Card Rewards Are Used As Incentives In Small Businesses



 


A lot of small businesses are being affected by the economy. Many companies are turning to credit cards as a way to reward their employees. In the past, employees would be rewarded with cash bonuses, stock and other such things. Now as employers still want to reward their employees for a job well done, they are getting more and more creative.

A lot of credit cards on the market offer cash back. This cash back can come in a variety of forms. A small business can opt to have the cash back applied to their credit balance, as a check in the mail or in the form of gift cards. Many of the small business owners that are strapped for cash are opting for the gift cards to reward their employees and use them as incentives.

The cash gift cards aren't the only rewards being used, either. There are credit card reward points being used as rewards as well. This allows employers to shop for merchandise and other items on the credit card company's merchandise catalog for various items that employees want. Even executives are using credit card points to purchase gift cards to various stores.

Some of the card rewards cannot be redeemed for cash. That's okay, though. Employers are getting creative. They're using the points to purchase gift cards at entertainment venues, restaurants and even for such things as gas cards and movie tickets.

The employees don't seem to mind, either. In fact, many of them see the gift cards and movie tickets as a better reward than cash because it ensures they use the reward for something for themselves. With cash, they end up using it for groceries or bills, therefore never really enjoying the reward from their employer.

Once upon a time, small businesses would use reward points on plane tickets to entertain out of town clients. Now, it's more important to keep current employees happy in today's economy. Using the card rewards will save employers a lot of money over the course of the year. Using credit card points for rewards ensures employees stay where they are. This eliminates or drastically reduces the money spent on advertising for new positions, interviewing candidates and training new hires.

Small businesses may or may not offer a benefits package to their employees. Rewarding employees needs to happen regardless of health insurance benefits or any other benefits that may be included. The reason is because employees view the rewards and incentives as "above and beyond" which is a touch that many look for. It also allows small employers to show some appreciation to the employees.

Employees need motivation to work harder. Whether the gift card is given out for a sales contest, an employee of the month award or just after an employee goes the distance on a particular job or with a certain client, the gesture is what counts.

Turnover is very high at a number of small businesses, despite the unemployment rate being higher than ever. The reason is because employees are constantly looking for better opportunities. They will go where they are paid well, given a good benefits package and generally appreciated.

Small business owners need to do whatever they can in order to hold on to well-trained employees. The experience of an employee in a small business atmosphere can be what makes a particular business successful. If suddenly all the experience were to walk out the door, the business would struggle. As a result, it only makes sense for small businesses to show appreciation to their employees in whatever way possible.

Since there are so many credit cards on the market that offer cash back and point rewards, it's not hard for a small business to get rewards for their employees without spending any money. When regular purchases are made on the credit card, the points accumulate on their own. Small businesses simply need to make the decision to use the rewards on their employees and instead of on their own.

Rewarding the experienced and productive employees is a good business practice. It will reduce turnover rates and it will motivate employees to work harder, be friendlier and show up on time throughout the work schedule. A small business can thrive with the right people in place. All it takes is using in the right manner to keep employees happy. Points are free just with using the card, which is the financially advantageous thing to do, especially when a small business finds themselves strapped for cash.






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