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Parago research: Low-dollar rewards strengthen loyalty

Monday, October 17, 2011 — 12:44:58 (EDT)

Lewisville, Texas, Oct. 17, 2011 -- Countless employers have eliminated big bonuses and extravagant end-of-year celebrations. Yet many still seek simple ways to reward their staff and keep employees motivated to ensure their companies remain competitive in the recovering economy. Parago, a leading provider of consumer and corporate incentives, today announced new research that indicates that even a small token of appreciation goes a long way to keep employees motivated and feeling appreciated and loyal to their employers. In fact, 64% said a prepaid card of $50 or less would meet their expectations for an end-of-year reward, with 55% expecting $25.

According to the recently completed survey, most employees do not expect their employers to give end-of-year rewards or holiday gifts this year, yet an even bigger majority indicates that even a little reward would be greatly appreciated. In fact, 81% say that end-of-year rewards are a nice thing to do for employees but should not be expected. This data uncovers a missed opportunity for employers to foster a loyal environment and maintain a productive workforce: respondents overwhelmingly reported positive emotions about an employer that would give a holiday or end-of-year reward, if even a small one. Key findings of the research include:

Small rewards make a big impact: 84% of employees reported that an end-of-year reward of a prepaid card valued at $100 or less would meet their expectations. 55% of employees said it would take just a $25 prepaid card to meet their expectations.

Holiday incentives are not expected this year: 69% of employees do not expect their employers to give end-of-year rewards or holiday gifts this year, with the main reasons being lower company profits, missed quotas, lack of appreciation for employees or the fact that their company does not normally give out holiday rewards.

Rewards will boost morale: 81% of employees said a reward would make them feel either appreciated, motivated to work harder or more loyal to the company. 79% of employees said that receiving an end-of-year reward would mean that they had done a great job and worked hard or that their employer appreciates and/or values them.

Prepaid cards are the incentive of choice: When asked what type of holiday gift they would like to receive, prepaid gift cards backed by Visa or MasterCard came out on top with 57%, over gift cards, company-branded merchandise or cash. An overwhelming 85% of survey respondents said they would feel grateful if they received a prepaid card as a holiday reward this year. When asked about their favorite features of prepaid cards, the majority pointed to the fact that prepaid cards can be spent almost anywhere and at multiple retailers.

"Employees are not expecting rewards this year, but if they received one it would clearly foster positive attitudes and behavior that could help many companies compete in this tough economy," said Juli Spottiswood, President & CEO of Parago. "Whether it is for the holidays or as an end-of-year incentive, our research shows that employee rewards are dearly appreciated, no matter the value. Low-dollar prepaid cards are an easy way to reward employees given the many benefits of the cards - not to mention they remove any guesswork from giving the 'right' reward to a diverse group of people."

Last month Parago launched PROP(TM) (Parago Reward Ordering Portal), a proprietary reward ordering portal that provides large organizations a central destination for ordering, loading, activating and customizing Visa® prepaid cards for incentives and rewards. PROP is a perfect portal for companies seeking a quick and easy way to obtain employee incentives this holiday season.

About Parago

Parago is the innovative provider of rewards-based incentive solutions that deploy technology to drive better results. Parago provides a full range of consumer, sales, channel and employee incentive programs to Fortune 500 companies. Parago has distinguished itself in the rewards-based incentives field for more than ten years by consistent reinvention of legacy approaches, introducing 27 industry firsts and receiving three patents. For more information visit www.parago.com , the Parago blog or Twitter.

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Source: Company press release.