Everyone loves a good discount, and employees are no exception. Have you ever wondered how to create an employee discount program that is practical and effective?
If so, this article is for you. An employee discount program can be a great focus on employee engagement and loyalty.
According to a Glassdoor survey, 60% of respondents say that benefits and perks are key in deciding whether to accept a job offer.
The most popular benefit companies offer an employee discount program. It usually means that employees enjoy special savings on items or services that they use regularly.
So let's get started by what an employee discount program means!
What is an Employee Discount Program?
An employee discount program is a great, low-cost way to reward employees. The discounts are typically high amount savings on products and services available only to the company’s employees.
Some firms choose to discount a specific percentage of the price. Others offer their employees a set discount on each purchase.
Employee discount program allows employees to go for an exclusive discount while they shop for products or services. The products may range from grocery items to movie tickets. Since these are exclusive discounts, the best part is that only the employees are eligible for these discounts.
The employee discount program is a part of the total rewards strategy that has been proven to work for many companies for several reasons.
Read along to see why and how these corporate programs will benefit you!
Why Are Employee Discount Programs Important?
Even if you've got a comprehensive employee benefits program that covers many basics, it's hard to keep workers satisfied without offering additional perks.
Let's find out what are the key areas where employee discount programs are useful.
1. Your Employees are Actually Interested in it
Unlike other benefits, like life insurance, medical insurance, etc., your employees are interested in your employee discount program.
Your employees want discounts to shop, dine and travel. Employee discount programs let you reward your hardworking employees with savings on products, services, and activities they already use every day.
By taking advantage of employee discount programs, you can show your team how much you appreciate their hard work and dedication.
2. Hiring Dynamic Talent Becomes Easier
You will provide a unique selling point when one of the perks of joining your firm is access to an exclusive portal that offers special discounts. An entire platform that is not available to the open market.
You'll realize the impact you can make while hiring a dynamic talent if you think about it. You can make your talent acquisition more efficient with the almost exact amount of compensation previously offered to your prospect.
Recommended Read: Why Employee Perks Can Help Your Company Win?
3. It Helps to Keep your Competitors at Bay
Losing a vital talent into the hands of a fierce competitor is the last thing you want. The wound runs deeper if your competitor, by their exquisite benefits, lures your employee.
You can keep your competitors at bay by implementing a robust employee discount program.
The discounts available here at Vantage perks are applicable on a wide variety of products ranging from automobiles to grocery items. A platform with benefits on a wide variety of products and services gives your employee ample freedom while going for a product and keeps them satisfied.
4. It is the Most Cost Effective of All Benefits
A lot of businesses don't have a steep budget for employee perks. Nevertheless, perks do play a key role in employee retention and satisfaction.
Employee discounts are a good way to offer benefits without incurring extra costs. By partnering with local businesses, startups can offer employees deep discounts on products and services without having to pay out of pocket.
5. Employee Morale Elevation
Offers as perks and discounts help you make a statement that you care for your employee and appreciate their efforts. This helps in the making of a great working atmosphere.
Another approach maybe is to reward outstanding performance with added benefits and perks.
Vantage Rewards provides exclusive corporate deals, discounts, and cashback on a global catalog of top online and offline brands. It is the perfect example of a platform where you can show your appreciation for your top performers by alloting them rewards points.
Many companies have started to adopt the point-based system of rewarding employees. The higher the number of points they earn, the more rewards they get from a company.
But Why a Point-Based Rewarding System?
In a point-based rewarding system, each employee is part of an employee rewards system where the employer can allot points instead of money to their employees as gifts or rewards.
The employees can redeem these points earned by them and use it to buy goods/services of brands from different categories – like merchandise, travel, lifestyle, etc.
This form of reward policy in your workplace motivates your employee to be more productive, and you will be able to identify an increase in your results.
How To Design an Employee Discount Program?
Employee discount programs are about providing discounts and creating a mutually beneficial relationship between the employee and the employer. But it can also be tricky to get right.
Here’s are few tips to consider while designing an employee discount program to achieve a sustainable and mutually beneficial engagement.
1. The Associated Products And Services
This is the first step taken by most employers. What products and services or brands are associated with the discount program, and will their employees recognize the brand?
It would help if you always were on the lookout for brands with a solid national presence like Samsung, LG, and Toyota.
Well-recognized brands display credibility, even if your employee doesn't use it too often.
2. Local and Indigenous Connection
Employee purchase programs that feature local businesses are more likely to encourage employee spending. By including them, you ensure more sales for these local shops and boost the effectiveness of your discount program.
If you aren't sure which businesses to include, think about where employees go in their free time, like bars, restaurants, clothing stores, and movie theaters. It will help those discounts to mean something to your employees and keep them coming back to you for more.
3. Exclusive Discounts Means More Money Saved
The worst thing you can do is to masquerade public offers as an exclusive offer and calling it benefits.
This is how most employee discounts give supposedly "free discounts." They fill their platform with publicly available coupons and deals that we can find online. This, in turn, backfires on your plan.
The result is mistrust, low employee management, and will distort their views they had on your company.
It would help if you made sure the employee discount programs you are considering are entirely exclusive to your employees and are publicly available. This creates a sense of pride in your employees regarding the work.
Recommended Read: Importance Of Employer Employee Relationship In Companies
4. Relevancy of Your Discounts
Whether your discounts are exclusive or public, the relevancy of your discounts will largely depend on how deep your discounts are.
You should be clear on specific points like the average discount offered on the product both publicly and exclusively.
One more critical aspect you should look out for is in what "sector" your client provides a discount. We understand the value of discount medical surgeries, theft protection, and other such crucial domain. But the underlining fact is that people generally spend a much lesser amount of money in these domains.
According to the Economic Times, a typical working family in India spends about 3% on life insurance and 4% on health care. A large chunk of the upper-middle-class budget is allocated to luxury products and services.
It is very clear from the data above that your discount programs must include luxury or recreational products. This relevancy in the products, like mobile coupons, vacation discounts, etc., promotes a positive environment in your workplace.
5. How Long is The Contract?
Everything, good or bad, will eventually come to an end.
Your contract with the firm providing the discount program does not serve as an exception.
It would help if you found out how long the contract will run. If you decide not to continue with their services, what will be the notice period? Upon completion of the period of the agreement, will it renew itself? These are some of the few questions you need to be wary of while considering.
Now that you have a fair bit of idea about why the employee discount programs are essential and how to make an informed decision, the last thing that you should do is to rush at it.
It would help if you did not assign a low priority to this decision.
It would help if you did not waste your employee's trust or time by providing them with benefits that are nothing but an advertisement.
The questions you ask and the decisions you take will have a deep impact on your employees' well-being and, ultimately, their productivity.
When you do your homework right, you will increase your chances of landing a great program, and along with, it a great partner.