There is no right or wrong answer to this question. 

The key to assessing whether or not you have the right solutions or flexible benefits in place is to ask your target audience.
This could be undertaken in several ways dependent upon the size of the workforce and routes to communicate.

Where it is not practical or possible to gain feedback from all staff, often focus groups with representation from various levels and divisions will enable the organisation to gain necessary feedback as to what is important to staff at all levels i.e. management, administrative staff, production operatives etc.

Other points for consideration:

        1. Are payroll systems and administration outsourced or fulfilled by internal teams? What is the potential impact on internal staff / outsourced operations?

        2. How will you communicate to staff what benefits are being introduced? Letters, posters, e-shots, SMS, web hosting, on-site road shows with representation from key flexible benefit providers?

        3. What budget is available to implement the benefits and support them going forwards?

Just as an employer evolves to adapt to changes in working patterns, so the employee reward programme must evolve in order to continue to be effective.  This often means working with a supplier that can offer multiple reward solutions so as to meet the needs of a diverse audience.

Working with one supplier means that a strong long-term relationship can be built and employers can mix and match from the many solutions available.  For example, some may have employees that have internet access and can receive e-shots and access on-line platforms, but they may also have employees that do not which is where vouchers/voucher cheques are an ideal reward mechanic.

Reward scheme evolution often takes the pattern outlined below:

Step 1 = Bulk vouchers

Step 2 = Voucher cheques / fulfilment of vouchers

Step 3 = Online reward and recognition scheme, plus pre-paid staff reward card, plus a combination of voluntary benefits

Step 4 = Bespoke programme solutions & pre-paid staff reward card

“Procurement departments and budget holders will potentially be looking for more effective ways to utilise their available budgets.  Merchandise, whilst often used as a headline grabber because of its visual appeal, often incurs negligible, if any, discount on ‘must have’ items, which also tend to be difficult to source in the run up to Christmas.  When additional postage and distribution costs are factored in, the effectiveness of merchandise is often questionable, an issue that is compounded by potential warranty issues on faulty goods.  Use of merchandise quite often means that any warranty or delivery issues land on the employer’s desk as the relationship is between them and the supplier.

Gift cards and gift vouchers generally have discounts available for corporate users procuring sufficient volumes, can be distributed cost effectively and do not have the hassle of any possible warranty issues. Giving gift vouchers transfers the relationship so that it sits with the employee and retailer, something which is often overlooked.

VAT is something all budget holders should give serious consideration to.  Given the broad range of retail vouchers available and that some have composite rates and others do not, some clients pick and choose which vouchers to offer.   At The Voucher Shop, we have for many years had a composite VAT rate in place which in many instances is seen as a benefit as it ‘saves’ the client a few percentage points. If VAT is a concern for the budget holder than they should do their homework before jumping in with both feet and committing to a higher rate simply because they want to deal direct with multiple high street retailers.

Where practical and possible budget holders would be wise to consider ‘bulk’ buying prior to the 2011 VAT rise if it is identified that a significant saving can be made. Of course cash flow may well be a consideration so the practicalities may not be so clear cut.

“It is generally accepted that over the past couple of years, because of the challenging economic conditions, there has been a shift away from some of the more traditional ‘aspirational’ brands towards supermarket vouchers, as consumers look to make gifts and rewards count towards their monthly outgoings such as groceries.  However, as an organisation, we have seen some of the more aspirational retailers hold their own, and in some instances they have enjoyed significant growth.

Although the phrase ‘cash is king’ is often heard I expect this option may actually reduce in popularity this Christmas given that giftcards and retail vouchers can and do attract a discount. This is encouraging corporate buyers to switch to a more attractive and memorable voucher or card-based gift, rather than simply adding £X to an employee’s salary where it will more often than not be swallowed up in the costs of everyday living without a second thought, thereby reducing its effectiveness as a gift.”

With redundancies high on the agenda of a great many companies, maintaining the morale of staff will require a little more effort. But Jo-Anne Flack discovers such a policy will pay dividends

Kuljit Kaur, Head of Business Development at The Voucher Shop, talks to Marketing Week about the need to train people to take on new tasks and build up efficiencies during a recession as redundancies can prove a strategic error in the long run.

Read the full article (http://www.marketingweek.co.uk/in-depth-analysis/its-enough-to-make-you-scream/2064269.article)

Everything in this day and age comes ‘on-demand’ and orders for vouchers are now expected to be processed on one day and issued the next. From the end-user’s perspective, this may appear to be a simple process, and therefore leaves no room for error, but ensuring that it all runs smoothly from start to finish is a challenge for the voucher provider.

Read the full article (http://www.johnsylvester.co.uk/uncategorized/a-guide-to-processing-voucher-orders/)

LONDON – In the current economic climate, many companies have discovered that gift cards and vouchers have become even more effective incentives for consumers and employees.

Kuljit Kaur, Head of Business Development at The Voucher Shop, talks to Brand Republic about how vouchers can add value to any reward or benefit scheme during a recession.

Read the full article (http://www.brandrepublic.com/Discipline/SalesPromotion/News/927557/Voucher?DCMP=ILC-SEARCH)

Measurement is an inherent part of a motivation or incentive programme so not only is it important it is essential.

John Sylvester, Director of The Voucher Shop, blogs about his thoughts regarding the need to have a clear view of the business benefit of these schemes.

Read the full article (http://www.johnsylvester.co.uk/recognition/measuring-the-effectiveness-of-vouchers-and-cards/)

Stand-out promotions do not just provide a short-term sales boost but build a brand’s value – especially at a time when consumers are feeling the pinch.

Kuljit Kaur, Head of Business Development at The Voucher Shop, talks to Marketing Week about how vouchers can be used to reward loyalty during a time when the promotions and incentives industry has exploded.

Read the full article (http://www.marketingweek.co.uk/satisfying-an-appetite-for-sweeteners/3008548.article)