SHRM Poll: Employee Discount Programs February 15, 2012

SHRM Poll: Employee Discount Programs ©SHRM 2012 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. 2

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

SHRM Poll: Employee Discount Programs ©SHRM 2012 Does your organization have an employee discount program? Small organizationsLarge organizationsDifferences based on organization staff size 1 to 99 employees (19%) 100 to 499 employees (55%) 500 to 2,499 employees (75%) 2,500 to 24,999 employees (84%) 25,000 or more employees (94%) Larger organizations > smaller organizations 4 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.

SHRM Poll: Employee Discount Programs ©SHRM 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.

SHRM Poll: Employee Discount Programs ©SHRM 2012 On what kinds of goods and services does your organization offer employee discounts, and which is the most popular? 6 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.

SHRM Poll: Employee Discount Programs ©SHRM 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.

SHRM Poll: Employee Discount Programs ©SHRM 2012 How does your organization communicate employee discounts to staff? 8 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.

SHRM Poll: Employee Discount Programs ©SHRM 2012 How does your organization communicate employee discounts to staff? Small organizationsLarge organizationsDifferences based on organization staff size 1 to 99 employees (45%) 100 to 499 employees (54%) 500 to 2,499 employees (67%) 25,000 or more employees (94%)Larger organizations > smaller organizations 9 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). Publicly owned for- profit organizations Privately owned for- profit organizations Nonprofit organizations Differences based on organization sector 85%61% Publicly owned for-profit > Privately owned for-profit and nonprofit 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. Comparisons by organization sector

SHRM Poll: Employee Discount Programs ©SHRM 2012 How much do employees value discounts as part of their benefits package? 10 Note: n = 268. Only respondents whose organizations had an employee discount program were asked this question.

SHRM Poll: Employee Discount Programs ©SHRM 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.

SHRM Poll: Employee Discount Programs ©SHRM 2012 Percentage of organization's employees that used at least one employee discount in Note: n = 53. Only respondents who knew what percentage of employees used their organization’s discount program were asked this question.

SHRM Poll: Employee Discount Programs ©SHRM 2012 Demographics: Organization Industry 13 Note: n = 446. Percentages do not total 100% due to multiple response options.

SHRM Poll: Employee Discount Programs ©SHRM 2012 Demographics: Organization Sector 14 n = 443

SHRM Poll: Employee Discount Programs ©SHRM 2012 Demographics: Organization Staff Size 15 n = 444

SHRM Poll: Employee Discount Programs ©SHRM 2012 Demographics: Other 16 U.S.-based operations only73% Multinational operations27% Single-unit company: A company in which the location and the company are one and the same. 30% Multi-unit company: A company that has more than one location. 70% Multi-unit headquarters determines HR policies and practices 51% Each work location determines HR policies and practices 4% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 45% Is your organization a single-unit company or a multi-unit company? Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Does your organization have U.S.- based operations (business units) only or does it operate multi-nationally? n = 467n = 470 n = 335 Corporate (company wide)68% Business unit/division14% Facility/location18% n = 336 What is the HR department/function for which you responded throughout this survey?

SHRM Poll: Employee Discount Programs ©SHRM 2012 SHRM Poll: Employee Discount Programs  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, Methodology For more poll findings, visit Follow us on Twitter: