Award bonuses with gift cards - a growing trend

An article in today's Washington Post announced the new FDA chief's suspension of their gift card program to award informal bonuses. He wants to be sure that there is a clear criteria for receiving the cards, 160 of which were ordered at $250 apiece "to reward employees for their hard work." They'll start the program up as soon as the chief is assured that everything was done "by the book."

Using prepaid cards for incentive pay is a proven way to reward employees. Rather than run bonuses through payroll, the cards are stockpiled, to be handed to employees when goals are met, or superior performance is rewarded. Cards in small denominations can be used for spur of the moment "attaboys" that increase employee loyalty.