The Data Behind Why an Employee Perks and Discounts Program Works

Courtney Shipshock September 11, 2019

As an HR professional, there are several areas that are always top of mind. Talent attraction, retention, turnover, employee engagement, and productivity, just to name a few. A perks and discounts program has the potential to improve those areas, and we’ve got the data to prove it. Check out these 5 statistics that prove the ROI on an employee discount program.

Seventy-eight percent of surveyed employees said the employee benefits package is very or extremely important in their decision to accept or reject a job. (EBRI)

The job market has turned so that employers must compete for the best talent they can find for open roles. So, what does this have to do with employee perks and discounts? Quite a bit, actually! When you’re competing for great candidates, it’s important to know what they’re looking for. And it turns out, more than three-quarters of candidates want to see a developed employee benefits package that’s more than your typical run-of-the-mill, traditional benefits. Do this by beefing up your benefits offering with a voluntary benefit like an employee perks and discounts program, and you can use it as an added bonus that comes with any role your company offers!

Eighty-five percent of employees felt their benefits package failed to provide the support and flexibility required to meet current and financial obligations. (Barclay’s)

Consider your current employee benefits package. How does it help support the financial wellness of your employees? If you don’t feel great about your answer, that’s probably because your benefits package doesn’t offer the right options. And unfortunately, it’s not just your employees that are being affected by this. When an employee brings stress over their financial situation into the workplace, it hurts productivity, engagement, and your bottom line. Worrying about finances at work can cost an employer approximately $2,000 per employee. By investing in a free employee perks and discounts program, you can show support for your employees’ financial wellness and help out your bottom line in the meantime.

Ninety-four percent of millennials and 92% of Gen X’ers say nontraditional benefits make employers more attractive. (ICIMS)

Gen X’ers and millennials currently make up the two largest generations in the labor force, so HR professionals should be doubling down on their efforts to attract and retain those candidates. But attracting candidates who are in two dramatically different stages of life is difficult. Whether your employee needs assistance financing their mortgage, helping out an older family member, or saving on a gym membership, they’ll have those options available to them. An employee perks and discounts program makes it possible to provide an attractive benefit that people of all ages, incomes, and career stages can enjoy.

Productivity losses related to personal and family health problems cost US employers $1,685 per employee per year, or $225.8 billion annually. (CDC Foundation)

Perks and discount programs and employee health and wellness might not seem to be very connected. However, there are more connections than you may think. We know how important the health and wellness of an employee is, both to employees themselves and to the company they work for. So important, in fact, that health and wellness initiatives have been on the rise in the past couple of years. Companies are working hard to put an emphasis on the overall wellbeing of their employees. Finding a perks and discounts program (like PerkSpot!) that offers discounts on gym memberships, healthy snacks, and more allows a company to essentially kill two birds with one stone: you can offer a unique benefit and make it easier for your employees to live a healthy lifestyle!

Seventy-three percent of employees say that customized benefits increase their loyalty. (MetLife)

Every HR professional knows that a loyal employee is an employee they want in their workforce. With concerns like retention and turnover being so high, loyalty in an employee is a quality that can’t be beat. What’s more, a disloyal employee can end up costing a company more than you’d think. To replace an employee, a company usually must expend an average of thirty-three percent of that employee’s salary. Instead of focusing on how to replace the employees you’ve lost, work on retaining the ones you currently have! Incorporate an employee perks and discounts program into your voluntary benefits and improve the loyalty of your employees.

These statistics clearly show the benefits of an employee perks and discounts program. If you’re interested in learning more about how an employee discount program could work for your company, click here!

Why Aren’t My Employees Using Their Benefits?

Courtney Shipshock July 11, 2019

Odds are, if you’re an HR professional, you’ve asked yourself this question once or twice (or maybe several times) before. Unfortunately, you’re not alone. According to a 2017 report by Chestnut Global Partners, an international provider of Employee Assistance Programs, less than 7% of employees use their benefit programs to their fullest extent. Yet, a recent Glassdoor survey found that 80% of employees said they would prefer additional benefits over increased compensation. Obviously, benefits have an incredibly strong impact on employees – they just don’t know how to use them properly.

As an HR professional, you’ve likely spent hours crafting what you believe to be the perfect employee benefits suite. So, why don’t your employees use them all? We think we know the answer. Check out the 3 most common reasons why employees don’t use their benefits. More importantly, learn how you can solve the problem!

1. They don’t understand them.

Let’s face it, employee benefits can be difficult to comprehend. Perhaps it’s your employee’s first job, and they’re navigating the complex waters of employee benefits for the first time. Maybe your employee feels just downright confused, but doesn’t know where to go to clear things up. Whatever it is, it hurts employees who don’t understand how to utilize their employee benefits package best. So, how can you solve this problem?

