By Marina Hodges, Senior Director of Product Marketing at Blackhawk Network (BHN)
Employees are the heart of every business. They drive innovation, shape culture, and—most importantly—define the customer experience. Yet, while companies spend countless hours perfecting their products, pricing, and loyalty strategies, they often overlook what truly sets them apart—the people creating those experiences.
Think about the last time you had an exceptional customer experience. Chances are, it wasn’t just about the product, but it had to do with the person who helped you. When employees feel valued and engaged, they create meaningful connections that keep customers coming back. And those connections? They fuel business growth.
But what happens when employees feel disconnected or unhappy? They often provide lackluster customer service and interactions that feel transactional at best. On the flip side, when employees feel appreciated, they’re more likely to go above and beyond with their customer service.
Unfortunately, this scenario of disengaged employees is the reality for many.
Nearly four out of five U.S. workers feel detached from their jobs and
new research shows that 7 in 10 are actively looking for a new one. The challenge for employers is clear: how do you keep employees engaged in a time of widespread disengagement? The answer is multifaceted, but one key factor is meaningful recognition.
The Link Between Engaged Employees and Business Performance
It’s no secret that employee engagement has a direct impact on business success. Engaged employees are often more productive, stay with their organizations longer and are more likely to go the extra mile for customers. In fact,
research shows that rewards positively affect 68% of employees’ loyalty to their employer, and that same number says recognition makes them more productive.
But the challenge is that U.S. employee engagement recently dropped to 31%, its lowest point in a decade,
according to Gallup. When employees feel undervalued, they disengage—and disengagement is expensive. It leads to low productivity, higher turnover, and less satisfied customers. Ultimately, disengagement can translate to lost revenue.
Employers should take a proactive approach to reversing this trend known as “
The Great Detachment”, and a well-structured recognition program is one of the most effective tools available. Afterall, the level of involvement and enthusiasm employees have for their work and workplace directly influences key business outcomes, including work quality, safety, and profitability
Why Digital Rewards Are Best for Employee Recognition
A strong recognition program goes beyond the occasional “thank you.” Today’s employees want timely, meaningful rewards that truly reflect their efforts. A reward three weeks after completing a major project is significantly less meaningful than at the time of completion. That’s where digital rewards come in.
We've established
why employers must recognize their employees. Now, here are four reasons why digital rewards make it easier and more effective.
1. They Make Recognition Instant and Scalable
Traditional rewards programs can be slow and costly. Digital rewards, like eGifts and prepaid cards, enable near-instant recognition. This means that managers and peers can acknowledge achievements in real time. With technology integrations in platforms like Microsoft Teams and Qualtrics, companies can seamlessly embed rewards into existing workflows, making recognition a natural part of daily operations. For employees who don’t use software tools in their daily workflow, such as in-store retail associates, digital rewards can be conveniently delivered via email for easy access. Similarly, for global organizations, digital rewards eliminate geographical barriers, ensuring employees—no matter where they are—receive timely recognition.
2. Employees Want Them
Half of employees say they prefer digital rewards over physical gifts. Why? Flexibility. Digital rewards give employees the freedom to choose how and where to redeem them—whether that’s covering everyday essentials or treating themselves to something special.
3. They Strengthen Workplace Culture
Recognition isn’t just about individual rewards. Because positively recognizing individuals creates a culture of appreciation.
Research found that 85% of employees want to recognize their colleagues, and many want acknowledgment from their boss or leadership team. Digital rewards make it easy to implement company-wide recognition programs that encourage peer-to-peer appreciation and reinforce company values.
4. They Save Organizations Money
Beyond boosting employee morale and engagement, digital rewards deliver substantial financial advantages for organizations. Unlike physical gifts with their shipping costs, inventory management, and handling requirements, digital rewards arrive instantly with none of these added expenses. They also integrate smoothly into your existing systems, eliminating the need for separate reward program software and saving valuable time and resources.
How Employers Can Build an Effective Rewards Program
To build an effective rewards program, employers should focus on recognizing the right behaviors, ensuring appreciation is frequent and timely, encouraging peer-to-peer recognition, and leveraging technology to streamline the process. Remember that employees thrive on regular appreciation; those smaller, consistent thank-yous actually make a bigger impact than one big annual reward. Proactively get your team involved by encouraging peer recognition—it builds engagement and strengthens relationships naturally. And don't overlook how digital rewards can cut through logistical headaches, letting you deliver meaningful recognition instantly, no matter where your people work.
Employee Engagement Should Be a 2025 Priority
Employers have the opportunity to reshape the employee experience in 2025. Recognition and rewards are necessities. They’re essential for retaining talent, improving performance, and ultimately driving business success. When employees feel valued, they bring that positivity into every customer interaction.
