By Seif Saghri and Jeff Litvack. Originally published in Voluntary Benefits Voice magazine on voluntary-advantage.com.
In today’s economic climate, businesses are constantly balancing the need to retain talent through competitive salaries with the financial constraints of delivering ever-increasing shareholder returns. When traditional pay raises are not feasible, offering employees access to alternative benefits, like exclusive perks and discounts, can create substantial financial benefits by enhancing their daily purchasing power and extending their take-home income. Through discount and voluntary benefit platforms, companies can provide employees with real savings that feel just as rewarding—and in some cases, even more impactful—than a raise.
Today’s Economic Climate
The impact on employee wallets and purchasing power over the past few years has been dramatic with the cost of entertainment and essentials skyrocketing and becoming unaffordable for many Americans. Some key facts:
- The cost of going to the grocery store has been putting a bigger dent in employees wallets during the past 4 years as food prices have risen by a whopping 25.8%.
- The average cost for a concert ticket has risen 34.3% over the past five years, increasing 23.33% in 2023 alone.
- The average cost of full coverage car insurance has soared to $2,543 in 2024, an increase of 26% in the past year alone with Americans spending spend 3.41% of their annual income on car insurance.
- The cost of taking a family of 4 out to the movies with popcorn has risen to nearly $100. In 2024, the average movie ticket cost is $12 (and is priced as high as $28 in some cities) - which represents a 21% increase in the last three years.
- The cost of going to amusement parks has risen by more than 3x the rate of inflation; the average family of 4 can expect to spend as much as $7,093 in 2025 on a baseline vacation at the larger amusement parks.
The Power of Discounts as a Meaningful Raise
Discount and perks programs offered through platforms like BenefitHub put cash back into employees' pockets. In fact, many employees using BenefitHub report saving over $2,500 annually—a financial boost that can function as a meaningful "raise" without increasing payroll expenses.
These savings are not just limited to niche items; they span everyday essentials and big-ticket purchases alike. By offering discounts in key spending areas, companies can support employees' financial well-being, making it easier for them to manage their budgets and improve their quality of life.
Examples of Savings
Here are just a few examples of how employees can benefit from using BenefitHub’s platform:
- Further Education: Up to 30% off tuition or course fees, helping employees invest in their professional development.
- Warehouse Club Memberships: 60% off Sam’s Club memberships, saving employees on groceries and bulk essentials.
- Auto Insurance Savings: Up to $600 off annual car insurance premiums, reducing a significant household expense.
- Hotel Stays: Discounts of up to 50% off hotels, making vacations and work travel more affordable.
- Appliances and Electronics: 10% off appliances and 2%-10% off Apple products, easing the burden of purchasing new technology.
- New Car Purchases: Savings of up to $2,000 off new vehicles, a substantial discount on a large purchase.
- Fitness Equipment: 15% off Life Fitness gym equipment, encouraging healthy lifestyles.
Broader Savings Across Everyday Spending Categories
Discount platforms like BenefitHub offer hundreds of additional savings opportunities across dozens of additional categories, such as:
- Entertainment: Reduced prices on tickets for sporting events, movie tickets, concerts, and theme parks to take the family out for a day of fun.
- Dining: Discounts at popular restaurants and delivery services, making eating out more affordable and removing the sticker price.
- Apparel and Retail: Exclusive savings on clothing and accessories from major brands and for everyday essentials.
- Pet Care: Special offers on pet supplies and services, helping employees care for their furry companions.
These types of discounts make a tangible difference in employees’ day-to-day living, providing them with access to lifestyle enhancements that might otherwise be out of reach.
Why Discount Programs Work for Employers
Offering employee discounts through platforms like BenefitHub provides several advantages for employers:
- Cost-Effective Compensation: Discount programs don’t require employers to increase wages, helping manage payroll budgets while still boosting employee satisfaction.
- Improved Retention: Employees who benefit from meaningful savings are more likely to feel valued, fostering loyalty and reducing turnover.
- Increased Employee Engagement: Providing discounts aligned with employees’ needs—from education to travel—boosts morale and helps them lead more fulfilling lives.
- Customizable Options: Employers can tailor discount offerings to suit their workforce’s interests, enhancing the relevance and impact of the program.
Communicating the Value of Discounts to Employees
To ensure employees fully appreciate and take advantage of these programs, it’s crucial for companies to communicate the potential savings effectively. Strategies include:
- Highlighting Annual Savings: Show how employees can save thousands of dollars annually through specific examples.
- Providing User Testimonials: Share stories of employees who have benefited from the discounts, reinforcing the program's value.
- Easy Access and Onboarding: Ensure the discount platform is easy to access and offer training or support to help employees make the most of it.
- Regular Updates: Keep employees engaged by sharing new discounts and seasonal offers available on the platform.
Conclusion: A Raise in the Form of Savings
Partnering with employee perks and discount platforms like BenefitHub is a creative, cost-effective way for employers to provide meaningful financial benefits to employees. With discounts across education, travel, retail, insurance, and more, employees can easily save over $2,500 per year—delivering the financial impact of a raise without increasing salaries. For businesses looking to attract, retain, and engage talent in a sustainable way, these programs are a powerful tool that delivers value for both employees and employers alike.
By focusing on the areas where employees spend the most and communicating the program’s benefits clearly, companies can foster a positive, engaged workforce that feels truly supported. Contact us at www.BenefitHub.com to get started.