Improve the way you educate your employees about their benefits. If this solution sounds simple, that’s because it is! We recommend creating a short, anonymous survey and encouraging your employees to be completely honest when they fill it out. Emphasize the fact that their responses will be used to create a better plan for explaining their benefits. Then, do just that. Figure out where the gaps are in knowledge about your current benefits offerings, and then work to fill those gaps with better and more useful information about the different options available and how they would apply to each employee.

2. They don’t know they exist.

When it comes to employee benefits, chances are your employees know about your run-of-the-mill offerings like medical insurance. However, a new trend is creating a suite of voluntary benefits to attract new employees and keep current ones. Unfortunately, many companies haven’t perfected their communication strategy for these benefits. This causes a problem for companies, as voluntary benefits are one of the best ways to recruit, hire and retain employees. But obviously, employees need to know about their voluntary benefits for them to be meaningful. So, how can you solve this problem?

Expand the way you communicate your benefits. Take a look at how you currently communicate the employee benefits you offer. And don’t just limit yourself to one or two communication strategies. Not only should you be utilizing popular methods like physical flyers, emails, and your company’s intranet, but try some outside of the box ideas as well! Hold a quarterly workshop to walk employees through your benefit suite, and offer a small incentive like lunch or a fun raffle for attendance to the workshop. Give ample warning open enrollment is beginning and work on creating answers to questions you frequently get. It will take some experimentation in the beginning, but when you finally find the right amount of communication that works for your employees, their active utilization of benefits will be well worth it!

3. They think they’re only for high-cost items.

Another common misconception about employee benefits is they are only useful for expensive or high-cost items, like health, dental or vision insurance. Even voluntary benefits like a perks and discounts program are commonly thought of to only have deals for costly items, but it’s actually quite the opposite! Most voluntary benefits have offerings that range from more expensive items to deals on your day-to-day products that any employee can afford – and more importantly, will want! So, how can you solve this problem?

Provide your employees with concrete evidence that their benefits work. When you present solid proof like savings numbers or anecdotes from fellow coworkers about how they’ve saved, it makes it much easier for employees to understand that their benefits, including voluntary, are extremely useful and valuable for them. For example, with PerkSpot, you will regularly receive helpful data about how much your employees are saving through their Employee Discount Program, plus which categories and discounts they’re loving!

We know employee benefit programs have an incredibly positive effect on employees. They offer assistance and security for employees, which, in turn, promotes feelings of happiness. As most managers and HR professionals alike know, a happy employee is a productive, engaged, and attentive employee. If you’re struggling to see full participation in your employee benefits package, it’s likely that your employees don’t understand it, don’t know what it fully entails, or they have misconceptions about it. Solve that problem with one of these easy solutions! If you’re interested in learning about new ways to communicate and educate your employees about their Employee Discount Program, click here!

Why Perks and Discounts Should Be Part of Your Voluntary Benefits Plan

Courtney Shipshock May 8, 2019

Times are a’changing, and so are the way companies structure their benefits plans. As the workforce grows and new generations enter it, employers have realized it’s time to change the way they think about their benefits. Enter, voluntary benefits. Voluntary benefits plans are becoming increasingly popular in companies large and small, and they often vary by company. One thing that we think every company should include in their voluntary benefits plan? A perks and discounts program – and here’s why.

But first – what are voluntary benefits?

Voluntary benefits are, at the surface, exactly what they sound like. It’s a plan outside of the run-of-the-mill benefit suite, which typically includes medical and dental. Recently, employers have begun searching for ways they can engage and retain employees and many found the solution in voluntary benefits. These days, voluntary benefits plans have evolved as employers started listening to their employees and taking note of their needs to go beyond the classic plans most companies offer. Mental health and wellness plans, financial planning, and learning and development opportunities are prime examples of ways employers have adapted their voluntary benefits plans in recent years.

So, why should a perks and discounts program be a vital part of your voluntary benefits plan?

Perhaps you’ve already developed a voluntary benefits strategy for your employees that compliments your existing benefits offering. But there’s one thing you might be missing that will bring your plan to the next level. Here are three reasons why you should consider adding a perks and discounts program to your voluntary benefits plan.

Increases Productivity

According to a recent study, almost three-quarters of employees worry about their personal finances. Unfortunately, this worrying happens at work, where it can cost an employer up to $2,000 due to loss of productivity. That’s only one of several reasons why employers should include a perks and discounts program in their voluntary benefits plan.

Allows for Individualization

We know that millennials recently became the largest generation in the workforce, and Generation Z is hot on their tails as they begin to fill internships and entry-level positions. Yet many positions are still filled by Gen-Xers and Baby Boomers. This means we’ll soon have a workforce made up of four generations, all at different stages in their lives and with different financial needs. Some of your employees may be saving for short-term purchases, like groceries or a big trip. Others are thinking much longer-term: houses, family planning, and retirement are on the brain. A perks and discounts program that caters to each individual employee by offering ample amounts of discounts means no employee is left behind. Instead, they get their pick of which discounts will benefit them the most.

