Why traditional employee rewards may be undermining your workforce

Exclusionary practices weaken employee morale

Too often, reward initiatives unintentionally divide teams instead of uniting them. Consider scenarios where only “top performers” are incentivised or invited to end-of-month team braais or celebrations. While these experiential rewards aim to celebrate success, they leave many employees feeling excluded, undervalued, and demotivated. This is because these approaches highlight individual performance while disregarding the collective effort, encouraging unhealthy competition rather than collaboration.

The result is a culture where rewards fracture, rather than strengthen, team cohesion. For rewards to increase productivity and employee loyalty, they must be inclusive, equitable, and reflective of collective contributions.

Are your incentives aligned to the right outcomes?

In the BPO and call centre industry, employees are frequently incentivised based on first call resolution or average handling time. While these metrics appear efficient, they often fail to capture the quality of service or the complexity of customer issues. This can lead to rushed interactions, frustrated customers, and demotivated staff.

Industry research confirms the importance of evolving reward strategies. In the BPO sector, which has one of the highest attrition rates in South Africa, companies that adopted robust, tech-enabled reward programmes saw measurable improvements. A recent study showed that the overall Work Performance Index increased from 3.14 to 4.01 out of 5, while the overall engagement index improved from 71% to 80%. The data underscores how thoughtful, inclusive recognition directly impacts productivity and employee engagement.

What should rewards truly signal?

Employee rewards are more than a gesture, they signal what organisations truly value. They communicate what the organisation values, the behaviours it seeks to reinforce, and whether employees genuinely belong. Effective staff rewards should:

• Recognise both individual and team contributions.
• Reinforce company culture and shared values.
• Support employee training and development.
• Create opportunities for leader-employee connection.

When designed from a human-first perspective, rewards not only increase productivity but also drive employee engagement and strengthen organisational culture.

Prepaid cards: a modern approach to corporate gifting and incentives

PayCentral is helping South African businesses rethink their approach to employee payments and staff rewards through Mastercard gift cards and other prepaid solutions. Unlike traditional rewards, prepaid cards offer employees flexibility and choice, whether they want to use their reward for everyday essentials or personal purchases.

For HR and finance teams, prepaid cards, managed via PayCentral’s self-service platform, reduce the administrative burden of employee gifting and sales commission payments. They can be distributed in bulk, tracked easily, and aligned with targets that drive collaboration rather than competition. By simplifying processes, these solutions enable leaders to focus on connecting with employees and reinforcing positive behaviours.

Year-end gifting made simple

As businesses prepare for year end gifts, prepaid cards offer a versatile solution for corporate gifting. They avoid the generic “one-size-fits-all” pitfall by giving employees freedom of choice, while HR and finance teams benefit from simplified processes and cost control. More importantly, they reflect a genuine investment in your employees.

Building a reward culture that connects

South African businesses have a choice: continue with outdated reward models that risk alienating employees, or embrace modern, inclusive solutions that increase productivity, lower employee turnover, and truly drive employee engagement.

By rethinking staff rewards through solutions like PayCentral’s prepaid cards, companies can deliver recognition that builds teams, strengthens culture, and enhances both performance and employee satisfaction. For South African businesses, partnering with fintechs like PayCentral, also means moving beyond exclusionary practices and embracing rewards that unify, empower, and inspire employees.

Want to find out how PayCentral’s smart gifting helps simplify HR workflows? Visit our blog to learn more.