Custer, President of Young America. “We are seeing an uptick in activity from corporate HR departments that are looking to centralize their current incentives program, create a new program or increase or replace their existing one.”
And many plan to issue prepaid cards. In fact, nearly half (46 percent) of HR executives use prepaid cards for their incentive/reward programs, compared to 33 percent rewarding with cash and 47 percent using checks, according to a late-2010 survey of 355 executives in Human Resources, Sales or Marketing departments at U.S.-based companies with motivational or incentive programs in place for 100 or more employees and revenues of at least $50 million.
“Prepaid cards are unique because they remind employees that they are being thanked every time they use the card—unlike cash or a check, which is often forgotten about once spent or deposited,” said Tim Crank, Senior Vice President of Marketing for Young America.
The Young America survey also found that many holiday gift programs were cut last year, making way for more year-round incentive programs. Fully 43 percent of employers said they would use a new prepaid card program for additional employee recognition programs and 48 percent would add prepaid cards in place of other types of employee rewards.
“Prepaid cards offer an easier, more streamlined way to administer incentives and rewards to employees, and almost half of those employees who receive them now feel good about getting them,” said Crank.
About Young America Corporation
With 40 years of experience and more than 300,000 marketing programs, Young America provides the full range of customer engagement and incentive services for its clients, including data analytics, strategy, rewards, and communications and program management. From acquisition to growth and retention, YA creates Engagement Marketing solutions that drive greater brand awareness, invite more customers and generate more sales for their clients. Young America provides a single platform that integrates strategies in support of driving incremental behavior from consumers, employees and channel partners. Young America Corporation is based in Young America, Minnesota and is one of the largest rebate and loyalty program fulfillment providers. Visit us at www.Young-America.com.