What is an Employee Discount?

Employee discounts are a popular perk used by many companies.

Typically, an employee discount perk comes in the form of money off (usually a percentage) from products and services from the same company.

These discounts reduce the cost of everyday goods and services, increasing employee satisfaction, loyalty, and the strength of the employer-employee relationship.

However, the benefits extend to both sides.

Employees enjoy access to products at reduced prices, making significant savings and feeling valued by their employers.

In turn, employers benefit from a more content and motivated workforce that works in a positive atmosphere. This often leads to improved results and enhanced brand advocacy through employee familiarity with company products and services.

Overall, happy employees mean higher productivity, lower employee churn, and better rates of sustainable business growth.

Understanding Employee Discounts

Employee discounts aren't just a nice gesture – they're a win-win for both employees and employers. Employees enjoy the increased purchasing power, making their paychecks go further and fostering a sense of appreciation for their hard work.

In turn, companies benefit from a more motivated and loyal workforce, which can lead to better productivity, reduced turnover, and even enhanced brand advocacy as employees become familiar with and enthusiastic about the company's offerings.

Types of Employee Discount

Choosing the right discount types for your employee discount program is essential for maximizing its impact. Consider these popular options:

• Flat-Rate Discounts: A fixed amount is subtracted from the price of a product or service (e.g., $10 off).

  Pros: Simple to understand and calculate. Best for higher-priced items where a fixed amount offers significant savings.

• Percentage Discounts: A percentage is deducted from the retail price (e.g., 20% off).

  Pros: Flexible, adaptable to a wide range of products. Savings scale with the item's price.

• Tiered Discounts: Discounts increase based on factors like length of service, employee role, or purchase volume.

  Pros: Incentivize employee loyalty or specific purchasing behaviors.

• Seasonal Discounts: Discounts offered during holidays, company anniversaries, or an employee's birthday.

  Pros: Add excitement and a sense of occasion to the discount program.

There are also third-party solutions, where companies may partner with brands to offer better discounts and a more diverse range of savings opportunities. Brands may also offer promo codes to other partnered businesses.

For example, a local office business may offer employees a discounted rate when signing up at a local gym, or buying movie tickets from the local cinema.

Examples of US Companies Offering Employee Discounts

Employee discounts can be tailored to the company's industry and values. Some common examples include:

• Bass Pro Shops: As part of their already stellar employee benefits package, employees can enjoy up to 45% off Bass Pro Shop merchandise, and save varied rates on resorts, restaurants, and attractions owned by the brand.
• Chilis: Chili’s staff allows workers on-shift free meals, and discounted meals for when they’re off the clock. Other bonuses offered by the company include money off cell phone packages, movie tickets, child care services, and partnered clothing ranges.
• Chipotle: One of the more famous employee discount packages, the chain offers one free meal per shift for every worker, plus 50% of the menu during non-shift hours.
• Gap: Gap employees receive a straight 50% off all partnered brands, including Gap, Banana Republic, Old Navy, and Athleta. Spouses and domestic partners of employees also receive a 10% discount.
• Macy's: The retail giant offers 20% off store favorites, including cosmetics, accessories, clothing, and even furniture. Employees enjoy a 10% flat rate on all electronics sold in-store.
• REI: By far one of the best discount packages in the industry, REI offers a fantastic 50% off all in-store REI-branded products, plus 30% on vendor merchandise and even 10% on sale items. If booking trips through REI Adventures, employees can save another 30%.

The Two-Way Advantage of Employee Discounts

Employee discounts are a win-win for both employees and companies.

• Employee Benefits:
  • Increased purchasing power: Employees can stretch their budgets further, improving their quality of life.
  • Enhanced job satisfaction: Feeling valued and rewarded boosts morale and overall satisfaction.
  • Deeper product knowledge: Using discounted products firsthand increases product expertise, leading to better customer service.
• Company Advantages:
  • Improved employee engagement: Feeling appreciated motivates employees and strengthens their commitment to the company.
  • Reduced turnover rates: Attractive perks like discounts can incentivize employees to stay, saving the company time and money on recruitment.
  • Organic brand advocacy: Employees who use and enjoy the company’s products are likely to recommend them to others, promoting positive word-of-mouth marketing.

