How Effective Are Your Workplace Perks at retaining staff?

Pre-COVID-19 and workplace perks were different. In essence, perks were a benefit or bonus of employment, directly connected to the business or industry and intrinsically linked to employee motivations. Work in a hair salon and receive haircuts, and if you have a passion for foreign countries and cultures, a job in the travel industry sees you benefiting from discounted holidays.

Along came the skills crisis, and perks became so much more. Employers pulled out all stops. No longer directly related to what the organisation does, perks became everything and anything; healthcare, gym, food, remote working, you name it, it was on offer. Often the deciding factor, perks were the gift with purchase where the gift was more important than the purchase.

It wasn’t enough. Like a glittering prize, the attraction was there, but what was on offer missed the mark, providing no enduring strength to hold people. An unstoppable tidal wave of workplace displacement and confusion followed and, with it, further business disruption. In 2022, right in the midst of our perks profusion, employee engagement figures were overwhelmingly pessimistic, 60% of employees worldwide were not engaged and 19% actively ‘disengaged’.  Resignations followed with quit rates at heights not seen before in the 21st century.

Perks cannot be extra add-ons, provided without measurement and strategy. There must be a return on investment. So, how effective are our perks?

Today’s perks. 

They have evolved. Thankfully, although at a high learning cost, today’s perks are moving from the superficial free lunches, yoga mats, and bringing your dog to work, to what really matters. In some ways, they are reverting to their initial role; providing deeper fulfilment, connection and purpose.

Competing on how many biscuits, days off and add-ons is low rent. On this level, you will always be out-perked. Instead, shift it up a gear, know and understand your people and have all benefits related strongly to your business goals, values, and purpose.

Bees to honey attraction. 

Of the right perks, that is. To be in with a chance, your perks must hit the mark and not be confused as a nice to have. As an essential part of the employee value proposition, they make your organisation competitive in attracting good-quality employees. As the competition for talent remains relentless, so too must your benefits offerings.

Branding.

While employee perks and benefits are part of the pull-in attracting future employees, what is of equal importance is the unconscious message, i.e., how much you value and care for your employees.

Perks that don’t fly are not lost on the collective. Don’t underestimate how easy the read is! This unspoken and indirect communication can resonate deeply for attracting and retaining talent.

Retention.

Of even higher priority than attracting talent is keeping it. Don’t put your existing staff in a position to accept head-hunting calls and offers or be poachable because your own organisational benefits offering is lacklustre.  Even a single conversation with a recruiter can be enough to sow the seeds of discontent, causing employees to question their current situation and explore greener pastures.

Worse is the ripple effect of just one resignation. Disrupting your team’s dynamics and productivity places your business at risk of losing even more team members. Perks that are of true value and benefit will provide your business with long-term stickability.

The cost. 

There is no denying it; they can be costly. But only if there is no return on investment (ROI). Ad hoc, whimsical perks add up, and if they are throwaways with no strategy, goal, effective implementation, and measurement, then it is not only costly, but when not aligned to a strategy can seem desperate. For a value to be returned, the perks and benefits must be connected to what is also vital to your organisation.

Hidden costs. 

Hiring also costs. So does rehiring. Add on training, the loss of intellectual property, stress on existing employees, additional resources, customer dissatisfaction, etc., and the list goes on. These hidden costs far exceed the direct costs associated with the right perks.

Workplace perks play a significant role in attracting and retaining talent, enhancing productivity, and prioritising employee well-being. However, their effectiveness largely depends on how well they cater to employees’ needs and preferences. Feeding the shadow side of perks is a superficial band-aid with short-lived gratification. Instead, match and leverage perks for mutual benefit, sustainable purpose, and excellence in business performance.

Written by Roxanne Calder.

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