Employee bonuses on a budget

Pay rises in the retail sector are scarce. As a result, the popularity of voluntary employee benefit schemes - which allow employers to extend their disposable incomes by offering discounted vouchers against everyday purchases - are on the increase.

Although large retailers such as Tesco have extensive benefit options such as free shares after working sfor a year and SAYE share schemes, smaller retailers can also offer staff such discount benefits on a range of products and services by partnering with employee benefit providers.

Aperity - which works with various retailers including Signet and Iceland - offers an integrated voluntary benefits scheme comprising cashback, discounts, vouchers childcare and discounted bikes through a single branded internet platform via its Reward Gateway.
Such discounts can give the employee the income boost a retailer in the current market may not be able to offer.

Asperity managing director Glenn Elliott says: “Typically an employee with a grocery shopping and petrol bill of £100 a week and with standard home and car insurance needs will expect to save a minimum of £500 a year and averages of £1000 to £1,500 are entirely feasible for families.” At the £500 saving level, that equates to a 5% tax-free income lift for someone on minimum wage, or 2% at national average wage.

Iceland launched the Asperity system in April last year. HR operations manager Debbie Peel says it has practical benefits because staff can buy vouchers at discounted rates for in-store purchases, or earn cashback on other online shopping purchases with a variety of retailers. “We are offering staff a cheaper way of getting the things they would have to buy anyway,” says Peel. It has proved popular among staff, particularly in these wage-restricted times. Peel says she would have expected its use to decrease after 18 months once the novelty has worn off, but it hasn’t.

Benefits and motivation company People Value is formally launching a product in November that will allow employers to load a debit card with cash direct from their salary, which can then be used as a normal debit card in stores signed up to the scheme. Employees then earn a 5% to 20% cashback that is credited to them the following month. People Value managing director Mike Morgan says:
“That rebate can go into a savings account or back onto the debit card.” He adds that such systems are both cost-effective and quick
to adopt - typically taking four to six weeks.

Such schemes are a good option in the present climate but for those retailers that are really stretched, even simple measures such as a bottle of champagne for employee of the month can help. And if money really is tight then don’t forget the value of a simple but heartfelt thank you - which costs nothing.