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Employee Discount Programs
Employee discount programs are a valuable benefit that many companies offer their employees to enhance their overall compensation package.
These programs provide employees with the opportunity to purchase goods and services at discounted rates, often from a wide range of retailers and service providers.
By partnering with various businesses, employers can offer their staff exclusive access to discounts on everyday items, luxury goods, travel, entertainment, and more.
What is an employee discount program?
An employee discounts program is a benefit offered by employers to their employees, providing them with special pricing and discounts on various products, brands, and services. These programs are designed to save employees money, boost satisfaction, and contribute to employee retention.
What is a workplace discount program?
A workplace discount program is a curated set of exclusive offers provided by employers to help employees save on everyday expenses. These discounts often include retail purchases, gym memberships, wellness subscriptions, travel bookings, and more. By giving employees access to real savings, such programs act as an additional fringe benefit and improve the overall employee experience.
What are the benefits of employee discount programs?
Employee discount programs offer many benefits to employees and employers, enhancing job satisfaction, financial well-being, and overall organizational success. The benefits of employee discount programs are:
- Boost morale and engagement by offering meaningful financial savings
- Support financial wellness and reduce stress from everyday expenses
- Attract and retain talent by enhancing the overall benefits package
- Foster inclusivity by offering discounts that appeal to all demographics
- Add value affordably with low-cost implementation and high perceived benefit
- Encourage work-life balance with leisure and travel perks
- Promote advocacy by aligning perks with employee needs
- Reinforce culture by showing care beyond work responsibilities
- Increase satisfaction and motivation through appreciation-driven perks
What are the types of employee discount programs?
Employee discount programs come in various types, each designed to provide specific benefits and perks to employees. Here are the types of employee discount programs
- Corporate discounts platforms: Access to nationwide or global brand offers
- Wellness platforms: Health-based discounts tied to wellness goals
- Gifting solutions: Curated rewards for occasions and recognition
- Local offers: Employee access to neighborhood vendors and services
- Entertainment discounts: Theme parks, movies, and event tickets
- Financial support perks: Budgeting tools, counseling, and financial education
- Employee purchase programs: Discounts or payroll deductions on tech, travel, and insurance.
What are the best employee discount programs for small businesses?
- Corporate Offers: One monthly email with exclusive entertainment and retail discounts
- Local business collaborations: Partner with nearby shops and services
- Employee Assistance Programs (EAPs): Combine wellness and service discounts
- Vendor-negotiated discounts: Leverage existing supplier relationships for team benefits
Are employee discount programs worth it?
Absolutely. Employee discount programs are a cost-effective way to enhance your benefits package without increasing salary overheads. They contribute to:
- Increased employee satisfaction
- Higher perceived value of compensation
- Improved retention and loyalty
- Stronger employer brand
- Everyday financial wellness support
When strategically implemented, the best employee discount programs can yield high ROI by boosting employee morale and reducing turnover.
Is an employee discount a taxable benefit?
Generally, employee discounts are not considered a taxable benefit as long as they meet certain criteria set by tax authorities. In most jurisdictions, the discount must not exceed a specific percentage (like 20%) of the regular price and should be on products or services the company sells. However, if discounts are excessive or include third-party perks, they may be subject to tax. It’s best to consult a tax advisor or ensure your program is compliant with local tax laws.
Employee pulse surveys:
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
One-on-one meetings:
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS:
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
Based on the responses, employees can be placed in three different categories:
- Promoters
Employees who have responded positively or agreed. - Detractors
Employees who have reacted negatively or disagreed. - Passives
Employees who have stayed neutral with their responses.
Who is eligible for a workplace discount program?
Eligibility depends on the employer’s policies, but typically:
- All full-time employees are covered.
- Some companies extend discounts to part-time staff, contract workers, or family members.
- Eligibility can also be tied to tenure, department, or role level.
For organizations using comprehensive platforms like Empuls, eligibility can be automatically managed and personalized for different employee segments.
How to start an employee discount program?
The steps to create your employee discount program include the following
- Set a budget and define discount limits
- Select popular categories (retail, travel, wellness, etc.)
- Partner with vendors to secure exclusive offers
- Use a platform like Empuls to manage and distribute discounts
- Communicate the program clearly across all internal channels
- Encourage engagement through regular updates and feedback
- Offer personalization by letting employees suggest new vendors
- Evaluate and improve based on usage trends and employee input
15 best employee discount program ideas
Here are some of the best employee discount program ideas to elevate your benefits offering:
- Discounts on dining and food delivery (e.g., Zomato, Swiggy)
- Movie and entertainment ticket deals
- Cashback on e-commerce platforms (Amazon, Flipkart)
- Travel discounts for flights and hotels
- Online learning platform offers (Coursera, Udemy)
- Gym memberships and fitness app subscriptions
- Wellness products and services
- Grocery and daily essentials cashback
- Electronics and gadget offers
- Bookstore and educational supplies discounts
- Commuting benefits like Uber/Ola vouchers
- Home and lifestyle product deals
- Mobile recharges and data plans
- Insurance and financial product offers
- Event and concert ticket discounts
These employee discount program examples not only save money but also boost morale and retention.
How do employee discount programs work?
Employee discount programs are employer-sponsored perks that give employees access to deals from partnered vendors.
- Vendor partnerships: Employers negotiate discounts with local or national retailers, service providers, or online platforms.
- Access methods: Employees can redeem discounts via dedicated portals, mobile apps, codes, or physical discount cards.
- Communication: HR promotes the program through internal channels like email, intranet, or newsletters.
- Feedback and monitoring: Usage is tracked, and employee feedback is collected to improve and expand offerings.
How can Empuls help?
Empuls by Xoxoday offers a comprehensive extrinsic rewards ecosystem that empowers organizations to motivate, recognize, and retain employees meaningfully:
- Automated rewards workflows: Spot, nomination-based, milestone, and peer-to-peer recognition with global scalability.
- 10M+ reward options: Gift cards, merchandise, travel, experiences, and more across 100+ countries.
- Integrated Swag & Gifting: Custom-branded swag, automated dispatch, and milestone-based celebration kits.
- Wall of Fame & TV Mode: Socially showcase achievements and boost peer visibility.
- Sales Incentives & Wellness Rewards: Tie extrinsic rewards to business outcomes and personal well-being.
- AI-powered personalization: Smart nudges, recognition gap insights, and award recommendations to ensure fairness and inclusivity.
Empuls bridges the gap between extrinsic rewards and motivation, making it easy for HR teams and managers to deliver recognition that resonates and retains.
