Companies leverage increasingly creative mixes of benefits and perks, competing to attract and retain top talent. More important than what is provided is the substance of those perks.
Crafted mindfully, benefits and perks communicate the value and respect that an organization places in its people, and its philosophy in helping employees do their best work. Ultimately, it’s about creating a more human workplace.
What are some of the benefits that have typically figured into the mix?
Some are the essentials that most of us have come to expect from our employers – health and vision, vacation or paid time off, and increasingly, more generous parental leave packages.
Other perks are unconventional, like those borrowed from leading technology or start-up companies. Free food and beverages (of all sorts), games and social spaces, pets, and flex work arrangements. Some even blend the trendy with the traditional – unlimited vacation policies, anyone?
Without a doubt, these perks can contribute to the greater appeal of one company over another, especially for job seekers. An open question is the durability of that appeal, not only over the course of a job search, but throughout the employee’s tenure.
Even the most exciting perks can quickly lose their sheen if they do not help cultivate or sustain a compelling employee experience. They may quickly fade into the background if they do little to address the roles and connections making up most of the time we spend at work.
What is the solution?
The first thing an organization should do is to think about the employee experience they wish to create, determining which areas hold the most value in terms of creating a human workplace.
For example, some may emphasize the importance of ongoing feedback, recognition, and growth opportunities. Companies may also wish to communicate the importance they place in giving employees voice and autonomy, creating meaningful work, or building organizational trust.
With these principles in mind, a set of benefits and perks can be crafted to support them. For example, open office plans become valuable because they allow for continuous conversations and facilitate sharing of recognition and praise. Flex work arrangements aren’t just a nice-to-have, but support employee empowerment and autonomy over how work gets done. Dedicated service days are more than a chance to get out of the office and do good – they show how every employee’s work is meaningful to the broader community.
The critical difference in this two-step approach is avoiding the pitfalls associated with simply copying perks and benefits that other companies provide. It avoids the arms race toward more generous perks that might have limited benefits. Most importantly, it creates a culture where employees are energized and the benefits have a durable impact.
What is your own company’s philosophy around benefits and perks?
As Globoforce’s Vice President of Client Strategy and Consulting, Derek Irvine is an internationally minded management professional with over 20 years of experience helping global companies set a higher ambition for global strategic employee recognition, leading workshops, strategy meetings and industry sessions around the world. He is the co-author of "The Power of Thanks" and his articles on fostering and managing a culture of appreciation through strategic recognition have been published in Businessweek, Workspan and HR Management. Derek splits his time between Dublin and Boston. Follow Derek on Twitter at @DerekIrvine.
Great posting Derek!
Its nice to see your arguments for taking a deeper look at benefits and perks.
I have always been frustrated in my four decades in the compensation business that certain HR people could spend a whole career administering benefits and perks, yet still not have any idea how much those benefits and perks cost, nor what recruitment and retention benefit is achieved by having them.
Thanks for raising the issue.
Posted by: Paul Weatherhead | 03/30/2017 at 07:13 AM