What Problems Do Employee Discount Programs Solve?

By Brandon Carter

Looking at the top of your employee benefits, you see items with clear ROIs.

Health insurance. Paid time off. 401(k) matching. You know what problems those solve and how valuable they are to employees.

But then you move further down the roster and ROI becomes a bit murkier.

Free snacks. Foosball tables. Company swag. They’re cool but it’s harder to quantify their ROI.

The problems they solve don’t appear to so evident.

One exception seems to be employee discount programs.

“Why do I care about employee discount programs?”

Well, let’s talk about slaying dragons for a second.

You got dragons in your office?

Hope not. They’re large, foul-tempered, and have a tendency to burn things.

If you did have a dragon problem, you’d want something or someone to come in and take care of it.

In business, we spend money to solve problems.

Even when we’re buying something to “add value,” there’s a reason we’re looking to add value.

Employee discount programs are no different.

What dragons are they slaying?

The Problems Employee Discount Programs Solve

Before investing in an employee discount program, you can reasonably expect it to solve – or at least help with – these issues:

  • Financial Wellness

This is really the big one. People need more money, yet they continue to take home less and less. It’s no surprise that money is a primary source of stress for most folks.

70% of human resource professionals believe personal financial challenges had a “large or some impact” on employee performance (Humana)

You can pay them more, which you’re probably trying to do. Another option is to help them stretch their paychecks farther.

As a result, companies are leaning into employee financial wellness.

60% of employers say the importance of employee financial wellness has increased over the past two years (Aon Hewitt)

While most of this has focused on areas like retirement planning and personal finance education, many organizations have figured out that just helping employees save on everyday purchases can make a big difference.

And you know what? It works.

83% of employers found financial well-being benefits improved performance and productivity among their employees, while 81% saw an improvement in employee morale (Xerox)

  • Generating Daily Positive Engagement

Ask most employees why they go to work and you’ll hear about paychecks and insurance. They’re not volunteers, and they’ll leave if their compensation goes away.

Even engaged, happy employees probably wouldn’t work if they didn’t have to.

There are people who love their jobs and see the company’s goals as their own, regardless of compensation, then there’s everyone else.

51% of the U.S. workforce is not engaged (Gallup)

Competent employees who aren’t actively sabotaging the company are still valuable. And the more positive interactions they have with the company, the more likely they’ll be to stay and take their work seriously long-term.

How can you create a positive, valuable, everyday interaction with every employee, whether they’re at work or at home? Your best bet is your benefits and perks.

Insurance and PTO can’t be used on an everyday, unlimited basis.

Employee discount programs can. In fact, they require usage. The more employees use them, the more Go to the full article.

Source:: Business 2 Community

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