March 18, 2009
Employers Provide Added Perks to Keep Workers Happy
While many employers are
looking to cut labor-related costs wherever possible, some others are taking
a longer range view and actually adding perks despite the current challenges
of running a business, reports The Wall Street Journal.
Among
the added perks are adoption benefits, backup childcare,
child-care centers, concierge services, expanded health care services,
and academic scholarships for children of company employees.
"Your
knee-jerk reaction is, ‘Why in the world would you add something like this
now?’" Carol Sladek, a principal at
consulting firm Hewitt Associates, told the Journal.
The
answer, according to Ms. Sladek, is that many companies have added perks
to help reduce the stress on employees who may be working in leaner organizations.
The Harvard
Business Review cited a study showing voluntary quit rates at companies
increase an average of 31 percent following a layoff.
Jeff
Henderson, chief financial officer at Cardinal Health, told the Journal,
"Anything companies can do to reduce that stress level for employees
is something you have to look at."
Discussion Questions: What added perks do
you think are most helpful at this point in time? Will these benefits
increase productivity, reduce turnover and foster any other benefits
for employers that offer them? Are there any unique programs in retailing
or consumer goods manufacturing companies that you believe are worthy
of emulation?
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I have seem some interesting perks handed out while working in the field. If health and safety is an issue, I have seen catered lunches for 30 consecutive accident-free days. During Christmas, I find feeding my team gets the biggest bang for the buck. I see that front-line associates really enjoy getting gift cards from the retailer. If you sell solid state printed circuit boards for missile control systems, you could always get gift cards to the local grocery store.
I like these perks. I have seen managers enjoy and savor the task of handing perks out. There is so much negativity going on around us, we are all looking for a little positive interaction.
The ‘big guys’ have more options available (child care assistance, health care benefits) than the smaller players out there. But, the tool they all have in common and available to them is time. Time spent talking with, coaching and training your employees. Engagement levels always increase when you spend more time with your employees. They begin to feel important, listened to, and part of the team. Turnover rates always go down.
The cost of this perk: next to nothing.
Putting aside all of the specific “perks” that make sense to many of your readers, the overriding “perk” that is messaged to associates by this kind of behavior is that a company cares about them, is listening to them, is thinking about them, is demonstrating concern and empathy for them and responding to their “soft needs.” We all know that wonderful internal service leads to external service excellence and in this economic turn around that we all face, the focus on external customer service will return front and center, perhaps as never before.
The two best perks (in good times and bad) are #1) Strategy and #2) Communication. Not playpens and gift cards.
#1) Strategy: Company executives owe their employees and shareholders the vision, fortitude and willingness to be strategic and focused in identifying and executing on the business model and value proposition that best positions the company for continued long-term success. Too many companies hold onto the cheese for too long hoping things will get better or magically turn into the “good old days.” You are on the path to layoffs and bankruptcy, especially now.
#2) Communicate down to every last employee what exactly that strategy is and what exactly their individual contribution is to the successful execution of that strategy, and then measure it with them.
That’s what you owe employees.
Deliver on those two key perks and job satisfaction, job security and financial reward will be the by-product of your success.
Providing perks that help reduce stress is admirable and strategic if part of a holistic effort to create an inspiring work environment. Unfortunately, many firms have added perks over the years either because they were flavor-of-the-day ideas or to mask a lack of a meaningful, inspiring company purpose.
Before a company looks to add more perks, start by assessing whether the employees feel connected to the company vision and purpose. Is there a vision and purpose? How is it articulated, demonstrated, made a part of everyday decisions? The key here is for employees to feel they are part of something meaningful, a deeper purpose than the specifics of their job function. If you can make this real, you’ll find that you need fewer perks to reduce stress or inspire engagement and loyalty.
If, however, your company’s employees are emotionally connected to your vision and purpose, it will be a natural extension of your culture to work with your employees to understand what perks are appropriate. In that case, the addition of one or more meaningful perks will enhance your company’s reputation as an ’employer of choice’ and ensure the best talent is seeking to join your team–in good times and bad.
I am most impressed with companies that focus on extraordinary learning and development. This is the best ‘perk’ of all. The Container Store comes to mind as a leader in this regard. As has been well documented, every first-year, full-time salesperson undertakes some 235 hours of training as opposed to the retail industry’s typical seven or eight.
Start with a great vision, provide extraordinary learning opportunities, and remain consistent with both. Then, discussions about perks are appropriate and meaningful.
For a well-run company, the recognized benefits of a happier employee, let alone a better work environment, pay off the expenses of the “perks” several times over. This value exists regardless of the state of the economy, and matter even more when companies are looking to generate even more productivity or add more value and growth from their existing operations. The key is not what it costs, but more what is would cost without the benefit.
Involvement is the best incentive and perk. People thrive off of workplace participation rather than having new programs, policies, and work that they do not understand the reason for thrown at them. If you want to turn off a smart associate, give them something they didn’t ask for, don’t need, and don’t understand. The best people don’t want gimme’s, bailouts, or the opportunity to do more work to pay for the things they don’t perceive they need or want.
