Reward Gateway: Perks are no substitute for pay, but they can stretch it

Here's a trick for the bargain hunters. Secure a price match at JB Hi-Fi, then pay for the item with a discounted e-gift card bought through your workplace benefits app. Two discounts, one purchase. It's the 'double discount' favoured by Sydney mum of two Karen Leong, who has used her workplace benefits on everything from laptops for her children to appliances during a home renovation.

That's according to Kylie Green, Managing Director APAC, Reward Gateway/Edenred, who held up Leong as a case in point. "Karen's approach highlights how employees can maximise their savings by combining workplace discounts with existing retailer offers," Green said.

Over eight years of using the platform, she added, "Leong has saved more than $12,000."

Not small change, and not a bad time to be counting it. Australian households continue to feel the pressure of rising living costs, compounded by an RBA rate hike now at a 15-year high. In that context, Green argued, benefits are best treated not as an occasional treat but as part of the household budget. "Workplace benefits can provide a practical way for employees to make their money go further, particularly when it comes to everyday expenses and larger planned purchases," she said.

Reward Gateway/Edenred's Engage app gives employees access to discounts across categories including supermarkets, electronics and computing, and travel. Its reach is not trivial: according to Green, one in 12 Australians has access to the Engage app through their workplace.

The trick, she said, is habit. "The first step is to understand what benefits are available through your employer and make a habit of checking for discounts before making purchases. Rather than viewing workplace discounts as an occasional perk, employees can incorporate them into their regular spending habits to save on things they were already planning to buy."

Which is the crux of it. "Benefits platforms can provide additional financial value by helping employees reduce the cost of purchases they are already budgeting for," Green said. Such savings can be particularly valuable when budgets are under pressure, she added. "They provide opportunities to reduce spending without necessarily having to give up the products, services or activities that are important to them."

Money on the table

Are Australians leaving money on the table, then? We asked Green if folks aren't fully using the discounts on offer. Green didn't put a dollar figure on it, but pointed to the platform's own numbers: 10% more users made a purchase through the platform compared with the same period in the previous year, based on year-to-date figures to the end of May.

Vendor data, of course, and it measures growth in use rather than how much goes unclaimed. But Leong's tally suggests where the value lies. "The potential value is not limited to one large discount or purchase," Green said. "Her experience highlights how relatively small savings can accumulate over time when employees make workplace discounts part of their regular spending habits."

That puts some of the onus on employers. Benefits, Green said, need to be easy to discover, understand and access. She said this establishes a two way street, where employees are likely to more favourably view their employers. "One practical approach is to communicate benefits in the context of the expenses employees are already managing," she said, using as examples savings in supermarkets, electronics and computing, and travel.

"Ultimately, benefits communications should focus on practical value," she continued. "When employees can see how their benefits help reduce the cost of purchases they already need to make, it becomes easier to understand their relevance beyond the initial offer."

Stacking the deck

Back to that double discount (price match first, gift card second). Leong, Green explained, uses price matching at JB Hi-Fi before purchasing a discounted e-gift card through The Engage App, combining the two savings opportunities.

Timing helps, too. Leong plans larger purchases around the big retail sales, and Green recommends others do the same. "Purchase around major promotional periods, such as Black Friday and Cyber Monday, and check if a workplace discount can be used alongside the retailer's offer."

There is, naturally, fine print. "It's also important to check any exclusions or restrictions, including the retailer's price-matching policy, before purchasing a discounted e-gift card," Green cautioned. "With a little planning, employees can make their workplace benefits work harder for them."

Show me the money

Which brings us to the cheeky question. Almost every worker we have spoken to says they would prefer a crisp 50 in the pocket to a Christmas party or almost any other perk. So why perks, and why not 'show me the money'?

Green conceded the point, but only up to a point. "It's a fair question, and salary absolutely matters. Employees need to feel that their pay reflects their contribution, and workplace benefits should complement that rather than be positioned as a replacement for fair remuneration."

Where benefits earn their keep, she argued, is in making that salary go further. "With consistent use, workplace discounts can deliver far more than $50 in annual savings, particularly when employees combine them with existing sales and promotional offers to maximise their savings."

Leong, once again, is the example. Over eight years, Green said, she has saved more than $12,000, "averaging approximately $1,500 a year. Those savings have helped give her family more flexibility with household spending and larger purchases."

That's 30 crisp fifties a year. Show me the money, indeed.