What is Cashback and How Does it Work?

Cashback is a popular employee benefit

But do you know how it works and the benefits of providing it for your employees?

We all love a bargain, whether it’s a voucher to save on some new clothes or getting cashback on our weekly shop. Plus, these are both great ways to help our salaries stretch that little bit further, which can help keep our finances in check.

If we have money troubles it can cause stress and anxiety, which can affect our mental health. As an employer, there are ways you can help your employees look after their financial wellbeing (one of the five pillars of a good staff wellbeing programme). Whether that’s financial education, offering discounts or even cashback opportunities.

If you’re looking at offering cashback, here’s all you need to know about what it is, how it works and the benefits:

 

What is cashback:

Cashback is a popular employee benefit you could offer to allow your employees to earn some money back on their purchases.

It is based on a percentage of their total spend, with the specific percentages varying across retailers.

For example: if you, or your employees, have a 4% cashback offer for a supermarket and you use that for your weekly shop of £100 you get £4 of that back. Now, this may not seem like a lot, but over a year that could add up to as much as £208.

Cashback is a great way to save money on purchases you were already going to make.

 

How does cashback work:

We have a platform which allows your employees to purchase products or services and can choose from over 400 cashback offers. When they shop they will automatically earn cashback on their purchases. It could be anything from their weekly shop, the latest sports gear, or some new tech.

The savings they make from using the platform go straight into their benefit account, which can then be withdrawn into the current account.

 

How does it benefit employees?

We’re all in a difficult time at the moment, and this can have an effect on our finances. As a business you may not be in the position to offer pay rises or bonuses but offering a cashback scheme can help ease the burden on your employee’s finances.

It can help their salaries stretch a little further and allow them to save money on everyday purchases.

 

Benefits to employers:

Offering a well-rounded employee benefit package, including benefits like cashback has been shown to help with attracting and retaining top talent. 69% of employees would chose one job over another if it offered better benefits, and 75% of employees are more likely to stay with their employer because of their employee benefits package (employee benefits).

 

Find out more:

To find out more about how our online cashback can help your employees, click here. Or, if you would like to speak to one of our experts in employee benefits, why not get in touch? They can help you provide a well-rounded employee benefits package to help your employee’s stay physically, mentally and financially well.

 

Download your free employee health and wellbeing pack

Sources:

Employee benefits – statistics show the importance of employee benefits