How to Run an Employee Discounts Program Effectively
According to a survey conducted by the SHRM, 55% of HR professionals reported that their employees highly or somewhat valued employee discounts and 77% of organizations offer employee discounts or perks for their employees.
Additionally, a Glassdoor survey found that 79% of employees would prefer new or additional benefits over a pay increase. These statistics highlight the importance of employee discount programs in today's job market and how they can be a valuable tool for attracting and retaining top talent.
Employee discounts have become increasingly popular in the modern workplace and for good reason. They provide a win-win situation for both employers and employees. Employers can enhance their employee benefits package, increase employee engagement and loyalty, and even boost their bottom line, while employees can enjoy special offers and discounts on products and services they use every day.
However, running an effective employee discounts program requires careful planning, execution, and management. In this blog, we will delve into the world of employee discounts, exploring their benefits, and various types, and how to create and manage an effective employee discounts program.
We'll also take a look at some of the most unique and creative employee discount programs of top companies out there. This blog will provide you with valuable insights and inspiration on how to make the most out of employee discounts.
Types of employee discount programs
Employee discount programs can come in various forms, depending on the nature of the business and the interests of the employees. Below are some common types of employee discount programs:
1. Product discount programs
One of the most common types of employee discount programs is a product discount program. This type of program offers employees discounts on products and services that are sold by the employer or its partners. For example, an employee working for a retail store might receive a discount on items sold by the store, while an employee working for a restaurant might receive a discount on meals.
2. Service discount programs
Service discounts are similar to product discounts, but instead of discounts on physical items, employees receive discounts on services offered by the employer or its partners. For example, an employee working for a car dealership might receive a discount on car maintenance services, while an employee working for a gym might receive a discount on gym membership fees.
3. Travel discount programs
Travel discount are discount on travel-related expenses such as flights, hotels, rental cars, and vacation packages. These discount can be offered by the employer or through partnerships with travel companies. Travel discount can be especially attractive to employees who enjoy traveling or who have to travel frequently for work.
4. Entertainment discount programs
Entertainment discounts are discounts on entertainment-related expenses such as movie tickets, amusement park admissions, and concert tickets. These discounts can be offered by the employer or through partnerships with entertainment companies. Entertainment discounts can be a great way to help employees save money on leisure activities and can also be used as a way to reward high-performing employees.
5. Other types of discount programs
There are many other types of discounts that can be included in an employee discount program, depending on the nature of the business and the interests of the employees. For example, an employer might offer discounts on pet care services, home cleaning services, or legal services.
Offering a variety of discounts, employers can ensure that their employees have access to savings on a wide range of goods and services, which can help to improve employee satisfaction and overall well-being.
How employee discount programs benefit employees
Employee discount programs offer numerous benefits to employers, including:
1. Boosting employee morale and satisfaction
Employee discount programs can help to improve employee morale and job satisfaction by providing employees with a sense of appreciation and recognition from their employer. When employees feel that their employer is invested in their well-being, they are more likely to be satisfied with their job and to feel a sense of loyalty to the company.
2. Attracting and retaining talent
Employee discount programs can also be used as a tool for attracting and retaining top talent. In a competitive job market, employers need to offer more than just a competitive salary to attract and retain the best employees. By offering an attractive employee benefits package that includes an employee discount program, employers can differentiate themselves from their competitors and attract top talent.
3. Improving employee engagement
Employee discount programs can also help to improve employee engagement by providing employees with a sense of ownership and pride in their workplace. When employees feel that their employer is invested in their well-being, they are more likely to be engaged in their work and to feel motivated to perform at their best.
4. Enhancing employer branding
Employer branding is an important aspect of attracting and retaining top talent. By offering an employee discount program, employers can improve their reputation as a company that cares about its employees' well-being. This can help to attract and retain top talent, as well as improve the company's overall image and reputation.
5. Increasing employee productivity and performance
When employees feel that their employer is invested in their well-being, they are more likely to be motivated to perform at their best. Additionally, by providing employees with discount on goods and services that they need, employers can help to reduce employee stress and financial burdens, which can also contribute to increased productivity and performance.
