Best Employee Discount Programs for Retention 2026

Sarah Williams
Senior HR and Benefits Strategist
February 24, 2026
12 min read

Introduction

In 2026, employee discount programs are emerging as one of the most effective company perks for improving retention among Canadian teams. These staff discount programs empower employers to provide meaningful benefits and perks that not only save employees money on their daily expenses but also cultivate a stronger sense of loyalty. In Canada’s highly competitive job market, where the cost of employee turnover can amount to six to nine months of a salaried employee's pay, forward-thinking HR leaders are prioritizing employee perks that offer tangible, real-world value.

As the cost of living continues to rise in provinces like Ontario and British Columbia, these discount programs serve as accessible workplace perks solutions. By partnering with a diverse range of retailers, service providers, and local businesses, companies can give their staff exclusive access to savings on groceries, fitness memberships, travel, and more. This strategy aligns perfectly with Canadian employment standards and CRA guidelines on taxable benefits, ensuring alignment with CRA guidelines, where most third-party employee discount programs are treated as non-taxable benefits when no direct employer subsidy is involved.

Looking ahead to 2026, specialized platforms focused on corporate discount programs are simplifying implementation for businesses of all sizes. Whether you're managing a small business in Alberta or a rapidly growing company in Quebec, these programs significantly enhance your company benefits and perks, positioning your organization as an employer of choice. GoKlaim, for example, expertly integrates employee discount platforms with a wider array of flexible employee benefits, enabling Canadian HR teams to streamline their perks administration and deliver exceptional value.

What Are Employee Perks?

Employee perks are non-wage rewards designed to boost job satisfaction and foster loyalty beyond an employee's base salary and standard benefits package. In Canada, these perks can range from gym memberships to retail discounts and are carefully structured to comply with provincial labor laws and federal tax regulations. The most common perks for employees often fall into categories such as financial savings, wellness support, and work-life flexibility.

Retail discounts for employees are particularly popular because they address immediate household needs, making a noticeable impact on an employee's daily life. For instance, a staff member in Toronto who saves 20% on groceries or 15% on utilities feels the financial relief instantly. Unlike taxable bonuses, many employee benefits discounts are classified as non-taxable under CRA rules when offered through group partnerships.

These perks are also instrumental in building a positive company culture, as layering in-office perks like coffee bar discounts or subsidized vending machines can create a strong sense of community. For remote teams, digital employee discount platforms extend this same value across the nation, ensuring everyone feels included. Research indicates that employees who have positive experiences with their perks are twice as likely to trust their employers and report better overall health.

Employee Perks vs Benefits: Key Differences

The distinction between employee perks and benefits is crucial: perks are typically centered on fun, everyday rewards like staff discount programs, whereas core benefits cover essential needs such as provincial health plan supplements or group RRSP contributions. Perks are designed for immediate gratification, while benefits aim to provide long-term security. The flexibility of perks is one of their greatest advantages.

For example, a health spending account (HSA) allows employees to claim receipts for items like fitness gear or therapy sessions, while a corporate discount program offers upfront savings at partnered retailers. The pros of perks include low setup costs and high engagement rates, though a potential con is the need to track usage to prevent overuse. In contrast, benefits require more administrative effort but offer significant tax advantages under CRA personal tax credits. In practice, a blended approach that combines both perks and benefits is the most effective strategy for maximizing retention.

Small businesses often start with perks to remain competitive and then introduce structured benefits as they grow. Ultimately, the pros and cons of employee perks balance out, as they can quickly boost morale but require diligent vendor management. When tied to tenure, company perks like discounts can deliver exceptional returns by increasing savings with each year of service.

Why Offer Staff Discount Programs?

Staff discount programs are a powerful tool for talent retention, demonstrating that employers are invested in their employees' financial well-being, especially in a high-inflation economy. By alleviating financial stress, these programs significantly reduce employee turnover, which can be incredibly costly for businesses in terms of recruitment and training.

These programs function by negotiating bulk discounts with national chains like Loblaws, Canadian Tire, or Cineplex, as well as with local businesses in various regions. Employees can access these savings instantly through dedicated apps or membership cards, creating a positive loyalty loop where longer tenure unlocks even deeper discounts, a model successfully used by major Canadian retailers.

