How small businesses can use employee discounts to retain staff

When we talk about employee perks, we don’t mean corporate benefits like stock options or 401k plans. Instead, consider employee discounts. For small businesses, an employee discount program typically includes low-commitment perks like free food, membership discounts, or merchandise deals.

Why provide staff discounts? Because a paycheck alone won’t instill loyalty and improve staff retention in today’s economic market. By offering relevant and personal perks to your team, you can help boost workplace morale, incentivize performance, and reduce turnover. Best of all, a well-chosen employee discount program does not need to impact your business’s bottom line.

Fortunately, you’ve got plenty of options to choose from.

Types of employee discount programs

Staff discount programs

One simple policy for employee discounts is to offer free or reduced pricing on your own goods and services. In a restaurant, for example, the tradition of “family meal” brings the staff together for free food and bonding time before service. If your business is more casual, you could provide staff with a free or half-price meal for each shift worked.

Employee perks can be tiered and based on full- or part-time status, length of service, or even whether they are customer-facing positions. Working on a tiered basis can also incentivize your staff to aim higher and anticipate a future advancement opportunity.

Similarly, your retail business can discount merchandise or apparel as a cost-effective way to reward employees. You might offer deeper discounts on end-of-season, display, or unsold items. With Clover tracking and reporting, you’ll have at-a-glance performance insights to identify the best and worst performing items, locations, times, and even employees. You can also use your Clover POS system to:

• Reward staff for their hard work by applying discounts
• Pool and distribute gratuities
• Calculate commissions for individual employees or the entire staff

Corporate discounts for employees

Some business owners prefer outsourcing their employee perks to a corporate discount program such as Working Advantage or Access Perks. These providers feature a variety of special offers and discounts on products and services that your employees value. Deals range from rental cars to pet insurance, gym memberships, and tickets for live events and attractions. The cost to the employer (you) is generally based on the type and size of your organization. These programs provide lots of flexibility and variety, but some employees may need help navigating them.

Some corporate discount programs enable employees to earn points and bonuses for using their services. They’re likely to need a referral code and an email address to sign up. Your staff can pick and choose the perks that appeal most to them and make purchases online to receive discounts automatically.

When evaluating a discount plan, conduct your own research and, perhaps, an informal survey of your team members. Which employee perks are most appealing to them? Are they looking to save money at the grocery store, or would they appreciate paying less at the gas station? Do they care more about preferred concert seating, or would discounted electronics be more satisfying? The effort will be worthwhile when you identify the discounts that are truly relevant and valuable to your organization.

Creative ideas for employee perks and discounts

As a business owner, you may not be able to build an onsite gym, for instance, but you could try partnering with a local gym or personal trainer to offer a discounted rate for your employees. Get creative with developing your own employee discounts. Consider reaching out to local businesses for unique ideas, such as free guest passes to movie theaters or a discount package for a staff outing. These kinds of collaborations not only provide your employees some great perks but can also help offer opportunities to promote both businesses and deepen community ties.

While not exactly a discount program, developing a charitable program that your team can rally around gives them an opportunity to support a local charity–and could go a long way toward boosting staff morale and retention. Be sure to get your staff involved in brainstorming activities or events. And check with your local Chamber of Commerce for ideas to help you and your team kick start the process.

Perks can be valuable and fun! Think of them as an expression of your business culture. For instance, you could use Employee Reminder from Clover’s App Market to announce free bagels or ice cream in the breakroom or recognize an employee’s birthday or personal milestone. These types of gestures are not costly, but they can provide opportunities to demonstrate your commitment to a happy work environment.

To find the best solutions for your business, check out Clover’s employee management software. These powerful tools can help you measure performance, manage permissions, and incentivize good service. With Clover, you can also introduce a choice employee discount program to help retain, delight, and motivate the staff you have now and attract the staff you may need in the future.

Editorial Team

Insights, Run your business, Staffing, Strategy

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