In essence, employee discounts are a strategic investment that promotes a happy, loyal workforce while generating positive returns for the company.

Why Companies Offer Employee Discounts

The decision to offer employee discounts is rooted in a combination of thoughtful strategy and an understanding of the benefits that extend beyond simple monetary savings.

• Fostering Brand Loyalty: Employee discounts encourage employees to use and experience their company's products or services firsthand. This creates a deeper connection to the brand, fostering loyalty that extends beyond the work environment and positively influences the perceptions of friends, family, and the wider community.
• Enhancing Company Reputation: Organizations that prioritize employee well-being cultivate a positive reputation. This extends to both the internal workforce and the external job market. In competitive industries, a reputation as a caring employer can be a significant advantage in attracting and retaining top talent.
• Creating Brand Ambassadors: By using company products or services through employee discounts, staff become familiar with the offerings and often develop a genuine enthusiasm for them. This turns employees into organic brand ambassadors, with everyday conversations carrying the potential for authentic endorsements.
• Strategic Employee Engagement: Employee discounts significantly affect overall employee engagement strategies. Engaged employees are more productive, create a positive work environment, and are less likely to seek employment elsewhere. Discounts contribute to a sense of appreciation and value, driving long-term loyalty.
• Boosting Morale and Motivation: Employee discounts serve as a tangible reminder that a company values its employees. This positive reinforcement can significantly improve workplace morale and motivate employees to go above and beyond in their roles.

How to Set Up An Employee Discount Program

Implementing an employee discount program can boost employee satisfaction, loyalty, and overall company morale. Here's a simplified guide to get you started:

Step 1: Assess Your Needs

Before diving headfirst into discount programs, ask yourself: Why do we need this? Are you hoping to boost employee morale and loyalty?

Attract top talent to your company? Or maybe you want to show your hardworking team that you genuinely appreciate them? Defining your goals will help you shape a discount program that delivers on those objectives.

Step 2: Get Company Approval

You've got a great idea, but to make it a reality, you'll need buy-in from the higher-ups. Craft a brief but compelling presentation highlighting the benefits of an employee discount program.

Back up your claims with data and real-world examples. Then, start discussions with key decision-makers to gain their crucial support.

Step 3: Research Discount Providers

The next step is finding the perfect platform for your program. Explore different providers and carefully compare their offerings. What kinds of discounts do they provide? Is the platform user-friendly for your employees? How strong is their customer support?

These factors are essential for a successful program.

Step 4: Choose the Right Program

It's decision time. Select a program that aligns with your company's goals and – just as importantly – your employees' needs.

Consider the types of discounts available. Are they relevant to your team? Does the platform offer any additional perks that could be an excellent fit for your company culture?

Step 5: Plan Your Launch

Now, it's time to make your program a reality! Work closely with your chosen provider to set things up smoothly. Then, develop a communication strategy that will generate excitement among your employees. Make sure they know exactly how to access these fantastic new benefits.

Step 6: Monitor and Evaluate

Your job isn't done after the launch. Track how your employees are engaging with the program. Gather their feedback – what do they love, and where could things be improved?

Measure your program's success against your initial goals. Is it boosting morale and retention as you'd hoped?

This data will guide you in making any necessary adjustments to ensure your program continues to deliver maximum value.

Choosing the Right Mix

Finding the perfect blend of discounts is key! Consider what your company offers, your budget, and what your employees will find most valuable. Don't be afraid to mix things up – a variety of discount types keeps the program fresh and appealing.

Remember: The goal is to show your employees you appreciate them.

This investment in their well-being pays off in spades, boosting morale, loyalty, and turning your staff into enthusiastic brand ambassadors. A well-crafted discount program strengthens your workplace culture and adds a competitive edge to your company's reputation.