BENEFITS TO THE EMPLOYER
Reduced Retention Cost: Voluntary employee turnover is
expensive and time consuming. PurchasingPower's Computer Purchase Program (ECP2) helps
to increase employee retention, lowering the costs associated
with unwanted turnover. In an expanding economy, voluntary turnover
is a significant cost. In a shrinking economy, key employees become
ever more valuable and outplacement costs are minimized. Employers
can subsidize a portion of the cost of a personal computer in
exchange for a continuing commitment of employment from valuable
Increase Computer Literacy
Reduced Computer Training Cost: As the workplace becomes
more technology-dependent, it is important for almost all workers
to have basic computer literacy skills. Employees who use computers
at home increase their computer literacy skills significantly
over those who do not. These skills are transferable to the workplace
and less time and money are needed for employee training.
Promote Employee Self-Service
Reduced Administrative Cost: Electronic communication
reduces the time, energy and costs associated with traditional
corporate communications. Intranet access increases the number
of programs that can be administered electronically and reduces
administrative and paper supply costs. With a higher percentage
of your employees having computers in their homes they are able
to more conveniently access the Internet during off-work hours
and connect to employee only Intranet sites (enterprise portals).
Bridge the Digital Divide
Bridge the Digital Divide: A significant percentage of
the general population is unable to qualify for traditional credit,
and therefore has no means to affordably purchase a new computer.
Our program knocks down the barrier to ownership by eliminating
the need for credit checks and qualification. Depending on the
income range of your employees, you can increase the percentage
of employees with home computers and Internet access dramatically.
The Credit-Impaired Consumer
Total Households in US = 105 MM
- Households without checking account 13%
- Households without credit card 32%
- Households with income less than 35K 40%
- Households that use non-banking alternatives for purchases 45%
(US Census Bureau, Survey of Consumer Finance,
Stephens Inc., Dealer Business)
BENEFITS TO THE EMPLOYER
Opportunity & Convenience
Payroll Deduction: The convenience of Employee
Computer Purchase Program (ECP2) and
payroll deduction means there are no down payments and no checks
to write. Payroll deduction also helps many employees manage their
budget more effectively. A 2001 MetLife study of employee benefit
trends resulted in 93% of companies polled listing payroll deductions
as the top incentive for employees to take advantage of voluntary
benefits being offered. (Copyright © 2001
No Credit Check and 0% Financing
No Credit Check: Employees have the dual advantage of
purchasing computers through payroll deduction and being extended
credit regardless of personal credit history. Payroll deduction
provides lower and lower-middle income employees a financing vehicle
for which they do not have to qualify. For others that may be
able to qualify for traditional credit, our 12-month, no interest
program is far more attractive than high interest rates, credit
cards, installment loans and rent-to-own plans.
Increased Computer Literacy: Studies indicate that by
the year 2005, 95% of all jobs will require basic keyboard skills.
Reduce the cost of training or subsidies by encouraging computer
Enhance Employee Morale
PurchasingPower provides a program that can appeal to all employees
regardless of income. This program is tangible, easy to understand
and benefits the employee and their families. An additional morale
booster is created when an employer chooses to subsidize the program.
The employee pays less for their purchase and receives a direct
benefit from their employer.
FREQUENTLY ASKED QUESTIONS (FAQ)
What are the direct and indirect costs of the program?
There is no implementation or annual fee associated with Employee
Computer Purchase Program (ECP2).
Indirect costs, while minimal, may be incurred managing the payroll
What percentage of employees participate in ECP2TM?
On average, clients have a participation rate of 8-15%.
What if we already have an Employee Purchase Program (EPP) with
or some other OEM? Will ECP2
be competition to my EPP?
This program will not compete with your current EPP. On the contrary,
ECP2 will compliment your EPP. The OEMs we work with (e.g. Dell, Gateway)
understand our market and recognize our attractiveness to individuals
that they cannot service.
How do employees get service or support for purchases?
PurchasingPower handles all customer care issues including order
management, sales support, and returns.
Can we customize the bundled hardware / software / peripherals
compatibility with our existing architecture?
PurchasingPower can customize the bundles to meet your specific
Is ECP2pricing competitive?
Computer Purchase Program (ECP2) is
a very competitive solution for buying a computer. With 0% interest
and only 12 months of payments, ecp² can save an employee
hundreds of dollars. Buying direct from the manufacturer is often
the best option if the employee has cash. However, the purpose
of ecp² is to loan money to those employees that do not have
cash, do not qualify for traditional credit through a computer
manufacturer or who value the convenience of automatic deductions.
In a recent survey, 93% of the respondents sited 'payroll deduction'
as the biggest reason to participate in a voluntary program.
Is the finance charge front loaded?
There are no interest charges with ECP2.
Is there any penalty for prepayment by an employee?
There is no penalty for prepayment.
Can employees pay off the balance with a check or credit card?
Yes. However, we don't recommend employees use their credit card
to pay off their ECP2
I see Dell and Gateway offering 0% financing from time to time?
What is the interest rate charged with ECP2?
PurchasingPower extends a 0% interest rate to all participating
employees regardless of their personal credit history. Manufacturers
will advertise 0% interest, on a limited basis, in order to stimulate
sales. In most cases, the 0% interest rate is not available due
to a consumer's credit history.
How is ECP2TM
marketed to employees?
With your approval, Employee
Computer Purchase Program (ECP2) develops
a marketing plan. This plan may include e-mail blasts, direct
mail campaigns, worksite posters, payroll stuffer, etc. All efforts
are made to ensure employee participation is maximized.
How are new product offerings provided to employees and what
is required of the company?
PurchasingPower will develop, design and distribute
customized marketing materials to your employees with the goal
of maximizing participation in the program. As the employer, we
ask that you assist in the distribution area (e.g. provide contact
lists, facility addresses, etc.).
What is the procedure for setting up employment verifications?
PurchasingPower will meet all requirements of the employer to
streamline the verification process. Verifications can be completed
via phone, e-mail, file exchange/transfer or automated system
What happens if a participating employee is terminated or separates
from the company? Does the company have any liability?
The employer does not have any liability for an employee's computer
purchase. Per our client agreement, we require that you notify
us as soon as possible when an employee's work status changes.
How do you handle collections for laid off employees?
Advance notice is requested and in the event of employee layoffs
or plant or division closing, you will need to notify PurchasingPower
immediately so that we may stop processing orders from the affected
How do you handle leaves of absence both paid and non-paid?
(FMLA, worker's compensation, maternity, short and long term
disability) Per the approval of the employee and as allowed by
law, any outstanding balance will need to be taken from the employee's
final check. If funds are not available, an alternative payment
schedule will be set up with the employee.
Can the program be set up as pre-tax deductions?
No, it cannot.
If we subsidize, can the subsidy be handled as a pre-tax payroll?
While subsidizing the program is recommended and will increase
employee participation significantly, the subsidy is not yet recognized
How much time will this program take our payroll personnel?
The program requires only a minimal amount of time for your payroll
department and can meet all automation requirements to further
streamline the process.
Is there a specific period for payroll deductions or can it vary
from employee to employee?
The standard Employee
Computer Purchase Program (ECP2) payroll
deduction period is 12 months. We can accommodate for all payroll
frequencies (e.g. weekly, bi-weekly, semi-monthly, monthly, etc.)