It all depends on your company’s position. For those in relatively good cash and debt positions, and with some income visibility into the future, now is the time to upgrade your staff for the long term. Perks may be a part of the equation, but just as a means to the end of upgrading overall employee quality.
Companies are smart to be looking at retaining staff. There’s no need to provide million-dollar bonuses, as at AIG. Instead, healthcare, childcare, and the occasional pizza go a long way to make employees feel valued.
Lean payroll environments are stressful; period. Excellent selection and training in the lean payroll environment is mandatory for survival. To attract smart, highly motivated people who can thrive in a lean payroll environment you need a few arrows in your quiver, so to speak. Smart, highly motivated people require a good compensation and benefit package to keep them in any environment.
Once the salary, health insurance, 401K, vacation bases are covered, the next item would be comp time. Lean payroll environments often require employees to work far more than the traditional forty-hour week. When they give you more than you paid for, you’ve got to give back. If comp time is out, you better come up with something else that’s tangible or someone else will.
Increasing benefits definitely sends the signal that the company intends to be around for a long time. It can also improve productivity at a time when many workers are distracted by the headlines. Finally, for companies in industries that are vulnerable to bad times, it may be a critical move to retain key employees who otherwise might jump ship to a more secure employer.
From the list you posted, I think employers have it right. Child care is the obvious one that affects most people. The amount of time lost to child care, not to mention the productivity-draining stress and expense involved, makes it a natural.
A nice perk is personal financial education/advice. Companies can negotiate great services from external financial advisory firms to provide to their employees. In these times as 401(k)s continue to struggle, this is a low-cost, much appreciated employee benefit. There can be online resources made available, along with educational Webinars. Also, there can be a one-time complementary face-to-face meeting with a financial counselor, either an internal person, or from an external firm.
In this environment, the best perk is security. Knowing that you can count on having steady income and health insurance is today’s golden parachute. Child-care comes second. After that, everything’s gravy.
Working with your employees side by side shows them that you are part of a team. I cut meat, and help out in the deli-bakery, having fun creating new recipes. It doesn’t hurt to provide free food for everybody, especially on a busy day. The employees appreciate it.
Anything that puts money into the pockets of employees, rewarding their hard work, then I’m all for it. Finding clever ways to avoid taxation such as Flex plans, 401ks, company car allowances, pre-tax health care benefits, etc, helps employees save and avoid taxes. One the best things an employer can do is let the employees own the company and let them share in the successes and failures.
Best perk for any employee right now is family healthcare.
I think the #1 added perk should be honesty. Might sound silly, but when was the last time corporate management really honest with its employees? Have open communication with the employees. Have the CEO write an internal blog twice a week, letting the employees know what is happening with the company. Have the senior management staff film short 2 minute videos letting the rank and file know what each member of the management team does, and how much money they make. The more transparent the company is with its employees, and the more that management listens to its employees, the better the working environment will be. Who would not want that perk?
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I have seem some interesting perks handed out while working in the field. If health and safety is an issue, I have seen catered lunches for 30 consecutive accident-free days. During Christmas, I find feeding my team gets the biggest bang for the buck. I see that front-line associates really enjoy getting gift cards from the retailer. If you sell solid state printed circuit boards for missile control systems, you could always get gift cards to the local grocery store.
I like these perks. I have seen managers enjoy and savor the task of handing perks out. There is so much negativity going on around us, we are all looking for a little positive interaction.
The ‘big guys’ have more options available (child care assistance, health care benefits) than the smaller players out there. But, the tool they all have in common and available to them is time. Time spent talking with, coaching and training your employees. Engagement levels always increase when you spend more time with your employees. They begin to feel important, listened to, and part of the team. Turnover rates always go down.
The cost of this perk: next to nothing.
Putting aside all of the specific “perks” that make sense to many of your readers, the overriding “perk” that is messaged to associates by this kind of behavior is that a company cares about them, is listening to them, is thinking about them, is demonstrating concern and empathy for them and responding to their “soft needs.” We all know that wonderful internal service leads to external service excellence and in this economic turn around that we all face, the focus on external customer service will return front and center, perhaps as never before.
The two best perks (in good times and bad) are #1) Strategy and #2) Communication. Not playpens and gift cards.
#1) Strategy: Company executives owe their employees and shareholders the vision, fortitude and willingness to be strategic and focused in identifying and executing on the business model and value proposition that best positions the company for continued long-term success. Too many companies hold onto the cheese for too long hoping things will get better or magically turn into the “good old days.” You are on the path to layoffs and bankruptcy, especially now.
#2) Communicate down to every last employee what exactly that strategy is and what exactly their individual contribution is to the successful execution of that strategy, and then measure it with them.
That’s what you owe employees.
