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12 Jan 2023

Uniform allocation vs allowance: how businesses can save up to 30%

For many companies, buying uniforms for their employees is an essential part of running the business. And while most people assume that purchasing workwear for staff is fail-proof, that couldn’t be further from the truth.

Time and time again, a costly mistake some organisations make when it comes to uniforms – whether they’re from healthcare, corporate or hospitality – is that they give their staff a uniform allowance instead of providing them with the actual garments.

We understand why a lot of companies do this – they think giving their staff an allowance equivalent to what the business would have spent on a uniform will save them time and hassle. But in the end, giving your employees a uniform allowance instead of an actual garment will cost you a significant amount of money.

When employees are given a uniform allowance, what typically happens is that the employee spends the least amount possible. This means employees are left with a low-cost, low-quality garment that does not have the durability necessary to withstand the wear-and-tear of the job. Six months down the line, their self-purchased uniform looks faded, shabby, and unprofessional, which is a major hit to brand image and professionalism.

So what’s the alternative? It’s a simple switch – allocating uniforms.

In our endeavour to consistently create and manage only the best uniform programs for all our clients, the Uniformity team created a financial modelling template to really test and pinpoint the exact tangible benefit businesses experience when offering physical uniform allocation instead of dollar allocation to their employees.

We found that allocating uniforms saves businesses up to 30% compared to offering a uniform allowance.

That means if you’re an organisation with a $300K uniform spend, providing physical uniforms to your employees will save you a staggering $100K per year compared to simply issuing uniform allowances.

So the choice is clear – purchasing uniforms as a business and providing these garments to your employees is, and always will be, the most cost-effective solution.

But that’s only one aspect in developing and delivering a successful uniform program and strategy. Get in touch with Uniformity today to help define how your business can create and manage better branded wear for business.

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