Workplace discounts could help stretch household budgets, but many employees don’t know what’s on offer
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As cost-of-living pressures continue to weigh on Australian households, employees are looking harder at where their money goes, and workplace benefits are being asked to deliver more practical value than a standard perk.
Kylie Green, Asia-Pacific managing director at Reward Gateway | Edenred, said the company’s data shows that eight in 10 Australians have referred to an ongoing cost-of-living crisis in the past 12 months.
“As the cost of living continues to put pressure on Australian households, employees are looking more closely at where their money goes, particularly when it comes to everyday essentials and larger purchases,” Green said.
Benefits beyond base salary
According to Green, workplace benefits can add value beyond base salary by helping employees reduce the cost of purchases they are already making. Through platforms such as Reward Gateway | Edenred, employees can access savings across categories, including supermarkets, electronics and computing, and travel.
Green said this matters at a time when household budgets are under pressure. Workplace discounts allow employees to cut the cost of items they are already budgeting for, whether that is groceries, electronics, household appliances, or travel. The savings can be particularly useful on larger expenses, where the dollar value saved may be more significant.
Employees can also access these savings without necessarily having to give up the products, services, or activities that are important to them. When used regularly, even small discounts can accumulate over time and help free up money for other household expenses, she said.
For employers, Green said benefits that deliver tangible financial value are one way to support staff beyond their salary. When employees can see how their benefits help them manage everyday expenses, those benefits become a more meaningful part of the overall employee value proposition (EVP).
While salary remains an important part of the EVP, Green said, benefits that deliver practical savings can provide additional value when household budgets are stretched.
A case study in accumulated savings
Green pointed to the experience of Karen Leong, who has saved almost $12,000 through Reward Gateway | Edenred. Leong, she said, has saved more than $12,000 over eight years by using the platform for everyday purchases as well as larger expenses.
Green said the example shows how relatively small savings can build into a significant amount when employees make workplace discounts part of their regular spending habits.
Leong developed a strategy of stacking workplace discounts with retailer promotions and price matching. Green said that by checking retailer promotions and purchasing discounted e-gift cards through the platform, employees may be able to combine savings and reduce the cost of purchases they were already planning to make.
Her approach also highlights the value of planning, Green said. Combining workplace discounts with retailer promotions may help employees maximise savings on intended purchases.
How many employees are missing out?
Green did not put a figure on how many Australian employees may be missing out on discounts available through their workplace. She said that through Reward Gateway | Edenred, one in 12 Australians has access to the Engage app through their workplace, which she described as an opportunity for employees to access practical savings across a range of everyday spending categories.
“Rather than focusing on how many employees may be missing out, it is important to make sure people understand the benefits available to them and how easily they can incorporate them into their regular spending,” Green said.
She said workplace discounts can sometimes be overlooked when employees are unfamiliar with what is on offer or do not realise the range of categories they can access.
Communication and education
For employers, Green said the focus should be on making benefits easy to find and clearly communicating the savings available. Showing employees how to use discounts for purchases they already make can help demonstrate their value, and the more relevant the benefits are to everyday life, the easier it is for employees to see how they support household budgets.
Education plays a role here, she said. That includes showing employees which retail categories are available, how to access discounts and how to check whether workplace offers can be combined with existing promotions.
Green said Reward Gateway | Edenred data shows supermarkets are the leading retail category on its platform, followed by electronics and computing, and then travel. She said these categories show how workplace benefits can support both everyday spending and larger planned purchases.
“It is about making the savings easy to understand and demonstrating how they can make a difference over time,” she said.
Rethinking the EVP
Looking ahead, Green said HR leaders have an opportunity to examine how their benefits offering can deliver practical value in employees’ everyday lives. She said supporting employees goes beyond salary alone, and benefits that help reduce household costs can provide another meaningful form of financial support.
That starts with understanding the types of expenses employees are managing and ensuring the benefits on offer are relevant to those needs, she said. Discounts across supermarkets, electronics and computing, and travel can help employees save on purchases they are already budgeting for.
Clear communication and easy access are also important, Green said, so employees understand what is available and how to build those benefits into their everyday spending.
“Ultimately, a strong employee value proposition is about the overall value employees receive from their employer,” she said. Benefits that deliver tangible savings can help employees make their money go further while giving employers another practical way to support their people beyond base salary.
RELATED TERMS
Benefits include any additional incentives that encourage working a little bit more to obtain outcomes, foster a feeling of teamwork, or increase satisfaction at work. Small incentives may have a big impact on motivation. The advantages build on financial rewards to promote your business as a desirable employer.
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
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