In today’s competitive job market, companies prioritize employee engagement and retention more than ever. One of the most effective ways to show appreciation and motivate employees is through well-designed rewards and recognition programs. However, traditional rewards like gift cards and branded swag are losing their appeal. The future of employee rewards is shifting toward experience gifts, which offer a more meaningful and memorable way to recognize employees.
The Shift in Employee Reward Trends
For years, corporate rewards have relied on material gifts—Amazon gift cards, company-branded water bottles, or tech gadgets. While these gifts provide a short-term boost, they often lack lasting impact. Studies show that employees value experiences over material items, making experience gifts the next evolution in corporate recognition.
The Data Behind the Shift
- According to a study by the Harris Group, 72% of millennials prefer to spend money on experiences rather than material things.
- Research from Cornell University found that experiences bring longer-lasting happiness compared to material goods.
- A report by Gallup highlights that engaged employees are 21% more productive and less likely to leave their jobs, emphasizing the importance of meaningful rewards.
Why Gift Cards and Traditional Corporate Gifts Are Losing Effectiveness
- Lack of Personalization – Generic gift cards and company-branded merchandise often feel impersonal and transactional rather than a genuine expression of appreciation.
- Low Engagement – Studies indicate that a significant percentage of digital gift cards go unused, while company swag often ends up forgotten in a drawer.
- Lack of Diversity – Traditional rewards don’t cater to diverse preferences, making it hard to ensure everyone feels truly valued.
- No emotional Value – Employees may appreciate a gift card at the moment, but they are unlikely to remember it in a meaningful way.
The Rise of Experience Gifting in Employee Rewards
Experience-based rewards are changing the game for HR professionals. Rather than giving employees a transactional reward, companies are now offering curated experiences that create lasting memories and emotional connections.
While such rewards have many benefits, these are the key advantages of experiential gifting:
- Universal & Inclusive – experience gifts work for employees across cultures, ages, and preferences.
- Memorable & Engaging – employees remember and cherish experiences far more than a digital gift card.
- Boosts Employee Happiness & Loyalty – experiences improve overall well-being and create a sense of belonging.
- No Shipping Hassles – digital experience gifting makes it easy to reward employees, no matter where they are.
- Aligns with Company Values – experience gifts can reinforce company culture, such as adventure, wellness, or sustainability.
How Companies Are Adopting Experience-Based Recognition
Leading organizations are already shifting toward experience gifting to create meaningful recognition programs. Some examples include:
- Anniversary & Milestone Rewards – Instead of a plaque or a generic gift card, employees receive a choice of exciting experiences, from a weekend getaway to a gourmet dining experience.
- Spot Awards & Peer-to-Peer Recognition – Employees can nominate colleagues to receive a once-in-a-lifetime experience as a way to celebrate achievements.
- Holiday & Year-End Gifts – Rather than another company hoodie, organizations offer employees the chance to explore a new city, try a cooking class, or take a scenic helicopter ride.
Tinggly: A Future-Ready Employee Reward Solution
Tinggly makes experience gifting easy for HR professionals looking to modernize their rewards program. With globally available experiences, sustainable gifting options, and seamless bulk ordering, companies can create personalized, hassle-free, and high-impact rewards for their teams.By moving beyond traditional rewards and embracing experience gifting, companies can create an engaged, motivated, and happier workforce. It’s time to rethink corporate gifting—because the best rewards aren’t things, they’re moments that matter.