Why Employee Discount Schemes Work
26 November 2021
Employee discounts are a popular employee benefit, stretching employee salaries and business budgets further. What exactly are they, how do they support employees, and why should your business be considering offering them? Read on to discover more.
In the UK, there has been a rise in the overall cost of living, which could be impacting your employees' financial wellbeing. If your employees are worried about their finances, it can cause stress and lack of sleep, affecting their mental health.
As an employer, you can support your employees' financial wellbeing in many ways, from offering an Employee Assistance Programme to advising on money-related worries, financial education or salary sacrifice products. You could also offer employee discounts!
Here’s everything you need to know about offering an employee discounts scheme…
What is an Employee Discount scheme?
To put it simply, an employee discount scheme is a way for you to help your teams save money on everyday purchases. Whether it’s cashback on the weekly shop or an eVoucher to help them save on the latest tech.
Plus, they’re a popular employee benefit, and it’s easy to see why! These everyday savings can add up over the year to make a difference to your teams’ financial wellbeing.
What Employee Discounts can do for your business
Discount schemes aren’t just great for your employees! There's also a powerful business case for offering them.
For businesses that can’t offer pay raises, employee discounts can help. The savings from employee discounts can actually work out at far more than someone would receive from a typical pay increase – particularly one in rise with inflation.
This can go a long way to improving staff retention and employee engagement, both of which are key right now with the war for talent employers face. Employee discounts create an organisational culture that cares about the people who are a part of it, making them feel more valued and more likely to stay. Your employees will also come to rely on your discounts as part of their monthly budget, making them less likely to leave you for someone who isn't offering the same.
How do Employee Discounts work?
There are a few ways staff discounts can be delivered. Some companies will create their own discount card to give out to employees and organise deals with venues, retailers, and so on that give money off when their employees show their cards. This can be a nice gesture, but it does take a lot of effort – organisations will have to source these deals and discounts themselves, which may mean giving something in return.
More commonly, companies will use an employee discount provider – someone already working out these arrangements with the UK's biggest brands. It suits a win-win all around because it increases the brands reach to a wider audience, and it suits the companies getting the discounts because they don't have to do the legwork to build and maintain these relationships.
One way discounts can then be accessed is through a dedicated discount platform. Another is in the form of Pluxee eVouchers that employees can purchase, receiving more in voucher value than they paid in cash. This can be done on an ad-hoc basis, or employees can choose to automatically deduct money from their salary every month to put towards vouchers.
Partner with Pluxee UK for more of the best Employee Discounts
We can help your employees’ wages stretch further with our exclusive money-saving deals on everything! Our employee discount scheme can help your people save money from everyday essentials to luxury and leisure activities. Speak to one of our experts today to find out more.