How to motivate your staff

What should business leaders do to motivate their employees? According to research by the Institute of Employment Studies, it starts with simple, regular thank-yous

It sounds simple because it is: staff who feel valued give more.

Research by the Institute of Employment Studies shows that employees who feel appreciated are more loyal, more dedicated and less likely to leave or take time off sick. A recent survey by a gift card provider showed 71 per cent of employees would prefer to work for an employer who offered effective benefits and rewards than take a job with higher pay.

“The most effective rewards are good day-to-day management, where people feel supported to do great jobs,” says management expert and author Scott Watson. “The best way to make a personal incentive worthwhile is to present a gift in person, or at least sign a letter to the employee – it will means the boss has recognised him or her individually and is paying attention.”

Staff incentives have been awarded for decades, says Watson, but it doesn’t necessarily mean they are always administered well. At times, employees perceive them to be unfair or to show favouritism. A good incentives scheme must be transparent – clearly communicated, clearly measured, and competently monitored and reviewed. Research by gift card provider One4all revealed that 68 per cent of respondents would feel loyal towards their employer if they were regularly thanked.

Gift vouchers and prepaid cards remain by far the most popular option amongst employers; industry experts estimate the business to business voucher and gift card market – mostly employee rewards – represents around 45 per cent of the UK’s overall gift card sales, which rose 4.6 per cent last year to total around £5 billion. Employers choose them because of their convenience and flexibility, and because they believe gift cards leave a more favourable impression upon employees than cash incentives.

Gift cards are also an established method of rewarding loyal customers – and an enticing way to say “thank-you” to valued clients, allowing them to accrue rewards to spend on quality brands. A recent study conducted by Accenture showed that 63 per cent of consumers surveyed say they would switch to retailers that offer good loyalty programmes and exclusive offers. A separate study by Retail Systems Research found that 61 per cent of retailers site customer retention as their greatest obstacle – and a study by ClickFox found that 62 per cent of consumers don’t think the brands they’re most loyal to are doing enough to reward them. This research shows that companies wishing to build stronger relationships with their customers would be wise to consider a quality rewards programme.

Cards such as those offered by retailer House of Fraser can be delivered digitally, and topped up and activated remotely, allowing companies to tailor benefits they offer staff to suit their businesses and maintain flexible budgets. Discounts are available on bulk orders and a dedicated sales team can assist busy managers with administering the incentives.

Employees, customers and clients appreciate them for convenience and choice – gift cards can be used in house at stores such as House of Fraser or online – in fact the prestigious retailer now offers a free iPhone app to allow shoppers to browse thousands of top brands available in store.

Once an incentive scheme is up and running, companies need to update participants on how they’re performing individually and possibly as a team – and again once the scheme is over. It’s highly motivating to recognise individuals in front of their peers; rewards are a useful means to thank staff for their efforts and encourage them in future schemes.

When dealing with employee rewards, companies must take care, says Watson, to ensure rewards don’t appear as a purely transactional agreement to the detriment of relations between managers and staff, but are awarded as sincere thanks for performance. “The biggest enabler of people performing well is the quality of the bond with their line manager.”

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With premium fashion brands including Kenneth Cole, DKNY, Ralph Lauren, MaxMara, Hugo Boss and Michael Kors, you're sure to be the envy of the office at this year's bash.

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to visit the House of Fraser website.

Reward your customers or employees with a Gift Card or eGift Card from House of Fraser and you’ll benefit from a business discount on volume purchases.

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to find out more.