With cash bonuses not an option in the current economic climate, many businesses are being forced to develop some unique and cost-saving ways to reward hard-working employees.
Rather than spending big money on prizes and other incentives for top employees, a number of businesses are using the credit card rewards they are already earning as an employee motivational tool. From gift cards and vacations to movie tickets and gasoline, credit card rewards offer a variety of options to help encourage employees to give it their all.
Brian Kelly, founder of ThePointsGuy.com, said instead of choosing a credit card that offers rewards on business-related items like free shipping and office supplies, employers may see more benefits by finding a card with rewards that are more appealing to their employees.
With these prizes, which they are earning by spending money they would be spending anyway, employers can hold contests and other office challenges to get the most out of employees.
"One way to incentivize employees using your rewards is to redeem your points for a gift card or a piece of merchandise and offer it as a prize to the employee of the month, your top seller, etc.," Kelly told BusinessNewsDaily.
Companies that allow employees to have full-time access to a company credit card have several other options for using the rewards as a motivating tool. John Ulzheimer, a credit expert at CreditSesame.com, said the first possibility is to let the employees keep the rewards their card earns with their purchases.
"The best use of rewards as an incentive for employees is to allow the employee to keep the rewards for their personal use," Ulzheimer said.
Companies also can pool the rewards from all their employee-used credit cards to get larger prizes and rewards.
"Another way would be to aggregate the rewards and then use them for their employee's benefit," Ulzheimer said. "I worked for a company that would aggregate all of the reward miles earned and then use those points to pay for award trips for the most productive employees."
While Kelly said using credit card rewards as a https://www.businessnewsdaily.com sounds great in theory, it will only work if the rewards are something all employees truly desire.
"If your employees want the rewards you are able to earn with your business credit card points, then this could be a great way to reward them, but if you find that they are put to better use for other redemptions like expensive travel, including airline tickets or hotel nights, then perhaps you are better off rewarding your employees some other way," Kelly said.
Originally on BusinessNewsDaily.