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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Employee Discounts

Employee discounts are special offers or perks employers provide to their employees, allowing them to purchase goods and services at a discounted rate. These discounts can range from a percentage off the regular price of products and services to exclusive access to certain deals and promotions. 

Employee discounts can be offered on various products and services, including clothing, electronics, travel, entertainment, and more. By offering employee discounts, employers can 

  • Improve employee satisfaction
  • Increase employee retention rates
  • Help increase employee savings
  • Provide additional benefits to their workforce

What are employee discounts?

Employee discounts are special perks or benefits employers offer their employees, allowing them to purchase goods and services at discounted rates. Employee discounts can be offered on various products and services, including clothing, electronics, travel, and entertainment.

Listen, recognize, award, and retain your employees with our Employee engagement software  

Why do employers offer employee discounts?

Employers offer employee discounts to provide additional benefits, improve employee satisfaction, and boost employee morale. Offering employee discounts can also help attract and retain top talent.

How do employee discounts work?

The specifics of how employee discounts work can vary depending on the employer and the type of discount offered. Typically, employees are given a special code or discount card that they can use to receive the discount when making purchases. Some employers may also partner with specific retailers or service providers to offer exclusive discounts to their employees.

Are employee discounts taxable?

The tax treatment of employee discounts can depend on the specifics of the discount being offered. In general, discounts that are offered to all employees and that do not exceed certain limits are not taxable. However, if discounts are offered only to select employees or if they exceed certain limits, they may be subject to taxation.

Are employee discounts a legal requirement?

No, offering employee discounts is not a legal requirement. However, many employers choose to offer employee discounts as a way to attract and retain employees.

How do employee discounts benefit employers?

Offering employee discounts can benefit employers by 

  • Improving employee satisfaction
  • Increasing employee retention rates
  • Boosting employee morale 
  • Attract top talent 
  • Improve the overall reputation of the employer

How do employee discounts benefit employees?

Employee discounts benefit employees by allowing them to purchase goods and services at discounted rates, which can help them save money and improve their financial well-being. Additionally, employee discounts can improve employee satisfaction and morale, which can lead to improved job performance and career advancement opportunities.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

How to start an employee discount program

Starting an employee discount program can help you attract and retain top talent, boost employee morale, and improve overall job satisfaction. Here are some steps you can follow to start an employee discount program:

  1. Define the program's scope: Determine which products and services will be included, and set guidelines around the discounts offered.
  2. Set a budget: Determine how much your company can afford to invest in the program and limit the discounts offered.
  3. Research and negotiate with vendors: Identify vendors willing to offer discounts to your employees and negotiate the terms of the discounts.
  4. Develop marketing materials: Create marketing materials to promote the program to your employees, such as flyers, email announcements, and social media posts.
  5. Communicate with employees: Inform your employees about the program, including how to access the discounts and any guidelines or limitations around their use.
  6. Monitor and evaluate the program: Track usage of the program, gather feedback from employees and assess its effectiveness in achieving its goals.

Examples of companies using employee discount programs

Here are a few examples of brands that use employee discount programs:

  1. Apple: Apple employees are eligible for a 25% discount on all products. They can also receive discounts on software, accessories, and third-party products.
  2. Starbucks: Starbucks employees receive a 30% discount on all products and merchandise.
  3. Nike: Nike employees can receive discounts of up to 40% on all Nike products, as well as discounts on Converse and Hurley products.
  4. Target: Target employees receive a 10% discount on all products, as well as discounts on certain special events and services.
  5. Amazon: Amazon employees are eligible for a 10% discount on all Amazon products, as well as discounts on select third-party products.
  6. Best Buy: Best Buy employees receive discounts on all products, with the discount amount varying depending on the product.
  7. Gap Inc.: Employees of Gap Inc. brands (such as Gap, Old Navy, and Banana Republic) receive a 50% discount on all products.
  8. McDonald's: McDonald's employees receive discounts on meals and other products, with the exact discount amount varying by location.

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