In this emerging cottage industry specializing in alternative rewards, Santa Clara, Calif.-based BeyondWork recently launched a product called GiftPass. The program, used by Charles Schwab and Wells Fargo workers, uses patent-pending technology to create an online mall tailored to a specific company's work force. Employees can redeem certificates or even donate to charities in a virtual store. Fueling their popularity with technology workers, virtually all of the points-based perk programs operate entirely online. Although they may extend a congratulatory handshake in person, bosses officially notify workers that they have won points via email.
Employees can redeem points for prizes offered in online malls.
Workers keep track of their points in online logbooks. Employees who cash in points for a DVD, for example, are much more likely to remember the company fondly whenever they use the machine or see it in their living room, Niv said. After taxes, you'd probably spend it on your Visa bill or something, and you'd never remember that your company gave it to you as a bonus for doing a good job. Although accumulating points may sound like whimsical fodder for a TV game show, human resource experts are seriously scrutinizing whether the pros outweigh the significant cons of the practice. And companies that participate in such programs typically have to pay a monthly fee to the companies that power the Web site and maintain the company stores associated with the programs.