(Editor’s Note: PromoWire by PPAI Media is a running digest of updates from organizations around the promotional products industry. PPAI Media will consider newsworthy entries submitted by any member organization.)

November 7

Gift Cards Beat Cash Incentives In Latest IRF Study

As today’s workforce continues to evolve, priorities are changing among employees – especially about which incentives and rewards are the most powerful motivators. The Incentive Research Federation’s new study, Generational Expectations of Incentives, has uncovered the types of incentives that resonate most with the 939 North American workers surveyed. Key findings include:

  • When asked what form of a reward worth $500 they would most prefer, gift cards for fun and enjoyable purchases (hedonic) and gift cards for everyday purchases like groceries (utilitarian) were in the top three reward preferences across all career stages. Combined, they are more preferred than cash.
  • Where cash and gift cards are removed as reward options, travel rewards are the most preferred, even above time off and flexible work. This holds true across all age groups and income levels.
  • Late stage career workers (51+) express a much stronger preference for drivable domestic reward travel locations over those requiring flights.
  • Paid time off as a reward is far more important to early stage workers than to mid and late career workers. The lower the employee’s income, the more likely they are to select PTO over cash.
  • Across all age groups, more than 90% of workers would take a $500 bonus over giving $750 to a charity in their name.

“To prepare for a rapidly changing workforce, organizations should examine their reward programs to ensure that they motivate the ‘younger’ workers who will soon form the majority,” says IRF President Stephanie Harris. “Generational Expectations of Incentives explores ways that incentive and reward programs can be re-designed to maximize their appeal to young professionals, while remaining relevant to those in the mid and late stages of their careers, whose motivation remains vital.”

View or download a copy of the full report here. .

November 2

Gildan’s Q3 Financials Trend Up In Line With Expectations

Gildan Activewear (PPAI 250187, S13) – the No. 38 supplier on the 2023 PPAI 100 – reports financial results for its third quarter ended October 1. Among the highlights the company reported are these:

  • Net sales of $870 million, up 2%
  • Operating margin of 17.8%, adjusted operating margin of 18.1%
  • GAAP diluted EPS of $0.73 and adjusted diluted EPS1 of $0.74
  • Cash flow from operations of $305 million and free cash flow of $265 million
  • Capital returned to shareholders of $113 million during the quarter through dividends and share repurchases
  • The company has also updated its fiscal 2023 guidance to the lower end of previously provided revenue and EPS ranges while maintaining expected FCF generation above $425 million.

“Our competitive position remains very strong in a challenging environment driven by our industry-leading vertically integrated manufacturing platform,” says President and CEO Glenn J. Chamandy. “We delivered third-quarter performance which came in overall in line with our expectations. We resumed our sales growth trajectory and delivered operating margin within our target range.”