The data strongly supports this approach, showing that workers with access to development-linked perks, including discounts, have a 34% higher retention rate. In a post-pandemic work environment where remote work has become standard, perks and employee discount programs help bridge geographical divides. Employers who offer robust perk programs report a twofold increase in trust from their employees, which contributes to holistic employee wellness and a more engaged workforce.

How Do Employee Discount Programs Work?

Employee discount programs function through centralized platforms that bring together deals from hundreds of vendors into a single, accessible hub. Employers subscribe to these platforms, customize the offerings to suit their team's specific needs, and then provide access to employees through a mobile app, email invitations, or integration with their existing payroll system.

The process is designed to be straightforward and compliant with Canadian privacy laws like PIPEDA. Employers can select a platform, join pre-vetted partnerships with retailers across different provinces, and onboard their staff with unique login credentials. The platform handles all the verification to ensure the deals remain exclusive, and employees can redeem their savings instantly by scanning a QR code or entering a discount code at checkout. One of the biggest advantages is that the administrative costs are kept low, often amounting to less than $1 per user each month, making it a perfect solution for small business employee perks.

Can Employee Perks Improve Retention?

Yes, employee perks can absolutely improve retention, with flexible options being cited by 95% of employers as having a high impact on employee loyalty. Discounts for employees, in particular, help stretch their budgets further, which reduces the financial stress that is often a primary driver for seeking new employment. In Canada, perks like these align perfectly with current wellness trends, as employees who value corporate wellness perks tend to stay with their companies longer, especially when these are combined with wellness spending account benefits.

A study from Quebec revealed that employees who were satisfied with a company’s perks were 2.4 times more likely to report feeling healthy and committed to their jobs. As we look towards 2026, the question of whether perks can boost employee engagement through discounts is met with a resounding yes. Gamified platforms can reward participation, directly tying savings to performance, and remote workers often report higher loyalty when they have national access to these programs.

What Are the Best Benefits and Perks?

The best benefits and perks for 2026 are those that successfully combine savings, wellness, and flexibility. Among the top choices are employee discount programs, flexible work hours, and health spending account perks, all of which address the diverse needs of the modern workforce. Retail discounts are a leading choice due to their universal appeal, allowing employees to save money on everyday essentials like fuel at Petro-Canada or electronics at Best Buy.

Wellness perks, such as discounted gym memberships, complement a WSA for staff by reimbursing expenses for activities like yoga classes that may not be covered by provincial health plans. These types of company perks consistently outperform more trivial offerings like free snacks because they deliver tangible, long-lasting value and a significant return on investment.

Best Employee Discount Programs for Canadian Businesses

In 2026, the best employee discount programs are those that prioritize ease of use, scalability, and full compliance with Canadian regulations. GoKlaim, along with other platforms like Perkopolis and Benevity, are leaders in the field, offering access to over 100,000 deals specifically tailored to different provinces. Perkopolis is an excellent choice for mid-sized firms, boasting strong partnerships in Ontario and Quebec and featuring tiered access based on tenure to encourage long-term retention.

Benevity takes a unique approach by focusing on social impact discounts, blending savings with charitable giving, which is ideal for wellness-focused teams and particularly resonates in eco-conscious British Columbia. GoKlaim truly excels in its delivery of flexible employee benefits, seamlessly embedding discounts within its broader employee rewards platforms. Its CRA-compliant structure is especially well-suited for small businesses, as it automates claims processing alongside wellness spending account benefits, simplifying administration for HR teams.

  • Deep savings on groceries and essentials from national chains.
  • Travel discounts for flights and hotels via partners like Expedia.
  • Fitness and gym memberships at 20-50% off.
  • Tech and entertainment deals, including streaming services.
  • Home services like internet bundles from Bell or Rogers.

These categories cover everyday needs and make it simple for Canadian employees to realize value quickly, reinforcing program engagement and helping HR demonstrate measurable ROI through redemption rates and satisfaction scores.

Staff Discount Program Reviews and Comparisons

When comparing employee discount platforms, it becomes clear that there is a trade-off between customization and simplicity. While a platform like Perkopolis may offer a higher volume of deals, GoKlaim distinguishes itself with its exceptional integration capabilities. The pros of Perkopolis include its vast network and mobile-first design, but its fees can be higher for smaller groups. Benevity is strong in its purpose-driven approach, but it may offer fewer everyday deals. An employee discount program comparison reveals that platforms equipped with robust analytics consistently outperform static lists.

