There’s some good reasons to offer an employee discount when you’re a small business. They work wonders for keeping good employees and here’s a list of some big names who know and use them to their benefi
Reasons to Offer an Employee Discount
Small Business Trends spoke with a few experts on the subject to find out what the best practices are.
Compete with Larger Firms
First and foremost, employee discounts are an excellent way for smaller businesses to compete with larger companies who have bigger budgets. Offering a discount on merchandise or food levels the playing field when you can’t match wages.
If you’re in the food business specifically, an employee discount is an incentive for servers and chefs who need to work long hours.
“A restaurant should offer an employee discount to make it easier for employees to work longer shifts without having to spend their entire paycheck on meals,” says Stacy Caprio from Fiscal Nerd, a company that supplies real time stock quotes to small businesses.
“Think about your specific business type and what makes senses for your situation.”
Simpler than a Raise
Of course, one of the other reasons employee discounts are popular with small businesses is the fact there’s no actual money involved. Offering a percentage off your merchandise to workers doesn’t require the same financial juggling as a raise.
Then there’s employee engagement. Millennials and the up and coming Gen Z’ers are looking for more than just a punch clock and paycheck. Recent stats say that companies that invest in the employee experience are four times more profitable than those that don’t.
Allison VanNest is Head Of Communications at littleBits , a NYC-based technology company. She told Small Business Trends how a 40 percent employee discount benefited both workers and the business.
Best of Both Worlds
“We think it is important for employees in all departments to play with our product,” she says. “Not only does it help them understand how to build and market it better, but it also allows them to create their own inventions in STEAM (science, technology, engineering, art, and math). Best of both worlds!”
Giving employees a discount on your merchandise is also a form of free advertising for your business. This works well if you offer a discount on shirts, hats and other kinds of apparel. Anything that’s got your company logo on it should be considered for a discount if your employees can use it somewhere outside of your office.
Employee discounts are also morale boosters and a great way to strengthen your teambuilding exercises. Making your employees feel like they’re appreciated motivates them to do those little extras which can in turn increase your sales.
Employee Discounts Work
Keep in mind that employee discounts work. Remember that people who work for you love to shop and save money. These perks also help to better the lives of the people who work for you outside the office by giving them exposure to products and other experiences they might not otherwise get.