Spending on festive rewards and Christmas parties rockets as bosses look to retain staff in 2018
Employers are working harder to keep staff happy this Christmas, spending millions on festive bonuses and parties, to counter threats of skill and worker shortages in 2018.
The annual study by the Prepaid International Forum (PIF) of 2,000 UK workplaces reveals a 23% increase in the number of employees due to receive a festive reward or bonus.
Just over one in five (21%) workers are due to get a Christmas bonus this year, compared to just 14% last year and 7% in 2014.
These findings are supported by reports from prepaid companies who provide services to employers looking to distribute Christmas rewards.
One member of PIF, One4All Rewards, a leading provider of corporate incentives which provides multi-retail prepaid gift cards as staff bonus or reward schemes, reports that sales to corporate and SME customers have risen by 25% compared to the same period last year.
However, this generosity has more do with business than it does Christmas spirit. Employers admit that their main motivation for such generosity is to retain staff after a year dominated by headlines about skills shortages and concerns about Brexit making it harder to recruit in 2018.
Alastair Graham, spokesperson for PIF, says:
“Our study shows that businesses increasingly understand the importance of retaining their best staff and the impact that providing an annual “thank you” has on loyalty and motivation.
“Christmas is a traditional time to show workers that you appreciate their efforts and provide a little extra to help them celebrate and enjoy themselves over the festive period.”
Commenting on the rising trend Alan Smith, Managing Director of One4all Rewards said,
“We’re seeing companies plan their annual rewards earlier this year and in bigger numbers. It’s also noticeable how it’s not just large corporates who are planning their bonuses and rewards. Increasingly smaller businesses are also getting in on the act.
“We’ve carried out studies that show that even smaller value bonuses paid through non cash devices like gift cards can have a huge impact on staff motivation and loyalty, particularly with younger workers and those on lower wages for whom a little extra makes a big difference.”
Christmas parties also seem to be getting a boost this year.
Payment Card Solutions (PCS), another PIF member, has noted a 400% increase on last year from businesses ordering its prepaid cards to be used for Christmas party spending.
Paul Swinton, CEO of PCS, commented
“We’re especially seeing uptake from businesses with large national networks, issuing more cards to managers with which to treat staff. This helps each store or office to organise their own Christmas party and use the prepaid card to fund the evening for staff.”
Alastair Graham of PIF concluded that the attractiveness of its members’ prepaid gift and payment products to companies making bonus payments is that they all are regulated products. The strong customer protection they are required to provide under EU E-money Regulations ensures that all recipients really do have a very happy Christmas.
Notes to Editors
The Prepaid International Forum (PIF) is the not-for-profit trade association representing the prepaid financial services sector. Driven by a belief that prepayment is a responsible way to pay for goods and services, and that consumers should be confident in the security of prepaid products and the money that is stored on their behalf, PIF advocates for policies and standards that enhance and protect the use of prepaid as a payment solution. The PIF membership represents every aspect of the prepaid value chain, from providers of prepaid products and services to card schemes, payment processors and a variety of other businesses aligned to the sector. For further information visit www.paymentsinnovationforum.org
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