How To Boost Employee Productivity With Digital Cards

The alarm bells are ringing! A recent McKinsey study reveals that more than half of employees are unproductive at work. Plus, 51% of global workers are seeking new employment opportunities, according to Gallup. The financial repercussions of this productivity decline and lowered employee morale are substantial.

McKinsey's research indicates that employee disengagement and attrition can cost a median-size company a staggering sum of between €208 million and €325 million annually in lost productivity. Over five years, this translates to a loss of at least €1 billion in value per company!

In this article, we explore the six key types of employees and their unique productivity profiles. We will then delve into tactics to re-engage and retain each archetype using incentives and bonuses, and how tax-free digital cards can speed up the process and save money in the long run.

The Six Key Employee Archetypes

To address the issue of declining productivity and job satisfaction, it's crucial to first acknowledge and understand the six distinct employee archetypes based on their levels of satisfaction, engagement, performance, and well-being.

The McKinsey research found that on one end of the spectrum, we find the "quitters" and "disruptors," who represent around 10% and 11% of the workforce, respectively. These employees are actively disengaged, and their dissatisfaction can have a detrimental impact on the overall productivity levels and morale of the business.

On the other end, we have the "thriving stars," who make up approximately 4% of the workforce. These individuals are highly engaged, perform at exceptional levels, and even inspire others around them.

In the middle, we have the "mildly disengaged" (32%), the "double-dippers" (5%), and the "reliable and committed" (38%).

Each of these groups presents unique challenges and opportunities for companies seeking to boost productivity.

Re-Engaging Employees with Incentives and Bonuses

One of the top ways to facilitate for productive employees is to create a supportive work environment where they feel valued and appreciated. By introducing bonuses, incentives, and rewards that cater to the needs and motivations of each archetype, businesses can significantly boost productivity levels and help develop a positive and productive workplace.

Target the "Quitters" and "Disruptors" with Retention Bonuses

Retention bonuses and financial rewards offered to employees in the “quitters” and “disruptors” groups, are a powerful tool. These bonuses not only demonstrate the company's appreciation for its employee’s contributions but also serve as a tangible incentive for them to remain committed to the business’ goals and reconsider looking for a new job.

By providing a financial safety net and acknowledging the value of their skills and experience, these bonuses can significantly reduce turnover rates and ensure that the company retains its most valuable hires.

Examples of retention bonuses include:

• Milestone-based: Offer a significant bonus upon reaching specific employment anniversaries (e.g., 3 years, 5 years, 10 years).
• Project-based: Provide a bonus for successfully completing a critical project or staying on until a project's completion.
• Stay-interview linked: Offer bonuses after conducting stay interviews to address any underlying concerns and demonstrate commitment to the employee's future with the company.

Motivating the "Mildly Disengaged" With Staff Incentives

The "Mildly Disengaged" cohort represents a significant portion of the workforce, and while they may not be actively unhappy, their lack of full engagement presents a substantial opportunity for improvement.

Strategic staff incentives can be the secret sauce to uncovering these employee’s potential and turning them into motivated contributors. By implementing a well-structured system of rewards that recognises and celebrates achievements, not only can employee performance be greatly improved, but a sense of belonging and connection to the company culture can be harnessed.

Examples of staff incentives:

• Performance-based bonuses: Reward employees who exceed expectations or achieve specific targets with monetary bonuses.
• Profit-sharing programs: Share a portion of company profits with employees to create a sense of ownership and shared success.
• Employee recognition programs: Acknowledge outstanding performance through awards, certificates, or public recognition within the company.
• Flexible work arrangements: Offer options like remote working, flexible hours, or compressed workweeks as a reward for high performance or commitment.

Retaining the "Double-Dippers" With Project-Based Bonuses

"Double-Dippers" represent a unique challenge. They are valuable contributors but may be actively exploring other opportunities. To keep these employees engaged and invested, consider giving them project-based bonuses that are tied to the successful completion of a critical project. By doing so, businesses can create a strong incentive for them to see their current commitments through.

