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5 reasons why employee discounts make for the perfect staff retention strategy

staff retention strategy

Many businesses may shy away from offering any type of employee discounts package to their employees.

For the most part, they are afraid the costs spent won't justify the investment at hand. However, it is critical to note that employee discounts and benefits are so much more than just "perks" and add-ons for employees.

When done comprehensively and correctly, they can be a powerful staff retention strategy and build an ongoing workplace culture with measurable positive outcomes for employers and employees alike.

Keeping your employees happy can have a plethora of positive consequences for your company: employee engagement, increased productivity, less absenteeism and reduced staff turnover to name a few.

When employees feel looked after, cared for and that their wellbeing is taken into account, they generally work and respond in a more betrothed manner.

Discount schemes can be a winning solution to achieve this. According to CIPD, employee benefits offer a way to attract and retain employees, contribute towards improving wellbeing and enhancing staff engagement.

What’s more, Reed defines these benefits as extra incentives provided by employers in addition to a worker’s normal salary and wages. So, don’t be left behind!

Here are 5 ways employee discounts can make a difference to your employees and your business:

1. They enable the recruitment and retention of top talent

In today's saturated market, employees (both current and potential) have the ability to look around for the best possible benefits packages available.

Employers need to offer something that will stand out from their competitors, be it a competitive salary, a top-class employee benefits package or (preferably) both. Employees want to feel looked after and that they are being offered something which matches what they'll be bringing to the team.

It is very rare for employees to stay in one role and receive their memento gold watch or company clock, so to speak. According to a survey on CareerBuilder, employees – especially Millennials and Generation Z – move jobs every +/-2 years.

A comprehensive employee discounts platform or solution has the potential to work as a powerful staff retention strategy, and catapult an organisation forward by offering everyday savings and perks as well as value-added benefits.

If an employee can save money every time they do their grocery shop, go to the cinema or book an exclusive holiday package, they are sure to be more engaged and motivated in their role and the wider organisation as a whole!

2. They promote holistic employee wellbeing

Ensuring your teams are physically, emotionally and financially healthy can make your company stand out. Offering a wide variety of wellbeing discounts to your team shows that you care about them beyond just their day-to-day role.

An employee benefits scheme can incorporate everything from voluntary benefits, such as salary sacrifice options like dental health, private medical, to an EAP that gives employees access to 1-1 confidential counselling.

In addition, offering a financial advisor as a benefit could be potentially transformative for many employees, especially during today's global pandemic and the uncertainties it has brought for one and all.

Employees will most certainly feel a sense of belonging knowing their employer wants them to be healthy, safe and happy.

If an employee understands that they are needed for specific projects as well as a fundamental asset to the organisation and they truly feel it, this will raise morale and positivity all around.

A healthy employee will bring a healthy attitude to the workplace. This ties in with the whole concept of a work-life balance, showing the company cares further than just work, work, work!

staff retention strategy

3. They significantly boost morale

There’s nothing more rewarding for organisational management and leadership teams to see happy, engaged and motivated teams of employees raring to go!

Positivity and motivation in the workplace are contagious and can have a domino effect. However, the opposite is true too; when an employee feels engaged and looked after, they are more likely to go the extra mile.

Most certainly in today's unprecedented times, there is a lull in productivity and performance due to uncertainty, fear and the unknown.

Working from home and without a direct team in sight also creates a sense of loneliness and disengagement. But even pre-pandemic, it remained a consistent job of HR and leaders to ensure morale was high within all teams.

Having an employee benefits scheme in place can be the catalyst for this. For example, offering lifestyle benefits such as discounted gym memberships, savings on meditation apps like HeadSpace and so on, will yield healthier employees.

Helping employees make savings in areas they would typically spend money on can be a fantastic staff retention strategy, helping to boost engagement by showing you truly care about your employees’ holistic wellbeing.

A prime example is up to 57% off cinema tickets, up to 10% off grocery e-vouchers and access to thousands of high street retailers and brands.

4. Promotes a healthy work-life balance

The so-called workplace euphoria – a work-life balance!

An employee benefits and discounts package can include perks such as flexible working and flexitime. This will help employees with their busy lives and never-ending demands which they feel both personally and professionally.

If employees were able to start earlier/later to accommodate the school run, to avoid traffic and to travel off-peak, for example, the chances are employees will be less stressed, calmer and happier.

Another way to offer this balance through employee discounts is to include a concierge service element into the mix.

If employees can delegate and hand over some of the menial tasks they have, such as sourcing a plumber or finding a reputable builder, this will give them more time to focus on their tasks at hand.

In addition, if employee discounts offer savings for things which employees enjoy, this will encourage them to do more of that out of working hours, such as going to the cinema, discounted restaurant opportunities, savings at the gym, and so forth.

5. Boosts performances and reduces absenteeism

Want your employees and wider teams to be loyal? Then show them you care about them holistically. Employees will work harder and want to come to work when there is a reason to do so. They will go above and beyond their call of duty and want to come into work.

An all-inclusive employee benefits package can definitely boost the performance of your teams. Remember: it’s the small things that can make all the difference. The long-term advantages of a staff retention strategy such as this far outweigh the initial upfront costs.

A well-rounded package can also help reduce absenteeism and reduce sick days. It’s estimated that sickness absences cost a business around £500 per employee per year!

By offering discounts and programmes to promote wellbeing, you allow your employees to take an active approach to maintaining their health – the net result is a workforce that is overall healthier and more present.

Feeling inspired?

Does an employee discount scheme sound like something your company can benefit from? What kind of employee benefits package do you think will suit your team? Do you already have something similar in place that you'd like to expand on?

Xexec is a leading Employee Benefits provider offering thousands of employee discounts, benefits and perks which are brilliant for engagement and work wonders as a staff retention strategy. Why not get in touch today and speak to our Engagement Consultants to see how we can best help your business?

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