Combating inflation with reward and discount programs

In an effort to reduce inflation, the Federal Reserve has repeatedly delivered massive rate hikes, with its most recent jumping to 3.25% in September. It was the third consecutive rate hike of 0.75% – the highest raise in nearly 30 years – and the fifth rate hike this year. According to Fed Chair Jerome H. Powell, the central bank expects to raise rates to 4.6% in 2023.

Raising the federal funds rate directly impacts how banks set the interest rates on credit cards, loans and savings accounts. With even more increases on tap, Americans’ economic struggles will only exacerbate – more than half (56%) say price increases are causing financial hardship for their household, up from 49% in January, according to a Gallup poll in September.

Now is the time for employers to step up and alleviate their employees’ pain. One way to help workers save money on daily expenses is through an employee discounts program, according to Molly Pemberton, Group Director of Retail at Reward Gateway.

“Embedding a discount platform into your benefits solution allows employees to stretch their dollars further,” Pemberton told HRD. “They can use it to save on a range of their day-to-day purchases from fashion and electronics, to travel and entertainment. It takes the edge off some of those purchases and frees up some of those crucial dollars.”

Founded in 2006, Reward Gateway provides an employee engagement platform that brings employee benefits, discounts, recognition and reward, wellbeing, communications and surveys into one unified hub.
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