Research across 4000 organisations by Miconex has found companies are continuing to adjust their rewards and incentives in line with changing employee and organisational needs plus changing working practices.
In a study carried out in August 2024, 80 per cent 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 per cent), changing working practices (22 per cent) and changing organisational needs (16 per cent).
From the perspective of changing organisational needs, 94 per cent said their rewards and incentives align with their organisational purpose and values. 89 per cent said supporting local businesses/their community was important to their organisation and 84 per cent said corporate social responsibility has become more important to their organisation over the past 12 months.
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 per cent of organisations said offering choice to employees in their rewards and incentives was important.
In terms of rewards offered, 77 per cent of organisations use gift cards for their staff rewards/incentives. 39 per cent offer rewards and incentives at Christmas, 35 per cent all year round and 18 per cent at the end of the tax year. The majority (70 per cent) of organisations said they offer rewards which are expected by staff. 66 per cent 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.
“While down from the 100 per cent or 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,” said Colin Munro, managing director of Miconex. “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,” Munro added. “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,” he concluded. “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.”