How employee discount programs benefit employees
Employee discount programs offer numerous benefits to employees, including:
1. Saving money
The most obvious benefit of employee discount programs is the ability to save money. By receiving discount on goods and services, employees can save money on their everyday expenses and enjoy a higher quality of life. This can be especially beneficial for employees who are struggling to make ends meet or who have a large family to support.
2. Increasing job satisfaction
Employee discount programs can also increase job satisfaction by providing employees with a sense of appreciation and recognition from their employer. When employees feel that their employer is invested in their well-being, they are more likely to be satisfied with their job and to feel a sense of loyalty to the company.
3. Encouraging health and wellness
Employee discount programs can also be used to encourage health and wellness among employees. For example, an employer might offer discount on gym memberships or healthy meal options. By providing employees with access to these resources, employers can help to promote a healthier lifestyle among their workforce.
4. Promoting work-life balance
Employee discount programs can also help to promote work-life balance by providing employees with discount on entertainment and leisure activities. By making it easier and more affordable for employees to enjoy their leisure time, employers can help to reduce employee stress and improve their overall well-being.
5. Boosting employee engagement
Employee discount programs can help to boost employee engagement by providing employees with a sense of ownership and pride in their workplace. When employees feel that their employer is invested in their well-being, they are more likely to be engaged in their work and to feel motivated to perform at their best.
What does a successful employee discount program look like?
A successful employee discount program is one that provides employees with valuable discounts and perks on products and services that they use and enjoy.
A successful discounts program should be relevant and offer a variety of employee perks and discounts that are valuable to employees. It should also be easy to use, provide real value, be well-promoted and communicated, and be regularly evaluated and improved based on feedback from employees and data on program usage and impact.
How to run an employee discounts program effectively
Launching an employee discounts program can be a great way to boost employee engagement, satisfaction, retention and enhance employee’s financial well-being. However, to ensure the program's success, it is crucial to follow a few essential steps.
1. Set clear objectives and goals
The first step is to define what you want to achieve with the employee discount program. This can include improving employee morale, boosting productivity, or increasing employee retention. By setting clear objectives and goals, you can measure the success of the program and make necessary adjustments as needed.
2. Determine the types of discounts and perks to offer
There are various types of employee discounts and perks that you can offer, including product discounts, service discounts, flexible work arrangements, wellness programs, and more. It's important to choose the types of discounts and perks that are most relevant to your employees and align with your business objectives.
3. Select the right discount provider
Choose a reputable and experienced provider that offers a range of discount and perks that your employees will value. Consider providers that offer access to a broad range of products and services, including discount on gym memberships, travel, entertainment, and shopping.
4. Negotiate the discount
When negotiating discount with partner businesses, be sure to negotiate the best possible rates for your employees. Consider offering exclusivity to your partners, meaning they can't offer the same discount to your competitors. This can make your program more attractive to businesses and can help to ensure that your employees are getting the best possible discount.
5. Communicate effectively
Launching an employee discount program is not enough. It's essential to communicate the program's benefits and features effectively to your employees to encourage participation. Use various communication channels, including email, newsletters, social media, and the company's social intranet, to inform your employees of the program's launch, benefits, and how to access it.
6. Customize the program
To increase engagement, consider customizing the program to meet your employee's needs. For example, you may want to provide additional discount during holidays, birthdays, or other special occasions.
7. Offer a user-friendly platform
Your employees should find it easy to access and use the employee discount program. Consider implementing a user-friendly platform that allows employees to access the discount easily, track their savings, and leave feedback.
8. Measure and evaluate the program
To ensure that your employee discounts program is effective, it's important to measure and evaluate its impact regularly. Gather feedback from employees, monitor usage rates, and track key metrics such as employee engagement, retention, and productivity. Use this data to make adjustments and improvements to the program over time.
Examples of companies with amazing employee discounts program
There are several examples of companies that have successfully launched employee discount programs that have resulted in higher engagement and employee satisfaction. Here are three examples:
1. Apple Inc.
Apple's employee discount program, called the "Employee Purchase Program," is available to all full-time and part-time employees. The program offers discount on Apple products, including Macs, iPads, and iPhones, as well as third-party accessories and software. The discount vary depending on the product, but they can be as high as 25% off.
