The Importance of Appreciating Employees: Why Digital Gifting Should Be Part of Your HR Strategy

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Employee appreciation is no longer a “nice to have”; it’s a necessity for creating a productive, motivated, and engaged workforce. Studies have shown that recognition programs can drastically improve morale and increase company loyalty. But in today’s digital era, companies need scalable and sustainable methods to appreciate their employees. That’s where digital rewards, such as e-gift cards, come into play. This article explores why employee appreciation matters and how digital rewards are transforming modern recognition programs.

Why Employee Appreciation Matters

Employees who feel appreciated and valued are more likely to be engaged at work, which boosts productivity. Research has often shown that recognition is directly linked to positive outcomes, such as improved job performance and organizational loyalty (Luthans, 2000; Brun & Dugas, 2008).

In a study published by Brun and Dugas (2008), recognition was found to be closely associated with increased job satisfaction, organizational commitment, and overall well-being of employees. The research further suggests that when employees feel acknowledged, they are more likely to perform well and exhibit greater loyalty to the company. In other words, employee recognition serves as both a morale booster and a performance enhancer.

The Impact on Employee Engagement and Productivity

A well-implemented recognition program can significantly increase employee engagement. According to a study published in the Journal of Indian Management Research and Practices, employees who feel valued are more likely to stay engaged and motivated. This engagement often translates into higher productivity, better teamwork, and improved business outcomes.
Moreover, research by Eisenberger et al. (1986) suggests that employee recognition can enhance productivity by making employees feel more connected to their work and their company’s goals. Employees who receive regular recognition are more motivated to contribute to their organization’s success.

One of the biggest advantages of digital recognition is scalability. Managing physical gifts or events becomes increasingly difficult as teams grow, but digital platforms make it simple. Whether a company has 50 or 5,000 employees, digital gift cards can be sent out with just a few clicks, saving both time and resources.

Sustainability is another critical factor. As organizations face more pressure to adopt eco-friendly practices, digital rewards stand out. Unlike physical gifts, which require packaging and shipping, e-gift cards are paperless and waste-free, reducing the company’s carbon footprint.

The Shift to Digital Appreciation

“In today’s digital world, there’s been a clear shift in how companies approach employee recognition. Traditional methods, like physical gifts and in-person ceremonies, are becoming less feasible, especially for larger or remote teams,” explains Pascal van Dalen, CEO of Giffy – experts in e-gifting. “As a result, many businesses are opting for digital solutions, such as e-gift cards, because they offer significantly more benefits.”

Digital solutions also cater to employees’ desire for instant gratification. Unlike traditional rewards that may take time to arrive or require scheduling, e-gift cards are immediate, ensuring that appreciation feels timely and meaningful.

Lastly, digital gift cards provide flexibility. Employees can choose from various brands, services, or even donate to charities, allowing them to select something personal and valuable to them, making the recognition more thoughtful and impactful. In addition to shopping for their favorite brand we see another trend emerging: the use of company-branded prepaid cards. When cash rewards are deposited directly into employees’ bank accounts as part of their salary, they often get absorbed by regular monthly expenses. By using a prepaid card for employee rewards, the funds are placed in a separate account, making it more likely employees will spend it on something enjoyable. This also supports the cost of living, giving employees greater flexibility in how and when they choose to use their rewards, making the recognition feel more meaningful and personal.

Van Dalen also highlights the personal impact of digital solutions: “Employees appreciate the ability to choose something meaningful to them. This level of personalization ensures that the recognition feels genuine, rather than just a token gesture.”

The Business Case for Digital Appreciation

The transition to digital appreciation programs doesn’t just benefit employees; it has a strong business case as well. Companies that implement effective employee recognition programs tend to outperform their peers in key business metrics.
A study from Vorecol found that companies with structured recognition programs are 21% more profitable compared to companies that lack such programs. Also, the same report states that engaged employees are 87% less likely to leave their company. This underscores the fact that recognition programs are not just feel-good initiatives but have tangible, measurable business benefits.

It’s also worth noting that in countries like the United States and across Scandinavia, strong recognition programs are more often the rule than the exception. In contrast, the Netherlands is still catching up in this regard, although there is a clear trend toward the increasing adoption of such programs. These regions emphasize employee well-being, social equity, and structured workplace systems, including employee recognition, which is often linked to their overall focus on equality and sustainable growth.
In essence, recognition programs not only boost morale but also contribute significantly to a company’s financial success, employee retention, and overall organizational health.

How Digital Rewards Impact Customer Satisfaction

Employee satisfaction often directly impacts customer satisfaction (Jeon & Choi, 2012). Employee recognition programs motivate employees to go above and beyond their roles, thus having an impact on customer satisfaction. When employees feel valued, they are more likely to provide better customer service, which tends to lead to higher customer retention rates and improved brand loyalty.

Another study from Burgarella (2005) points out that customer-facing employees who receive regular recognition are more motivated to engage positively with clients, which leads to better customer experiences and, ultimately, higher sales.

“The future of employee recognition is digital. It’s more efficient, more sustainable, and ultimately, more meaningful for the employee. Organizations that adopt these solutions will be better equipped to build stronger, more loyal teams.”

Conclusion: Why Digital Gifting Should Be Part of Your HR Strategy

In today’s fast-paced, remote-friendly, and environmentally conscious world, digital recognition is not just an option: it’s a necessity. Digital gifting provides a flexible, scalable, and sustainable solution for rewarding employees, while also contributing to broader company goals such as increased profitability and enhanced customer satisfaction.
By embracing digital rewards, HR leaders can foster a more engaged, motivated, and loyal workforce while positioning their companies as innovative and sustainable employers. As organizations continue to evolve, digital recognition will no longer be optional: it will be a strategic necessity for retaining top talent and ensuring long-term business success.

Pascal van Dalen sums it up perfectly: “The future of employee recognition is digital. It’s more efficient, more sustainable, and ultimately, more meaningful for the employee. Organizations that adopt these solutions will be better equipped to build stronger, more loyal teams.”

This article is brought to you by Giffy – https://www.getgiffy.org/

Sources:

Brun, J. P., & Dugas, N. (2008). An analysis of employee recognition: Perspectives on human resources practices. Human Resource Development International, 11(3), 245-263.
Bulgarella, C. C. (2005). Employee Satisfaction and customer satisfaction. Guidestar research, white paper.
Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied psychology, 71(3), 500.
Jeon, H., & Choi, B. (2012). The relationship between employee satisfaction and customer satisfaction. Journal of services Marketing, 26(5), 332-341.
Luthans, K. (2000). Recognition: A powerful, but often overlooked, leadership tool to improve employee performance. Journal of Leadership Studies, 7(1), 31-39.
Mohanan, M., Sequeira, A. H., & Kumar, M. S. (2012). Employee engagement and motivation: A case study. KHOJ-Journal of Indian Management Research and Practices.
Vorecol.com. (z.d.). Measuring the Effectiveness of Recognition Programs on Employee
Engagement.https://vorecol.com/blogs/blog-measuring-the-effectiveness-of-recognition-programs-on-employee-engagement-184805