For instance, GoKlaim's intuitive dashboard allows HR teams to track redemption rates, providing clear evidence of the perk's value to executives. When you compare employee rewards platforms, it is essential to focus on the density of Canadian vendors, as global platforms often fail to address the specific nuances of provincial markets. The top employee benefit companies report engagement lifts of 20-30%, and the best workplace perks providers always emphasize security and scalability to ensure a seamless user experience.

How to Set Up Company Perks

Setting up company perks begins with a thorough assessment of your team's needs, which can be effectively accomplished by conducting surveys. Use the feedback you receive to prioritize corporate discount programs, focusing on the areas that matter most to your employees, whether it's travel savings for your sales representatives or grocery deals for your administrative staff. The following steps provide a clear roadmap for Canadian employers:

  • Audit your current benefits and perks to identify any gaps.
  • Research PIPEDA-compliant employee discount platforms.
  • Launch a pilot program with a single department in your province to test the waters.
  • Roll out the program company-wide, providing comprehensive training to ensure everyone understands how to use it.
  • Monitor engagement and satisfaction through HR metrics.

A good starting point is to budget 1-2% of your payroll for these programs and partner with providers that offer white-label apps to maintain your company's branding and create a cohesive employee experience.

Conclusion

In conclusion, adopting the best employee discount programs can be a transformative step in redefining retention strategies for Canadian employers. These platforms offer a powerful and cost-effective way to show appreciation for your team’s hard work while simultaneously easing their financial burdens. By prioritizing high-quality staff perks programs, businesses can not only cut down on turnover but also cultivate a vibrant and positive company culture. To unlock success in 2026 and beyond, start with a comprehensive audit of available platforms today and discover how you can elevate your employee experience, one discount at a time. The right program will not only help you retain your top talent but also position your company as a leading employer in a competitive market.

Give your team access to meaningful perks.
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GoKlaim supports employee discount programs and flexible benefits for Canadian employers.

Frequently Asked Questions (FAQs)

1. What are employee perks?

Employee perks are non-wage incentives, such as discounts and flexible work hours, that go beyond a standard salary to boost job satisfaction. In Canada, these perks are a key strategy for enhancing retention while remaining compliant with CRA regulations.

2. Why offer staff discount programs?

Staff discount programs are highly effective at reducing financial stress and lowering employee turnover. They provide a high return on investment by fostering loyalty, especially in the competitive Canadian job market.

3. What is an employee benefit company?

An employee benefit company specializes in administering various perk and benefit plans, from discount programs to health spending accounts. The best Canadian providers ensure full tax compliance and simplify administration for employers.

4. Can employee perks improve retention?

Yes, the right employee benefits can significantly improve retention, with some studies showing a 34% increase when perks are aligned with employee needs. Discounts, in particular, are excellent for building daily loyalty and engagement.

5. How do you set up company perks?

To set up company perks, begin by surveying your staff to understand their priorities, then select a suitable platform and launch a pilot program. For best results, integrate the program with your HR systems to track engagement and measure success.

6. What are the best benefits and perks to offer?

The best benefits and perks are those that offer a combination of savings, wellness, and flexibility. Popular choices in Canada include employee discounts, wellness accounts, and flexible work arrangements that address everyday costs.

7. Is an employee discount program worth it?

Yes, an employee discount program is definitely worth the investment. These programs consistently lead to higher employee engagement and have a proven track record of boosting retention, all while keeping costs low.

8. How do wellness spending accounts work?

Wellness spending accounts (WSAs) reimburse employees for preventive health and lifestyle expenses. In Canada, WSAs are generally treated as taxable benefits to the employee, while remaining deductible for employers. Staff can easily submit their receipts for eligible items and activities through their employer's online portal.

9. How much do employee discount programs cost?

The cost of employee discount programs typically ranges from $0.50 to $5 per active user per month. Many platforms also offer free tiers, making them an accessible option for small businesses looking to provide valuable perks.

10. What perks do employees want most?

In the current economic climate, employees highly value perks that offer savings on essentials, as well as those that support their overall wellness. As a result, discounts for employees consistently rank as one of the most desired perks.