Deliver on those two key perks and job satisfaction, job security and financial reward will be the by-product of your success.
Providing perks that help reduce stress is admirable and strategic if part of a holistic effort to create an inspiring work environment. Unfortunately, many firms have added perks over the years either because they were flavor-of-the-day ideas or to mask a lack of a meaningful, inspiring company purpose.
Before a company looks to add more perks, start by assessing whether the employees feel connected to the company vision and purpose. Is there a vision and purpose? How is it articulated, demonstrated, made a part of everyday decisions? The key here is for employees to feel they are part of something meaningful, a deeper purpose than the specifics of their job function. If you can make this real, you’ll find that you need fewer perks to reduce stress or inspire engagement and loyalty.
If, however, your company’s employees are emotionally connected to your vision and purpose, it will be a natural extension of your culture to work with your employees to understand what perks are appropriate. In that case, the addition of one or more meaningful perks will enhance your company’s reputation as an ’employer of choice’ and ensure the best talent is seeking to join your team–in good times and bad.
I am most impressed with companies that focus on extraordinary learning and development. This is the best ‘perk’ of all. The Container Store comes to mind as a leader in this regard. As has been well documented, every first-year, full-time salesperson undertakes some 235 hours of training as opposed to the retail industry’s typical seven or eight.
Start with a great vision, provide extraordinary learning opportunities, and remain consistent with both. Then, discussions about perks are appropriate and meaningful.
For a well-run company, the recognized benefits of a happier employee, let alone a better work environment, pay off the expenses of the “perks” several times over. This value exists regardless of the state of the economy, and matter even more when companies are looking to generate even more productivity or add more value and growth from their existing operations. The key is not what it costs, but more what is would cost without the benefit.
Involvement is the best incentive and perk. People thrive off of workplace participation rather than having new programs, policies, and work that they do not understand the reason for thrown at them. If you want to turn off a smart associate, give them something they didn’t ask for, don’t need, and don’t understand. The best people don’t want gimme’s, bailouts, or the opportunity to do more work to pay for the things they don’t perceive they need or want.
It all depends on your company’s position. For those in relatively good cash and debt positions, and with some income visibility into the future, now is the time to upgrade your staff for the long term. Perks may be a part of the equation, but just as a means to the end of upgrading overall employee quality.
Companies are smart to be looking at retaining staff. There’s no need to provide million-dollar bonuses, as at AIG. Instead, healthcare, childcare, and the occasional pizza go a long way to make employees feel valued.
Lean payroll environments are stressful; period. Excellent selection and training in the lean payroll environment is mandatory for survival. To attract smart, highly motivated people who can thrive in a lean payroll environment you need a few arrows in your quiver, so to speak. Smart, highly motivated people require a good compensation and benefit package to keep them in any environment.
Once the salary, health insurance, 401K, vacation bases are covered, the next item would be comp time. Lean payroll environments often require employees to work far more than the traditional forty-hour week. When they give you more than you paid for, you’ve got to give back. If comp time is out, you better come up with something else that’s tangible or someone else will.
Increasing benefits definitely sends the signal that the company intends to be around for a long time. It can also improve productivity at a time when many workers are distracted by the headlines. Finally, for companies in industries that are vulnerable to bad times, it may be a critical move to retain key employees who otherwise might jump ship to a more secure employer.
From the list you posted, I think employers have it right. Child care is the obvious one that affects most people. The amount of time lost to child care, not to mention the productivity-draining stress and expense involved, makes it a natural.
A nice perk is personal financial education/advice. Companies can negotiate great services from external financial advisory firms to provide to their employees. In these times as 401(k)s continue to struggle, this is a low-cost, much appreciated employee benefit. There can be online resources made available, along with educational Webinars. Also, there can be a one-time complementary face-to-face meeting with a financial counselor, either an internal person, or from an external firm.
In this environment, the best perk is security. Knowing that you can count on having steady income and health insurance is today’s golden parachute. Child-care comes second. After that, everything’s gravy.
Working with your employees side by side shows them that you are part of a team. I cut meat, and help out in the deli-bakery, having fun creating new recipes. It doesn’t hurt to provide free food for everybody, especially on a busy day. The employees appreciate it.
Anything that puts money into the pockets of employees, rewarding their hard work, then I’m all for it. Finding clever ways to avoid taxation such as Flex plans, 401ks, company car allowances, pre-tax health care benefits, etc, helps employees save and avoid taxes. One the best things an employer can do is let the employees own the company and let them share in the successes and failures.
Best perk for any employee right now is family healthcare.
I think the #1 added perk should be honesty. Might sound silly, but when was the last time corporate management really honest with its employees? Have open communication with the employees. Have the CEO write an internal blog twice a week, letting the employees know what is happening with the company. Have the senior management staff film short 2 minute videos letting the rank and file know what each member of the management team does, and how much money they make. The more transparent the company is with its employees, and the more that management listens to its employees, the better the working environment will be. Who would not want that perk?