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Discover if gift cards or cash bonuses better motivate employees. Learn how Assembly’s new gifting program can boost engagement.
In today’s competitive business environment, employee motivation is a key driver of productivity, engagement, and retention. Organizations are constantly seeking effective ways to recognize and reward their teams, with cash bonuses and gift cards emerging as two of the most popular options. But which of these rewards truly inspires employees to perform at their best? And how can modern solutions like Assembly’s new gift card program help companies create more meaningful and memorable recognition experiences?
Let’s explore the psychology behind rewards, employee preferences, practical considerations, and best practices for building a recognition strategy that truly motivates.
At first glance, cash bonuses seem like the ultimate reward—flexible, universally valued, and easy to distribute. However, research in behavioral economics and organizational psychology reveals a more nuanced reality.
While cash is always appreciated, employees often treat it as part of their regular income, a phenomenon known as “mental accounting.” This means cash bonuses are frequently used for everyday expenses like bills or groceries, which can diminish their emotional impact. The reward quickly blends into routine finances, making it less likely to be remembered or associated with a specific achievement.
Gift cards, on the other hand, are typically seen as “guilt-free” spending. They encourage employees to treat themselves to something special—a nice dinner, a new gadget, or a fun experience. This creates what psychologists call “trophy value,” where the reward is tied to a memorable purchase or experience. Employees are more likely to recall what they bought with a gift card and associate it with their employer’s appreciation, strengthening the emotional connection and making the recognition more impactful.
Employee preferences for rewards are far from uniform. Surveys show a split: while many employees appreciate the flexibility of cash, a significant number value the personal touch and indulgence that gift cards offer.
Ultimately, the most effective recognition programs empower employees by giving them a choice in how they are rewarded, demonstrating that the company values their individual needs and preferences.
Assembly will soon launch a new gift card program designed to make employee recognition more meaningful, flexible, and delightful.
Here’s how it stands out:
With Assembly, you can create moments of delight that employees remember, making recognition more meaningful and impactful.
While both cash bonuses and gift cards have their place in a comprehensive rewards strategy, gift cards often create more memorable and motivating experiences. The emotional impact, personalization, and “trophy value” of gift cards can drive higher engagement and satisfaction, especially when delivered through a modern, user-friendly platform like Assembly.
The most effective approach is a thoughtful, flexible rewards strategy that leverages the strengths of both cash and non-cash incentives. With Assembly’s new gift card program, you can easily deliver meaningful recognition that truly motivates your team.
Ready to make employee recognition more meaningful?
Schedule a demo with Assembly today and discover how our free gift card program can elevate your rewards strategy!
1. Are gift cards better than cash bonuses for employee motivation?
Gift cards often create more memorable and motivating experiences than cash, as they encourage employees to treat themselves and feel truly recognized.
2. What are the advantages of using gift cards for employee rewards?
Gift cards offer personalization, memorable experiences, and can be tailored to specific occasions, making them feel more special than cash bonuses.
3. How does Assembly’s gift card program work?
Assembly’s program lets you send free 1:1 or 1-to-many gift cards, automate company-wide gifting, and create animated e-cards for any occasion.
4. Can I automate employee gifting with Assembly? Yes! Assembly offers automated gifting for companies. Just contact their sales team to set up recurring, personalized rewards for your team.
Get the foundational knowledge on creating an employee recognition program that boosts employee engagement and helps them feel valued.
Explore Guide
Yes, at Assembly, security is a top priority. Each quarter, we have ongoing security work that is everyone’s responsibility. While we maintain a strong security posture, it was important for us to prove to our customers that we do everything we claim to do. This led us to pursue a SOC 2 Type II report that would provide evidence of our compliance with industry gold-standard security practice.
There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.
Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.
The minimum agreement term is a 12-month subscription.
We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.
At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.
The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.
We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.
For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.
If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.
If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at support@joinassembly.com.
Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!
While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.
Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.
Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.
That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.
They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.
No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.
Please schedule time with an expert and we will help you to get all your questions answered
