How To Design an Employee Discount Program: Ideas and Top Programs

Employee discount programs offer special pricing and discounts on products, brands, and services. Companies partner with vendors to provide deals that save employees money, boosting satisfaction and helping retention. Popular offerings include discounts on retail, restaurants, travel, mental health support, learning and development opportunities, etc.

This article provides insights into creating a practical and effective employee discount program.

Everyone loves a good discount, and employees are no exception. Have you ever wondered how to create a practical and effective employee discount program?

If so, this article is for you. An employee discount program can greatly 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 employees enjoy special savings on items or services they use regularly.

So let's get started with 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 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 through gift cards.

An employee discount program allows employees to get an exclusive discount while shopping 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.

How to Design an Employee Discount Program?

Step 1. Identify Program Goals & Target Audience

Goals: Determine the main objectives of your discount program, such as boosting morale, increasing loyalty, or driving sales of specific products.

Target Audience: Decide who qualifies for the discounts—whether it's all employees, full-time only, or by department. Consider including family members to broaden appeal.

Step 2. Choose Discount Structure

Products or Services: Select which items or services will be discounted, either from your own offerings or through partnerships with other businesses.

Discount Percentage or Fixed Amount: Decide whether discounts will be a flat percentage off, variable depending on the item, or a fixed dollar amount.

Step 3. Establish Eligibility & Limitations

Employee Eligibility: Define who can participate based on factors like employment status, tenure, or department.

Exclusions & Limitations: Specify any products/services not included in the discount and set usage limits for employees.

Step 4. Program Delivery & Communication

Delivery Method: Determine how employees will access discounts, whether through a code, card, or online platform.

Communication Strategy: Develop a clear plan to inform employees about the program's details, eligibility criteria, and how to use the discounts effectively.

Step 5. Monitor & Update

Track Program Performance: Monitor how employees use the discounts and gather feedback to assess if goals are being met.

Update & Adapt: Be ready to adjust the program based on feedback and usage trends to keep it effective and relevant.

Additional Tips:

• Survey Employees

Before launch, survey employees to understand their preferred types of discounts.

Read our blog on: How to Design an Employee Survey: Best Practices and Tips

• Partner with Businesses

Collaborate with other businesses to offer a wider range of discounts at minimal cost.

• Promote the Program
  Ensure employees are aware of the program and its benefits through regular updates and promotions.

Top 10 Employee Discount Program Ideas

Businesses may implement several innovative ideas for employee discount programs to increase employee engagement, loyalty, and retention. The idea you want to implement will depend on your organization's culture, finances, goals, and values. Consider the following suggestions for employee discount programs:

1. Retail Discounts

Partner with nearby retailers or online merchants to provide employees exclusive discounts on various goods and services, such as clothing, electronics, home goods, and more.

2. Wellness Services

Offer discounts on fitness center memberships, yoga courses, meditation apps, exercise equipment, and wellness retreats to promote employee health and well-being.

3. Travel Deals

Provide discounted rates on hotels, flights, car rentals, and travel experiences to make travel more affordable and accessible for employees.

4. Food & Dining

Partner with restaurants, grocery stores, meal delivery services, and catering companies to offer employees discounts on dining options and grocery purchases.

5. Entertainment Deals

Offer savings on movie tickets, concerts, sporting events, and theme park admissions to provide employees with enjoyable leisure activities at reduced costs.

6. Technology Deals

Provide discounts on computers, laptops, software, and mobile phones to support employees' productivity and personal technology needs.

7. Investment and Personal Growth

a. Education Opportunities: Offer discounts on online courses, professional development programs, and tuition reimbursement to foster continuous learning and career advancement.

b. Financial Services: Provide savings on banking fees, investment products, and financial planning services to help employees manage their finances effectively.

8. Everyday Needs

a. Automotive Discounts: Offer discounts on car purchases, maintenance services, gas stations, and auto insurance to assist with commuting and vehicle-related expenses.

b. Home Services: Provide savings on home repairs, cleaning services, and landscaping to support employees in maintaining their homes.

c. Healthcare Savings: Offer discounts on health insurance premiums, co-pays, prescriptions, and healthcare services to promote employee well-being.

d. Subscription Services: Provide discounts on streaming services, music subscriptions, meal kits, and other subscription-based services for entertainment and convenience.

e. Parenting and Childcare: Offer discounts on childcare centers, babysitting services, educational toys, and family-friendly activities to support working parents.

9. Company Specific

a. Exclusive Company Products: Provide discounts on products or services offered by the company to enhance employee engagement and loyalty.

b. Seasonal Specials: Offer limited-time discounts around holidays or special occasions to celebrate and reward employees.

10. Flexible Benefits

Allow employees to choose from a variety of discount options based on their preferences and needs, potentially using a points system or customizable benefit platform.

10 Leading Companies That Provide The Best Employee Discount Programs

1. Vantage Perks

Vantage Perks is the one-stop employee benefits and discount platform to supplement an organization’s perks and benefits programs at no cost to the organization or its employees. It has a global catalog of popular online merchants and in-store retailers, enabling employees to select benefits that align with their interests.

Vantage Perks integrates seamlessly with the HRMS with a simple and easy-to-use interface.

2. Corporate Offers

Corporate Offers is a New York City startup providing a free employee discount program with exclusive entertainment offers like Broadway tickets and Disney parks access. Remote access is limited, but participation is high. Corporate Offers differentiate with strong local deals, added rewards programs, minimal emails, and strong security like two-factor authentication.