Apple's program is effective because it offers significant discount on products that employees use and value. Additionally, the company has a user-friendly platform that employees can access to purchase products, track their orders, and manage their accounts. The program has also helped to foster a culture of loyalty and pride among employees, who can own the latest Apple products at a discounted rate.
2. PepsiCo
PepsiCo's employee discount program, called the "PepsiCo Employee Purchase Program," offers discount on a wide range of products and services, including cars, electronics, and travel. The program is available to all employees globally and is managed by a third-party provider.
The program is effective because it offers employees discount on products and services that they may not be able to access otherwise. It also helps to create a sense of community among employees who can share tips and advice on how to save money and get the most out of the program. PepsiCo also regularly promotes the program to its employees through various communication channels, including email, social media, and the company intranet.
3. Hilton Worldwide
Hilton Worldwide's employee discount program, called "Go Hilton," offers employees and their families discounted rates at Hilton hotels worldwide. The program is available to all full-time and part-time employees globally and includes discount on room rates, dining, and other services.
The program is effective because it offers employees and their families access to luxury hotel accommodations at a discounted rate. It also helps to create a sense of pride and loyalty among employees who can experience the Hilton brand firsthand. The program also includes a user-friendly platform that employees can access to book their accommodations and track their savings.
4. Warby Parker
Warby Parker, a small eyewear company that sells affordable and stylish glasses, launched an employee discount program to help its staff save money and increase engagement. The program offers discount on eyewear and accessories sold on the company's website.
The program is effective because it offers employees discount on products that they use and enjoy. It also helps to create a sense of community among the employees who can share their love for the brand and its products with others. The company also promotes the program on its internal communication platform, and it has helped to increase employee engagement and satisfaction.
5. Squarespace
Squarespace, a small website building and hosting company, launched an employee discount program to help its staff save money on its services. The program offers discount on website building, hosting, and other related services sold on the company's website.
The program is effective because it offers employees discount on products and services that they use regularly. It also helps to create a sense of community among employees who can share their experiences and successes with each other. The company promotes the program through its internal communication platform, and it has helped to increase employee engagement and retention.
6. Allbirds
Allbirds, a small sustainable shoe company that sells environmentally friendly footwear, launched an employee discount program to help its staff save money on its products. The program offers discount on shoes and accessories sold on the company's website.
The program is effective because it offers employees discount on products that they use and enjoy. It also helps to create a sense of community among employees who can share their love for the brand and its sustainable mission with others. The company promotes the program through its internal communication platform, and it has helped to increase employee engagement and satisfaction.
Conclusion
From being just a nice to have to being a necessity, employee discount programs can be a valuable tool for companies to show appreciation for their employees and enhance their well-being. These programs can provide numerous benefits to both employees and employers, such as increased job satisfaction, promotion of work-life balance, encouragement of health and wellness, and improved employee engagement.
With the help of an effective employee discount program, companies can foster a more positive and fulfilling work experience for their employees, which can lead to increased productivity, decreased turnover, and improved overall company performance.
However, it's important for companies to understand their employees' needs, partner with relevant businesses, negotiate discount, communicate the program effectively, and regularly evaluate and adjust the program to ensure its success.
Employee discount programs are an important aspect of employee compensation and benefits, and companies that invest in these programs are likely to see positive outcomes for both their employees and their bottom line.
FAQs
Here are some frequently asked questions about employee discounts program.
Why do companies offer employee discount programs?
Companies offer employee discount programs as a way to enhance their benefits package, increase employee engagement and satisfaction, and help attract and retain top talent.
What types of discounts and perks are typically included in an employee discount program?
Discounts and perks included in an employee discount program can vary depending on the company and the industry, but may include discounts on products and services such as travel, entertainment, wellness, and more.
How do employees access and redeem discounts through an employee discount program?
Employees can typically access and redeem discounts through an online platform provided by the employer, which may include a website or mobile app.
Are employee discount programs taxable?
It depends on the specific discounts and perks offered through the program. Some discounts may be considered taxable income, while others may be considered non-taxable fringe benefits.
How can employers ensure the success of their employee discount program?
Employers can ensure the success of their employee discount program by offering relevant discounts and perks that provide real value to employees, promoting the program effectively, providing clear instructions and support for using the program, and regularly evaluating and improving the program based on feedback from employees and data on program usage and impact.