How Does Cashback Work For Employees?
What is cashback?
Cashback for employees is a benefit that enables your workforce to earn money on their everyday purchases with major retailers. Whereas discounted purchases give money off, cashback purchases made with participating retailers give money back.
The cash received is a percentage of the total spend of each card transaction. Over time, the money earned via cashback purchases can accumulate to a considerable sum. For example, with our employee cashback card bYond, the average cardholder earns £216 of extra income per year.
How does cashback work?
Cashback helps boost financial wellbeing by letting employees earn cash rewards on their everyday shopping.
Employees still pay full price when shopping with their favourite retailers, but the cashback earned whilst food shopping, booking cinema tickets, having dinner with friends, or enjoying family outings, can be spent as disposable income however they choose.
- ● With bYond, employees add funds to an everyday spending card either straight from their salary or by topping up themselves
- ● Every time they shop with their bYond card (at 85+ high street and online retailers) they earn a percentage of the total as cashback
- ● After each transaction, we calculate the cashback earned and, after 30 days, add it to their bYond card balance so it's ready to spend
As employee perks go, cashback is a way of effectively earning free money from everyday spending habits, which makes it a powerful employee benefit to add to your employee rewards package.
Why cashback is a valuable employee benefit
Our recent research into how the cost-of-living crisis is affecting employees revealed that it's hitting everyone hard and forcing a change in shopping habits.
- ● 85% of employees have had to reduce their expenses
- ● 76% of employees are looking for ways to save money
- ● Money worries impact 1 in 4 employees' ability to do their job.
With the rising price of everyday goods being one of the biggest worries for employees, it's perhaps no surprise to see that 61% are buying less expensive brands or own brand products and 52% are making more sale purchases.
One way to help ease the financial pressure on employees is for employers to use employee benefits to stretch salaries further.
In fact, two-thirds of employees agree that benefits should be part of the solution and more workers are turning to their employers for help. Since the cost-of-living crisis began, there's been a 65% increase in employee requests for financial support to HR decision-makers.
Plus, in a competitive job market, company benefits that act as an extra source of income can boost employee retention and act as a major incentive for attracting job seekers.
As a result, workplace benefits, such as cashback, are no longer fortunate employee incentives; many employees rely on them to help make ends meet.
What are the employee benefits of cashback?
Offering cashback as part of an employee benefits programme is a great way to make your employees' money go further. With bYond, for example, employees can earn up to 15% cashback on every single transaction when using their pre-paid bYond card at a bYond retailer, and up to £900 a year.
A cashback card can also help boost financial employee wellbeing by encouraging smarter spending, which reduces spontaneous purchases in favour of mindful spending with participating retailers. Further benefits to employees include:
- ● Employee engagement: 56% of bYond cardholders say it makes them feel more valued and engaged at work
- ● Employee motivation: The cashback earned can be used for guilt-free, pick-me-up purchases
- ● Employee loyalty: Cashback for employees is a strong selling point for retaining and attracting top talent.
What are the employer benefits of cashback?
Did you know that 80% of employees prefer additional benefits over a pay rise? Plus, 80% of HR professionals believe that a prepaid 'spend and earn' card is an important benefit.
As cashback for employees is a benefit your entire workforce can use, the shared experience can help foster a positive company culture and differentiate your business from competitors. For heightened engagement and employee uptake, we can even provide free marketing support to promote it to staff.
With no admin, approvals, or cost to your business, cashback is a cost effective and simple benefit to introduce for any type of organisation. Plus, because bYond is an e-money product, regulated by the Financial Conduct Authority, it's completely safe and secure.
Introducing bYond: the employee benefit you don't want to be without
With the cost-of-living rising and employees craving financial assistance from employers, bYond is a workplace benefit that helps money go further.
The everyday prepaid spending card lets employees earn up to 15% cashback at a wide range of retailers, restaurants, and supermarkets, which is extremely timely when grocery and food prices are a primary concern for consumers, according to our research.
From homeware and fashion to family meals and groceries, bYond is a financial wellbeing benefit for the entire workforce and could earn cardholders up to £900 in cashback each year.
By earning cashback on the card every time it's used to make a purchase, bYond is a smarter way to spend and a great way to help offset the cost-of-living increases.
Where can employers earn cashback with bYond?
As an alternative saving tool, bYond is hard to beat. Employees can shop smarter with cashback opportunities at over 70 high street retailers and online purchases.
Whether it's earning cashback on weekly food shopping and everyday essentials, replacing or upgrading home appliances and furniture, or preparing for the return to school, with up to 15% cashback available in-store and online it pays to shop with bYond.
bYond can be used at a network of big-name UK retailers including ASDA, Boots, Holland and Barrett, The Body Shop, Argos, B&Q, Ikea, Iceland, Sainsbury's, John Lewis, M&S, Pizza Express, Primark, River Island, Wagamama, Wickes, and Waitrose.
To help cardholders earn more, we're always adding new partners and exclusive offers and competitions.
How does bYond work?
Giving your employees access to bYond couldn't be easier.
- Sign your business up for the BHN Extras benefits platform and you'll receive bYond as standard. There's no fee per employee nor minimum or maximum employee numbers
- Employees create a free BHN Extras account and access bYond (plus other benefits you've selected) via a single sign-on. They request their bYond card and pay a £5 annual fee*
- Once they've been approved, received their bYond card in the post, activated it in less than 60 seconds, employees can load their card with cash so they're ready to spend smarter
- Employees earn a percentage of their spend back for every transaction made using their bYond card. It's automatically added to their bYond account 30 days later and can be saved or spent.
*This fee is easily covered by the cashback earned in their first few transactions
How can employees track their spending?
According to the Financial Capability Survey, 39% of us don't feel confident managing our money.
One of the core advantages of bYond is that it's not a bank account or credit card so there are no overdrafts or APRs to worry about.
As it's a prepaid card, cardholders can only spend money they actually have available on the card. Plus, they earn a percentage back on that money.
Whether they top up as they go or load their card straight from their salary, employees can monitor their activity and track their outgoings via category using the website or app, which makes it easier to make informed financial decisions.
How to sign up to bYond
The great news is that bYond is absolutely free for businesses.
Simply register here and you'll receive a unique employee link which you can share with your employees so that they can sign up.
If you've got more than 750 employees or have some specific requirements, we'd be happy to help. Get in touch at support@byondcard.co.uk
Ready to help your employees save money on everyday costs?
Cashback for employees is a modern-day solution to the cost-of-living crisis. It can lead to smarter spending, a positive work environment, and a loyal and engaged workforce.
Together, let's make your employees' pay go further with bYond. For more information please get in touch today on 0208 159 9430, via our contact page, or by emailing enquiries@workplaceextras.com.
