Benefits & Comp • 6 MIN READ
Employee Discount Schemes: A Low-Cost, High-Value Benefit
MAY 20, 2026
An employee discount scheme can deliver significant perceived value at minimal cost to the employer. Here is how to set one up and promote it effectively.
What employee discount schemes offer
Employee discount schemes provide access to discounted prices at a range of retailers, restaurants, leisure providers, and service providers. Typical schemes include discounts on groceries, electronics, travel, holidays, gym memberships, cinema tickets, and insurance. Savings of 5-15% on regular purchases can amount to several hundred pounds per year for an engaged employee. Unlike cash benefits, employee discounts do not attract income tax or National Insurance for the employee (where they are provided through a registered scheme operator), making them tax-efficient for both parties.
Maximising utilisation
The failure mode for employee discount schemes is low awareness and low engagement. Schemes that are mentioned once in the induction and then forgotten deliver almost no value. Maximise utilisation through: prominent placement on the intranet and HR portal, monthly communications highlighting seasonal discounts (Christmas shopping, summer holidays, Black Friday), inclusion in the all-staff communication at least quarterly, and manager briefings to encourage their teams to register and use the scheme. Track utilisation rates and correlate them with engagement scores: high-utilisation teams typically have higher overall engagement.
