by HRP President Delise West
Another health insurance rate increase this year? This has been a familiar story for most employers year over year. And if you're like most employers, you have "shared" the burden of premium costs with your employees to the point where you just cannot in good conscience ask them to take on even more of the burden again. As the employer you may also be asking yourself, "How can I enhance our employee benefits at no/low cost to us?"
One way to answer that question is to consider an employee discount program. For those unfamiliar with such programs, employee discount programs enable your employees to obtain discounts on goods and services from outside vendors. Until recently such programs were only available for larger employers but now there are options for employers of all sizes.
What types of discounts?
According to the March 2012 article in SHRM Magazine entitled "Here's the Deal", the most common categories of discounts available are:
- Home items from diapers to lower internet bills to construction and goods at home improvement stores
- ome items, fHomHomElectronics such as computers and cell phones
- Apparel
- Travel including hotels and flights
- Local goods and services such as restaurant and gym memberships
- Seasonal items
Note: don't forget any discounts you can provide to employees on your company's own goods or services.
Where do I start?
- First start by "knowing your audience." Look at your employee demographics and understand what may be of interest to the majority of employees
- Then research discount service providers. Many of the providers are available to employers at no charge. Two providers cited in the aforementioned article included:
- Evaluate vendors. Ask questions such as
- How much time does it take employees to use the service?
- How much time does it take to manage?
- From a financial perspective is it worth it?
- Be assertive and ask for greater discounts
Determine Your Communication Strategy
Employees will not use the plan unless you do an effective job of "marketing" the plan. Again, consider your employee "audience." What are the most effective communication tools with your staff? Email? Intranet? Payroll stuffers? I would suggest considering all of these and market the plan periodically throughout the year. Don't forget to include the discount program on the list of benefits you review with new hires.
Some vendors will also ask to communicate directly with your employees but remember you can control how much or how little they do this. You likely do not want employees bombarded, especially during the work day.
So put down those scissors and coupon organizing pouches and get employees excited about saving money on goods and services they buy anyway.