Attracts and Retains Talent

Unemployment has been on a steady decline, and companies feel it. They want to seek out new and unique ways to both attract and retain their talent. According to a recent Glassdoor survey, 60% of potential candidates said they strongly consider perks and benefits when considering a job offer. The same survey found 80% of employees said they would opt for additional benefits over a higher paycheck. But the traditional benefits suite won’t cut it, as it’s difficult for these types of benefits to set you apart from other companies hoping to hire or poach your talent. A voluntary benefits plan that offers extra savings opportunities for employees is ideal. It’s a unique addition to your job offer and it shows an invested interest in your employees’ financial wellbeing.

Sometimes, it seems like every element of the HR space is changing. From recruitment and hiring to the benefits you offer, it’s tough to stay current with the evolution of human resources. Let PerkSpot make it easy for you! Reach out today to find out how you can get a perks and discounts program added to your voluntary benefits plan.

4 Office Perks You Need This Fall

Katie Williamson September 12, 2018

The pumpkin spice lattes have come out to play, which means fall is right around the corner! As the leaves change and the days start getting shorter, it’s time to rethink our office life. Here are 4 office perks you need this fall.

Back to School Perks

As we enter back-to-school season, now is a great time to evaluate if student loan perks for your employees. A recent World at Work survey stated that only 4% of employers offer some form of student loan repayment. As times change, this a great way to incentivize employees to not only choose to work at your business, but to stay there for the long haul. The ROI is proven. Companies like Cigna found that every $1 put into the program saved $1.29 in talent management and recruiting costs.

Bus Perks

Warm weather means less time driving as employees pick alternative transport for their daily commute. But as the seasons change, we see fewer employees biking or walking to work, which means commuter perks couldn’t be more timely. By opting into this benefit, employees can save up to 40% on commuting costs in a year. Offering these benefits is a small, easy way to make life a little easier for your employees.

Baby Perks

Is it just us or are the office babies more prominent this time of year? We recently celebrated a baby shower for 3 of our employees (10% of our workforce) who are expecting in the upcoming months. Studies show it’s not just a PerkSpot thing. The most popular month for babies is in September, according to a TIME magazine report. If that’s true, then when could be better to burst out the baby perks? Extended maternity leave, paternity leave benefits, and in-office daycare are just a few ways to keep your workforce parents engaged.

Budget Perks

Consumer Reports says September and October are the best time to buy big-ticket items for your home, like mattresses and appliances. Lucky for your employees, they can save money on these items through their PerkSpot employee discount program and get the best bang for their buck. Since 78% of employees currently live paycheck to paycheck, this perk can go a long way for your employees.

As we enter fall, consider these options in making your office a better place to work. Want to get started with an employee discount program? Get in touch!

Are Perks and Benefits the Same Thing?

Katie Williamson July 12, 2016

We love perks so much we named our company after them.

But what are perks and how are they different than benefits when it comes to the workplace?

Benefits

Benefits are supplemental to salary and cover basic needs like health insurance, 401K plans, etc. While benefits are absolutely essential for companies, they also come at a price. Most benefits offered to employees cost the company something, unlike our favorite counterpart, the perk, which costs little to nothing for employers to implement.

Perks

Perks encompass everything from bike racks and lounge areas in the office to catered lunches and oh yeah, exclusive discounts on your favorite brands. While benefits are often costly, perks can be offered at a relatively low cost to employers but offer extreme value to employees. Offering perks alongside necessary benefits and compensation packages creates a powerful force when it comes to ensuring employees stay engaged and motivated in their offices. However, like all things, just making these perks available in and of itself is not enough to sustain and retain employees. As more and more businesses begin offering these incentive programs, competition increases when it comes to recruitment and retention. While nearly unheard of 20 years ago, workplace perks are more and more becoming the norm. Companies like Starbucks, Southwest Airlines, and other PerkSpot clients realize this, and that’s why offering perks are non-negotiable.

All Perks are Not Created Equal

So now the question is no longer, will we offer a perks program, but which program will we choose? Overwhelmingly, employees today request perks that improve their everyday lives, such as free gym memberships or discounts on everyday expenses such as groceries and cell phone plans. These programs are more likely to resonate with employees because they show that the employer is listening. It reaches the heart of what all employees truly desire: to be heard and understood. PerkSpot’s mission is to make that a little easier for employers. We negotiate the discounts so you don’t have to. We provide the tools to communicate with employees on how to use the platform, where to find the discounts, and even deliver the latest and greatest perks right to their inbox.

Want to learn more? Reach out to us at sales@perkspot.com

Don’t just offer perks. Offer the right ones.

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