Employee reward programs have been a longstanding feature of the corporate workplace. Most of these programs exist in some way. However, the basic goal is to reward the desired workplace behavior. They also aim to encourage more of this behavior in employees.
Rewards Program Issues URT Seeks To Solve
Market research, which was performed by Bersin and Deloitte, revealed that in 2012, companies in the US spent about 2% of the payroll outlay on rewards. The data showed that about $46 billion was spent on the programs. In 2013 that had grown to $77 billion and in 2015 it had hit $90 billion.
Most of the funds go to gift cards and merchandise. In 2015, a study showed that businesses, which used non-cash payments, mainly used gift cards and merchandise. About 90% of businesses utilize gift cards and about 75% use merchandise in the rewards programs. Despite the significant corporate spending, this spending may not be effectively implemented.
This usually leads to waste. A study of Fortune 500 companies showed that about a third admitted they had a gift card issued to them that they never used. Another study showed that if a card was not redeemed in 60 days, there was a good chance it would never be redeemed. This has resulted in billions of dollars of gift cards purchased not being spent. The same applies to merchandise. Employees were being given items that they did not find to be of use to them.
In essence, this shows that companies spend about 2% of the payroll on programs that have little or no return on the investment. The system is thus wasteful and inefficient given how much is spent. This is where the URT project comes in.
The Universal Recognition Token Employee Rewards Program Solution
The URT solution will utilize the blockchain. This will help to magnify employee satisfaction while at the same time cutting down employee waste. The main feature of this system is a virtual marketplace. On the marketplace, employees can auction their gifts and preserve the value of the gifts for later use.
When an employee gets a gift or they win a prize, he or she can take it right there or choose to auction it and receive cash. This system will make it possible for an employee to exchange an undesirable gift for value that can be spent on a desired gift.
Besides that, the liquidity of the marketplace will add perceived value to rewards by making it possible to multiply small gifts to be combined and applied to bigger gifts later. The system is intended to make it impossible for HR to force unneeded gifts on employees. Instead, employees will now have all the power. Another benefit of this liquid marketplace is that the giving of generic gifts will be eliminated. Managers will no longer have to hand out gifts from stacks of Noble, Barnes, or Starbucks gift cards.