3. Perkspot

PerkSpot empowers employees and association members with an all-in-one platform to access voluntary benefits, personal insurance, and consumer product and service discounts. Their proprietary technology enables a seamless one-stop shop for work and life perks.

4. Abenity

Abenity's Employee Discount Program works in 10,000+ cities to help companies engage talent by saving employees $4,500+ yearly.

5. Lifecare

With over 250 employees, Lifecare differentiation comes from targeting work/life balance rather than only discounts. Their offerings, like Lifemart, Mothers at Work, concierge services, and homework helpers, aim to improve employee well-being.

6. Perkbox

With a mission to keep employees everywhere happy, healthy, and motivated, Perkbox partners with over 4,000 companies globally to deliver meaningful rewards and benefits tailored to each worker. Their expansive yet personalized approach to employee perks engages staff across all locations.

7. Access Development

As a discount pioneer since the 1980s, Access Development offers the largest U.S. private network with 300,000+ local and national deals. The Access Perks program customizes its branded discounts for employers of all sizes.

8. Entertainment Benefits Group (EBG)

EBG's employee perks division includes the brands Tickets At Work, Plum Benefits, and Working Advantage. With its vast size and scale, EBG has become the Ford of the employee perks industry - not necessarily the most exciting offerings, but the dominant leader based on sheer breadth. EBG provides various verticals and options spanning categories like tickets, travel, electronics, recreation, etc.

9. Rewards Getaway

Operating in 23 countries, Reward Gateway partners with over 1,800 leading companies globally to deliver employee discounts and savings. Their solutions empower employees to save on essentials and special purchases like holiday gifts.

10. Empuls by Xoxoday

Empuls partners to provide exclusive discounts empowering financial well-being. Deals save on planned and unplanned monthly and yearly expenses - from groceries to car repairs. This allows companies to augment benefits and talent strategy by enabling savings across life's costs.

Benefits of Having a Corporate Employee Discount Program

Even if you've got a comprehensive employee benefits program covering many basics, it's hard to keep workers satisfied without offering additional perks.

Let's find out the key areas where employee discount programs are useful.

1. Your employees are enthusiastic about it.

Unlike traditional benefits such as life insurance or medical coverage, employee discount programs directly appeal to your workforce's interests.
Employees eagerly seek discounts for shopping, dining, and travel, making these programs a valuable way to reward their dedication.

Offering savings on everyday products, services, and activities shows your team tangible appreciation for their hard work and commitment.

2. Hiring dynamic talent becomes easier

Offering exclusive access to a portal with unique discounts not available elsewhere gives your company a competitive edge in recruiting top talent. This perk is a distinctive benefit that shows your commitment to employee well-being beyond traditional compensation. It simplifies negotiations by providing savings on everyday expenses, which can sway prospective employees. This approach enhances your company's appeal as an employer known for valuing employee satisfaction and fostering a supportive culture. Ultimately, this unique offering can significantly enhance recruitment efforts by aligning the interests of talented candidates with your company's values and goals.

3. Elevates employee morale

Employee discount programs significantly boost morale by offering savings on a wide range of products and services. These discounts reduce financial stress and enhance overall well-being. Employees feel valued and appreciated, leading to higher job satisfaction and loyalty. Additionally, shared access to these benefits fosters camaraderie and teamwork, creating a positive work environment that promotes engagement and motivation.

4. It Helps to keep your competitors at bay

Losing a vital talent in the hands of a fierce competitor is the last thing you want. The wound runs deeper if your competitor lures your employee with exquisite benefits.

You can keep your competitors at bay by implementing a robust employee discount program.

The discounts available here at Vantage perks are applicable on various products ranging from automobiles to grocery items. A platform with benefits on various products and services gives your employee ample freedom while going for a product and keeps them satisfied.

5. It is the most cost-effective of all benefits

Increasing employee satisfaction and retention is crucial for businesses, even those with limited budgets for perks. While bonuses are important, employee discounts offer a cost-effective alternative. By collaborating with local businesses, startups and small companies can provide valuable discounts on various products and services without additional financial strain. This approach not only enhances employee benefits but also demonstrates a commitment to supporting local economies.

Frequently Asked Questions About Employee Discount Programs

1. How do employee discount programs work?

Answer: Generally, this is how the programs work:

• Companies collaborate with vendors and service providers to secure exclusive deals and lower employee prices.
• HR departments promote the discount program internally and manage employee membership.
• Employees register to get the savings through an online portal or mobile app offered by the discount program provider.
• The platform displays discounts from hundreds of national and local firms in categories such as dining, retail, travel, etc.
• Employees visit the portal to print coupons or use their work ID or confirmation to redeem in-person or online offers.
• The responsibility for determining eligibility, overseeing the collaboration, and continuously updating offers is on the providers.
• Employers use analytics to monitor program usage to gauge engagement and return on investment.

2. What are the benefits of an employee discount program?

Answer: The best benefits of an employee discount program are:

• A significant discount program can boost morale as employees feel valued and supported financially. It differentiates you as an attractive employer compared to companies without discounts.
• It serves as a budget-friendly enhancement to your existing benefits package.
• Discounts also strengthen the employer-employee relationship by showing you care about staff's well-being and expenses outside work.

Overall, a thoughtful discount program makes employees feel appreciated, provides financial assistance, enhances your brand, delivers ROI, and fosters trust.

This article is written by Susmita Sarma, a digital marketer at Vantage Circle. She was involved with media relations before shifting her interest to research and creative writing. Apart from being a classical music buff, she keeps a keen interest in anchoring and cooking. For any related queries, contact editor@vantagecircle.com