In today’s dynamic job market, talented employees are hard to find — and harder to keep.
Turnover stands at an all-time high, and it’s putting a dent in organizations’ productivity and profitability.
A recent [Gallup poll](https://www.gallup.com/467702/indicator-employee-retention-attraction.aspx) shows that more than half (51%) of workers are either actively looking for a different position or are open to leaving their current workplace. No surprise: All that shuffling adds up and can take a bite out of the bottom line. [Adecco reporting](https://www.adecco.com/en-us/employers/resources/cost-of-turnover) suggests that replacing an employee can cost upwards of 30% of his or her salary.
Of course, modern companies and their leadership teams recognize this talent management crisis exists. In fact, according to Working Advantage research, it’s one of the primary headaches leadership teams face.
At the end of 2024, Working Advantage surveyed its roster of clients and asked for their top organizational goals and challenges. Retention and recruitment headed the responses (62% and 54%, respectively.) However, forward-thinking employers are refusing to view employee turnover as unavoidable. They’re leaning into innovative strategies to attract candidates and maintain their workforce, such as adding employee discount programs to their benefit packages.
## The importance of non-salary benefits
For job candidates and employees, a company’s employee benefits can prompt people to submit applications, accept offers, and put down roots. Though competitive salaries are attractive, they’re not the only benefits that matter to employees. Non-salary benefits are essential to workers, too.
Having a menu of benefit options beyond compensation allows the employee to construct a personalized benefits plan. And every time the employee uses one of the benefits successfully, the experience creates a positive touchpoint with the employer.
For instance, being able to save on a service or get a discount on a product can be a meaningful reminder that the employer cares. Plus, any benefits that extend to family members can amplify the sense of connection and loyalty to the employer: “I’m getting an incredible rate because my partner works at XYZ Company.”
Of all the possible non-salary benefits choices, employee discount programs are some of the most exciting for the employee, while remaining highly economical for the employer. The employer partners with an employee discount program provider and then lets its people know about the discounts available to them. It’s a very streamlined process, especially when the employer works with an employee discount program designed for 24/7 accessible use.
As employees habitually use their employee discounts, they become more aware of the savings they’re getting. In essence, they’re reaping the benefit of “invisible raises” every time they receive a discount that puts money back in their pockets.
From the employee’s perspective, employee discount programs help them stretch their dollars. But employers get the same budget-stretching benefit because they aren’t covering the cost of the discount; they’re merely passing it along to their employees. Even small businesses and startups that are operating on tight budgets can demonstrate they’re making an investment in the wellbeing of their workers with employee discount programs.
## Improving recruitment conversions with non-salary perks
Although non-salary perks provide employees with an immediate benefit, they’re also useful for increasing applications and improving hiring conversion rates.
For example, a [PeopleKeep survey](https://www.peoplekeep.com/blog/the-most-important-benefits-to-employees) found that 80% of job candidates cared about having access to mental health and wellness benefits. Employee discount programs can certainly play a part in providing more self-care solutions for people who want to improve their wellbeing and work-life balance. And if that’s a benefit that job seekers are actively looking for, they’re more likely to submit for an opening.
Of course, it’s up to the employer to let potential candidates know about their non-salary perks such as discount programs. Initially, this can be done by adding the benefit to job descriptions. That way, applicants are aware that the benefit is part of the company’s commitment to its staff.
Beyond the job description, employers can talk about their non-salary benefits with potential hires throughout the interview process. This helps applicants quantify the value of all the benefits they will receive.
For instance, the employer can point out how employees can use a discount program for deep savings that offset the cost of travel, event tickets, and electronics. From a candidate’s perspective, being able to visualize how to maximize a non-salary benefit can make an employer stand out amid competitors.
## Discount programs as retention tools
Employee discount programs can significantly boost retention by showing employees they are valued beyond their salary. When employers offer personalized discounts, employees feel seen and appreciated. A well-designed discount program reflects an understanding of employees’ diverse lifestyles and preferences.
To know what employees value, the answer is simple: ask them. An annual survey can ensure that the employer is current on their understanding of what its workforce values. If employees sweepingly pivot with their preferences of discount categories and the employer takes action, employees feel heard and valued. This thoughtful approach builds loyalty and emotional connection to the company.
Another key benefit of these programs is their influence on retention during potential job transitions. Employees who actively use their discounts may hesitate to leave their current job. If the savings they enjoy outweigh a small salary bump elsewhere, they’re less likely to make a move. This is especially true when the program supports their lifestyle in meaningful ways and is used as a matter of routine.
For employers, this means a strategic discount program can reduce turnover. It becomes more than just a perk—it’s a reason to stay. When employees consistently save money, they associate that value with their employer. In a competitive job market, this can give companies a significant edge.
There’s no one solution to improve employee recruitment and retention. However, offering employee discount programs helps create tangible value beyond compensation, which can be a powerful motivator to attract and keep high performers.
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