SHRM Poll: Employee Discount Programs

1. SHRM Poll: Employee Discount Programs February 15, 2012

2. Key Findings • How many organizations offer an employee discount program? More than one-half (58%) of organizations have an employee discount program. Larger organizations (those with 500 or more employees) are more likely to have an employee discount program than smaller organizations . • What kinds of goods and services are most commonly offered? The top five employee discounts offered are: computer hardware and software (57%), health/wellness services not covered by health insurance and/or organization’s wellness offerings (55%), goods and services at specific retail stores or retail sites (46%), entertainment (46%), and the organization’s own goods and services (43%). • Which employee discounts are the most popular? Nearly one-quarter (24%) of organizations reported that their own organization’s goods and services were most popular, followed by health/wellness services and entertainment (15% each). Computer hardware and software was the fourth most popular discount (10%). • Do employees value employee discounts? The majority (55%) of organizations reported that their employees either highly or somewhat value these discounts. More than one-quarter (27%) indicated that employees were neutral about employee discounts, and 18% reported little to no value for employee discounts.

3. Does your organization have an employee discount program? Note: n = 486. Respondents who answered “don’t know” were excluded from this analysis.

4. Does your organization have an employee discount program? Comparisons by organization staff size Larger organizations (more than 500 employees) are more likely than smaller organizations (1 to 499 employees) to have an employee discount program.

5. In the past two years, has your organization’s employee discount program increased (e.g., in terms of the value, types and number of discounts offered)? Note: n = 218. Only respondents whose organizations had an employee discount program were asked this question. Respondents who answered “don’t know” were excluded from this analysis.

6. On what kinds of goods and services does your organization offer employee discounts, and which is the most popular? Note: Percentages for “offered” category do not total 100% due to multiple response options. Only respondents whose organizations had an employee discount program were asked these questions. Respondents who answered “don’t know” were excluded from this analysis.

7. Does your organization use a third-party administrator to manage employee discounts? Note: n = 242. Only respondents whose organizations had an employee discount program were asked this question. Respondents who answered “don’t know” were excluded from this analysis.

8. How does your organization communicate employee discounts to staff? Note: n = 268. Percentages do not total 100% due to multiple response options. Only respondents whose organizations had an employee discount program were asked this question.

9. How does your organization communicate employee discounts to staff? Comparisons by organization staff size Larger organizations (25,000 or more employees) are more likely to communicate employee discounts to staff through the organization’s intranet than smaller organizations (1 to 2,499 employees). Comparisons by organization sector Publicly owned for-profit organizations are more likely to communicate employee discounts to staff through the organization’s intranet than privately owned for-profit and nonprofit organizations.

10. How much do employees value discounts as part of their benefits package? Note: n = 268. Only respondents whose organizations had an employee discount program were asked this question.

11. Do you know what percentage of your organization’s employees used at least one employee discount in 2010? Note: n= 267. Only respondents whose organizations had an employee discount program were asked this question.

12. Percentage of organization's employees that used at least one employee discount in 2010 Note: n = 53. Only respondents who knew what percentage of employees used their organization’s discount program were asked this question.

13. Demographics: Organization Industry Note: n = 446. Percentages do not total 100% due to multiple response options.

14. Demographics: Organization Sector n = 443

15. Demographics: Organization Staff Size n = 444

16. Demographics: Other • Is your organization a single-unit company or a multi-unit company? • Does your organization have U.S.-based operations (business units) only or does it operate multi-nationally? n = 467 n = 470 • Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? • What is the HR department/function for which you responded throughout this survey? n = 336 n = 335

17. SHRM Poll: Employee Discount Programs Methodology • Response rate = 18% • Sample composed of 501 randomly selected HR professionals from SHRM’s membership • Margin of error +/- 4% • Survey fielded September 28-October 12, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research