Employee Discount Programs

by Candace Webb; Updated September 26, 2017

Employee turnover can be expensive when training, loss productivity and recruiting are considered. One way to keep employees happy is to provide incentives, such as a employee discount program. Employee discount programs can include company product discounts, or a larger program that provides employees of the company with discounts on other products.

How They Work

Employee discount programs typically require participants to provide proof of employment at specified companies to receive the discount on merchandise. Proof of employment can include showing a company identification badge, or knowing a pass code only provided to employees.

Company Specific Discount

One example of an employee discount program is when the company itself voluntarily sells its own products to employees and their family member at a substantial discount. Retail stores and restaurants commonly offer such discounts to their employees. For example, Dominos Pizza Inc. offers a 50 percent discount to employees when they order food items during breaks at work.

Business Partner Discounts

Another type of employee discount offers discounts to many different businesses. One example of this style of employee discount can be found at University of Texas at Austin. The university invites businesses to offer discounts to U of t students and faculty members. The advantage for businesses of offering such discounts is that they draw in customers who want to take advantage of the deal.

Advantages

Offering an employee discount on merchandise or services benefits a company by encouraging employee loyalty and retention. Companies sometimes offer discounts to immediate employee family members as well as the employees, further cementing the employee's potential for remaining at the job. The cost of recruiting, training and starting new employees makes it worth providing loyal workers with a discount to encourage employment retention.

About the Author

Candace Webb has been writing professionally since 1989. She has worked as a full-time journalist as well as contributed to metropolitan newspapers including the "Tennessean." She has also worked on staff as an associate editor at the "Nashville Parent" magazine. Webb holds a Bachelor of Arts in journalism with a minor in business from San Jose State University.