Christmas and the New Year are both going to be with us a lot quicker than you think, which means that now is the time to start thinking about how to say ‘thanks and well done’ to your staff, to keep them motivated in the dark days of winter. And that’s even more true in the middle of a recession…

As Andy Philpott, marketing director at Edenred, explains: “The last few weeks of the year will see many companies trying to extract every last bit of hard work and effort to maximise the results and performance from the year.”

Philpott adds that this is why it is important to “plan the reward process so it is spread over the festive period and into the New Year, when businesses can suffer days of lost productivity due the ‘January blues’.”

At year end, vouchers and gift cards seem to be a popular choice for rewards: but not necessarily because employees value them more than other options. Often, it’s the employers making the decision for vouchers and cards. As Kuljit Kaur, head of business development at P&MM, comments: “The recession is impacting the decision makers as the employer is automatically looking to provide the better-than-cash solution and is coming in [to us] with an idea rather than asking for a solution.”

Paper vouchers do still have their attraction for employees, argues David Butler, general manager at National Garden Gift Vouchers: “The beauty of non-monetary rewards is that they can tick a lot of boxes for all parties concerned. They are more cost-effective for the employer than cash awards but result in the same level of performance improvement and have practically the same perceived value.”

However, companies have to explore carefully how the target audience sees the value of the reward offered. Kuljit Kaur observes: “The employer’s brief will focus on what they want to achieve; we take it back one step and look at the audience to steer employers down the right path and ensure the vouchers are the right choice.”

Rewarding staff is not solely about picking the right product and presenting it to the employee: it can also be about giving employees the freedom to choose. Joanne Taylor, corporate sales manager for Asda Business Rewards, comments: “Employers have recognised that rewards need to work harder for them and, at the same time, make their employee’s money go that bit further. You can’t beat gift cards and vouchers where recipients can choose exactly what they want for themselves. This is how an incentive really should work.”

Rob Froome, head of New Look Business Solutions, agrees: “The reward must be aspirational and deliver a tangible treat to the recipient. Brands that represent exceptional value have strong appeal; and gift cards and vouchers represent the widest choice, which is key to recipients in the current climate.”

Making the reward personal is also a factor in motivational engagement. To make the reward “go further and to get the best out of an individual, you have to make the offering as personal as possible. Vouchers offer more choice so the employee can pick rather than being pigeon holed,” says Andrew Johnson, director general of the UKGCVA. “By making it personal, the individual will be happier about the reward given and will remember it more.”

In companies with large staff numbers, this might not seem like an easy task; but offering a choice can ease the pressure for employers. As Steve Baker, head of recognition and incentives at Grass Roots Projectlink, explains: “We all know how hard it is to choose gifts for family and friends. Trying to guess what will appeal to staff is even harder! If you try, the reality is you will only be getting it right for a small number of them. As long as your reward solution allows them to make that choice, then you’ll be pleasing everybody.”

Leisure solutions are also coming to the fore, and it is important for employers to recognise this. Darren Ziff is head of business development at Acorne PLC, which offers a range of voucher and card products including Virgin Experience Days, the Virgin Voucher, Exhilaration and Leisure Vouchers. Ziff points out: “We’ve actually seen a big increase in the employee incentive market with the trend towards staycations and employees wanting to enjoy time away from normal routine with family and friends. Leisure-focussed rewards of any description allow staff to get excited as they plan their diaries and inspire people to try something different.”

Ilona Kogutiuk, head of Smartbox Business Solutions, backs this view up. She says that “a gift such as a memorable experience is perceived as being worth a lot more than the actual cost. Many of our clients have found that rewarding staff with an ‘indulgence’ has a far greater impact on motivation and performance than cash – and the more challenging their targets, the more people want to receive a non-essential item as a reward.”

However, all types of reward and recognition programs require a certain level of communication and company branding. “Without doubt, the key is to listen to employees to establish what motivates them and identify what type of reward they really would hope to receive,” says John Dove, business incentives manager at House of Fraser for Business.

“It’s then just as important to tailor your communications material so that [the employees] and the incentive take centre-stage, and then continue to show your appreciation of their efforts by publicly acknowledging achievement.”

Alex Speed, head of corporate sales at Love2reward, agrees: “If the recipient is receiving a gift voucher, then there is an option to brand up the voucher wallet with the company logo and a message from the board to say well done and thanks – that personal touch is important. Whenever possible, rewards should be presented personally to gain maximum impact – people like to be publicly acknowledged for their efforts. A few words of encouragement and thanks go a long way.”

After all, as Andy Philpott at Edenred concludes, “the way organisations engage with their key people over the Christmas and New Year period will have significant impact on business performance in 2012.”