[SpaceCadetJones]

I'm a bit confused, where does the effectively paying less come from? I suggested they increase their pay while also giving them a discount at the store to give them an incentive to spend their new income at the store.

[tanker]

I communicated poorly. Paying your employees more and giving them a discount is harmless. Lots of employees receive a discount.

I meant you run into problems when you end up effectively paying them less and justifying via a larger discount.

Management could end up doing this gradually as times get tough. For example, a company announces lay offs and pay cuts, but softens the blow with a larger discount.

I guess I'm recommending caution. I would avoid making a discount a major part of employee compensation. A worker deciding to apply for jobs at Walmart and Costco could end up weighing a better health plan against a higher discount on basic goods. That seems problematic to me.

[SpaceCadetJones]

Thanks for clarifying, this makes a lot of sense.