Organisations are continuing to adjust their rewards and incentives in line with changing employee and organisational needs plus changing working practices, according to new research.
In the research undertaken by Miconex with over 4000 organisations, employees and consumers, 80% of organisations said they have changed some aspect of their reward and incentive initiatives over the past 12 months, prompted by changing employee needs (62%), changing working practices (22%) and changing organisational needs (16%).
From the perspective of changing organisational needs, 94% said their rewards and incentives align with their organisational purpose and values. 89% said supporting local businesses/their community was important to their organisation and 84% said corporate social responsibility has become more important to their organisation over the past 12 months.
Reasons for supporting local included that it enabled them to take an active role in the success of their community (20%) and because it was important to their staff/customers/clients (30%). In qualitative research, participants talked about how support for local positively impacted their public perception of their organisation, creating a ‘halo effect’.
From the perspective of changing employee needs, qualitative research with organisations showed a preference for rewards that are ‘genuinely helpful’, including rewards that can be used in a practical way. 89% of organisations said offering choice to employees in their rewards and incentives was important.
In terms of rewards offered, 77% of organisations use gift cards for their staff rewards/incentives. 39% offer rewards and incentives at Christmas, 35% all year round and 18% at the end of the tax year. The majority (70%) of organisations said they offer rewards which are expected by staff. 66% of organisations surveyed expect their R&I budget to increase in 2025.
Miconex are founders of the Town & City Gift Card initiative active in over 100 UK and Irish towns and cities. The cards can be used with national brands and independent businesses in specified towns and cities, locking spend into local areas. The cards are used by organisations including Ocado Retail Hub, allpay Ltd, Shell and Robert Gordon University to reward their staff.
New technology introduced by Miconex in October 2024 allows organisations to send digital Town & City Gift Cards online to multiple recipients at once, either immediately or on a future date.
Colin Munro, managing director of Miconex said: “While down from the 100% of organisations who had changed some aspect of their reward and incentive initiatives in 2023, our 2024 research suggests that organisations are still tweaking their R&I initiatives, with CSR and local support playing a prominent role. We’re seeing a significant trend of organisations making the move to local gift cards, which enable organisations to proactively demonstrate what they stand for, and what they believe in.
“Larger organisations expressed a preference for one size fits all rewards that are suitable for all employees, no matter where they live, often leading organisations to Amazon or single retailer gift cards. Our new digital technology was introduced specifically to make supporting local easy, even when organisations have dispersed workforces.
“Offering choice to their employees is key for organisations, and it’s highly prized by employees too. The presence of big brands and independent businesses within a single Town & City Gift Card gives employees unbeatable local choice and the ability to support local businesses.”