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Friday, August 7, 2009
TradeStone rewards workers with unique take on gift cards
By Jill Gambon, Special to Mass High Tech
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After coming through a difficult stretch in which her company temporarily froze hiring and salaries in response to the economic meltdown, TradeStone Software Inc. CEO Sue Welch wanted to do something to show employees and customers her gratitude.
The company, which makes software to help retailers design, source and manage merchandise, is now on track to post double-digit sales growth this year. With the wage and hiring freezes lifted, Welch decided it was time to hand out bonuses. But in a twist on a traditional cash payout, Welch is giving the firm’s 95 employees gift cards to shop at the retailers that use her company’s software.
Welch, who founded the Gloucester-based company in 2003, sees the gift cards as a way to reward her employees while also helping her customers, which include Macy’s, Kohl’s, Guitar Center, Lowe’s, Urban Outfitters and Bloomingdale’s. In total, the company is spending $25,000 on the gift cards, with the value of each card dependent on the employee’s position. Workers can pick out the retailer that they want to shop at and then will receive a gift card to that store. “Business is good and our employees have worked so hard,” said Welch.
TradeStone, which is privately held and does not disclose financial details, has benefitted from the trend among retailers to develop their own private-label merchandise to improve profit margins. Retailers use the software to design products, find and compare suppliers, manage orders and logistics, test quality and manage payment processing.
Welch considered various bonus options and decided on the gift cards because it would benefit her clients while also giving employees something with which they could treat themselves. “It’s like mad money. It’s guilt free and they have to spend it on themselves,” she said.
One employee said in an interview that she was enthusiastic about the gift-card bonuses. “It’s a great way to recognize the entire team,” said Jodi Weiner, a product manager. “It’s a nice way of saying ‘we’re pulling through this.’”
Weiner is planning on treating herself to some funky serving bowls from Anthropologie. “I saw this as an opportunity to get something I wouldn’t normally buy,” she said.
While the gift card bonuses were a surprise, Weiner said they’re consistent with the environment at TradeStone, where Welch and other executives make an effort to keep morale high and maintain a fun atmosphere. In the spring, for example, Welch organized a surprise Easter egg hunt for employees.
During a recession when workplace anxiety is high and morale suffers, it’s more important than ever to recognize employee contributions and milestones, said Steve Singer, president of Complete HR, a Cambridge-based human resources outsourcing firm that works with clients on compensation plans. “I recommend clients do more with recognition programs as compensation dollars are shrinking,” Singer said. He has advised clients to target one percent of their compensation budgets for recognition programs to reward employees. He said gift cards, pizza lunches, even certificates of appreciation, are simple but effective ways to boost morale and keep employees motivated. “That stuff goes a long way,” he said.
Jill Gambon is a freelance writer in West Newbury.
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