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Happy Staff!


Staff discount can have a number of benefits for retailers;

  • Motivated staff
  • Staff wear/use products in the shop locality
  • Staff use and understand the products better

However staff discount is also open to abuse. If the discount is so large it may allow staff to treat your business as a wholesaler and buy from your and sell on to friends, on ebay or at car boot sales and therefore deny you sales at full price. Afterall you don't want to compete for sales with your staff!

If the discount is solely for your staff then you need to ensure that this is checked.

Some Anti-Fraud steps to consider:

  • Define limits and terms and ensure staff are aware of them
  • Ensure you have systems/reports/processes to monitor use
  • Tell staff the value of the benefit, so they also know that its monitored and therefore prevent abuse
  • Consider a second check on staff transactions, for example any member of staff can sell to any member of staff, but they are required to get a manager signature on the receipt and present to security guard before removing any goods from the shop.

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