Offering an employee a cash bonus may seem like the easiest way to recognize their efforts. After all, who would turn down a bonus? Yet, despite their apparent effectiveness, monetary incentives aren't always the most effective way to boost motivation, recognition, or long-term engagement.
Today, employee expectations are evolving. People are looking not only to be paid fairly, but also to be recognized in a human and authentic way. And this is where other forms of reward, such as personalized gift cards, can stand out.
Money is not always enough
Cash bonuses offer immediate gratification, but their motivational effects are often short-lived. For many of us today, work is no longer just a means of earning a living. It's also becoming a space for personal fulfillment, social contribution, and relationship development. In this context, rewards must evolve in step with talent expectations.
From a psychological point of view, several elements come into play:
- They don't always send the right message: money is impersonal. Without context, a bonus can be interpreted as a simple transaction, whereas personalized recognition would have a stronger emotional impact.
- They are often linked to performance recognition: cash bonuses are generally intended to recognize performance, whether individual, team, or company-wide. This logic can create implicit expectations among employees: if targets are met, a bonus is expected. If it is not offered, or deemed insufficient, it risks creating disappointment and undermining motivation.
- They don't necessarily encourage long-term engagement: belonging to a team, feeling seen, understood and appreciated are increasingly important in retaining talent, especially for younger employees, millennials and those belonging to Generation Z.
Gift cards: a more engaging alternative
Unlike bonuses, gift cards are perceived as personalized gestures, and are generally greatly appreciated by employees. They allow you to turn recognition into a tangible and positive experience. A meal at a restaurant, a trip to the spa, or a small treat at a local boutique are all ways to offer a tangible moment of well-being, rather than a check that disappears into everyday expenses.
Gift cards also have the advantage of being versatile: they adapt to all forms of recognition, whether it is to highlight a pleasant attitude, a birthday, a professional milestone or even the achievement of a goal.
And in an economy marked by inflation and debt, their popularity is only growing. Employees love the ability to choose how to use their rewards, whether to treat themselves a little or to ease their financial burden with a gas or grocery card, for example.
Recognize differently, and better
But the real power of gift cards lies in the thoughtfulness behind them. When they're offered with a personalized appreciation message, as Accolad does with its gift codes, they take on a whole new meaning. The employee doesn't just receive a dollar amount: they receive targeted attention, a sincere word, a gesture that says, "I see you, and I appreciate what you do."
Research shows that recognition has a more lasting impact when it's meaningful, personalized, and aligned with company values. Offering a gift card with a sincere note may seem simple, but it helps build a more human, consistent, and engaging culture of recognition.
Some companies even choose to invite colleagues to participate in this recognition, which creates a positive feedback loop and strengthens the sense of belonging, while limiting the competition often associated with strictly financial rewards.
Towards more human recognition
Should cash bonuses be banned? No. They can have their place, particularly to recognize exceptional performance or the achievement of an ambitious goal. But they shouldn't be your company's only means of recognition.
To sustainably strengthen employee engagement, it's best to focus on approaches that combine perceived value, personalized recognition, and emotional impact. In this regard, gift cards, especially when accompanied by a personalized message, are a highly effective alternative.
Pascale Hubert
Web Writer