This not only benefits the project itself by ensuring continuity and expertise, but it also demonstrates to these employees that their contributions are valued, potentially swaying their decision to stay with the company long-term. The excitement of a tangible reward can refocus their attention, reignite their enthusiasm for the task at hand, and subsequently tip the scales in favour of loyalty and continued engagement.

Rewarding the "Reliable and Committed" With Long Service Bonuses

The "Reliable and Committed" employees form the backbone of any business, consistently delivering results and demonstrating their loyalty. Recognising their invaluable contributions is not just a matter of courtesy; it's a strategic imperative for retention and sustained productivity. Long service bonuses are the perfect example of this principle.

By offering substantial rewards tied to specific milestones in their tenure, whether it's 5, 10, or even 20 years of service, businesses not only acknowledge their employee’s dedication but also reinforce the message that their commitment is valued.

It's a tangible way to express gratitude and encourage these steadfast individuals to continue being the pillars of an engaged workforce and the company's success for years to come.

Recognise the "Thriving Stars" With Flexible Gift Cards

"Thriving Stars" are the exceptional individuals who not only excel in their roles but also inspire those around them. Acknowledging their contributions requires going beyond generic rewards. It's about demonstrating a genuine understanding of their unique passions and interests.

Consider offering them the gift of choice through flexible digital gift cards that enables them to pursue what truly excites them. Whether it's indulging in their favourite hobby, investing in the latest tech, experiencing fine dining, or simply enjoying a relaxing spa day, this approach demonstrates a deeper level of appreciation for their individuality and passions.

Support Employees with Difficult Jobs

In addition to tailored incentives and bonuses, it's crucial to recognise that certain roles within a company can be inherently more demanding or stressful. Providing support for employees in these positions, regardless of their archetype, is essential for maintaining their well-being and productivity.

This can include providing access to counselling services, implementing flexible work arrangements, and encouraging employees to take wellness days to recharge and focus on their mental and physical health.

Additionally, giving employees gift cards for activities that promote physical and mental well-being such as yoga classes, gym memberships, or mindfulness workshops can demonstrate a tangible commitment to their overall health. By making these options readily available and encouraging their use, businesses can create a workplace culture that enhances the overall employee experience while supporting them in managing the challenges of demanding roles.

CleverCards: The Solution for Keeping Employees Engaged

To streamline the implementation of incentive and bonus strategies, companies are adopting innovative solutions like CleverCards tax-free digital gift cards, which enable instant and impactful rewards that boost employee engagement and productivity.

Here’s why they are so popular:

Global Spending Power

CleverCards digital gift cards are accepted wherever MasterCard is supported, providing employees with the flexibility to use their rewards for a wide range of purchases worldwide, including online shopping, travel, entertainment, dining, and household expenses.

Streamlined Distribution and Administration

Digital gift cards eliminate the logistical challenges and administrative overhead associated with physical cards. This translates to time savings for HR managers and ensures prompt, reliable delivery of rewards to all employees, regardless of their location.

Cost-Efficiency and Enhanced Value

By eliminating the costs associated with physical card procurement and distribution, CleverCards allows businesses to allocate those savings towards increased employee rewards or other initiatives that promote engagement and well-being.

Environmentally Responsible Choice

In an era of increasing environmental awareness, digital gift cards offer a sustainable alternative to traditional plastic cards. This approach aligns with corporate social responsibility goals and resonates with employees who value eco-conscious practices.

How to Avail of Tax-Free Employee Gifting with CleverCards

By availing of the updated Small Benefit Exemption scheme, Irish businesses can now distribute two tax-free benefits (vouchers or gift cards) to employees each year. To qualify for the tax-free allowance, the benefits should not be in the form of cash, and the combined worth can’t exceed €1,000.

By leveraging digital cards and tailored incentives, businesses can significantly enhance workplace productivity and create a more engaged, satisfied workforce.

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