Introduction:
Top talent no longer just chases top dollar. High salaries and robust benefits matter, but it’s workplace perks that are driving the bus now. They’ve become key to both attracting and keeping the best people. Today, we’re going to deep-dive into a topic that I am passionate about: ‘perks at work’. A study featured in the American Economic Review reveals that job preferences aren’t always about money. The study, named “The Value of Working Conditions in the United States and Implications for the Structure of Wages,” suggests that some people might choose a lower-paying job for better working conditions. These can include benefits such as flexible working hours, paid leave, or a job that requires less physical effort. The findings of this study come from survey data collected by the research group, Rand Corporation. The main focus was understanding how much importance workers give to their working conditions. Kathleen Mullen, the lead author of the paper and an Economics professor at the College of Arts and Sciences, makes it clear. She says people are ready to give up about half of their wages for better working conditions when comparing the worst and best job situations. We will delve deep into understanding what these perks mean, the difference between perks and benefits, the comparison between ‘perks at work’ and ‘tickets at work’, why these perks are vital, some examples of these perks, their main purpose, and what kinds of perks attract employees the most.
Meaning of Perks at Work:
Let’s understand what we mean by “perks at work.” Loosely defined, these are the extra benefits that organizations provide their employees, over and above their standard compensation.They are strategic tools that employees cherish and employers smartly use to inspire, motivate, and retain their top talent. The Friday happy hours, gym memberships, and free snack bars at Google are classics in this category—all aimed at fostering a vibrant and conducive work environment! These are not merely materialistic or monetary benefits, they also involve aspects that improve an employee’s work-life balance, elements that demonstrate the organization’s care for the employee and their family’s well-being, factors that help them grow professionally, and practices that underline the genuine autonomy extended to employees. Talking about Google again, their extended paternity and maternity leaves, or their professional growth opportunities are excellent examples of these perks.
Difference between Perks and Benefits:
Perks and benefits represent forms of non-salary compensation offered to employees. While some might view “perks” and “benefits” as synonymous, they bear key differences. Essentially, benefits are non-monetary essentials, whereas perks are non-monetary extras. Benefits, some of which are obligatory by law, encompass health insurance and optional benefits like paid vacation time. On the other hand, perks are supplementary means through which employers cater to their employees’ needs beyond their salary and benefits. These perks might include prolonged paid parental leave, discounts for employees, or complimentary gym memberships. A Glassdoor survey shows that 60% of respondents consider such benefits and perks crucial when deciding on a job offer.
Why are perks at work important?
People looking for new jobs are increasingly valuing wellness benefits. They understand that a good work-life balance is important for health, and companies with wellness perks generally have better work environments. Employees with wellness perks can have better mental health, reducing their stress levels. These workers also miss work less often and are less likely to quit. Wellness benefits could include free food, pet-friendly offices, and flexible schedules, which make the workplace more enjoyable. This could reduce the chances of employees looking for other jobs. If employees feel valued and appreciated, they are usually more motivated and productive. Wellness programs can foster happier, more productive employees who not only contribute to a company’s success but also create a less stressed, more positive work environment by preventing the feeling of being overworked.
Perks at work vs. tickets at work :
While we’re at it, let’s talk about “workplace perks” versus “tickets at work.” These are two different programs. The latter focuses mainly on giving discounted tickets for fun and travel . But which one brings more value? Well, it’s not a one-size-fits-all answer. It depends on what an employee values more: discounts for leisure or perks that promote a better work-life balance and professional growth. Employee discount programs grant staff exclusive price reductions when shopping for products or services, traveling, or dining, and can vary from grocery shopping to cinema tickets. These exclusive reductions are accessible only to employees.
What are some Perks at work?
Start with these top five perks for a successful employee benefits program:
1. Flexible Work Arrangements: Many employees appreciate flexible work hours and locations. This perk gives them more control over their time and boosts productivity.
2. Paid Parental Leave: This benefit allows employees to spend time with their new babies without losing their career momentum, reducing stress and increasing retention.
3. Wellness Programs or Gym Memberships: Millennials value health and wellness. Offering discounted gym memberships or wellness programs can support employees’ health and energy levels.
4. Learning and Development Opportunities: Career growth makes employees feel valued. As they expand their own skills, this benefit also improves productivity and competitiveness.
5. Time Off for Volunteering: Companies like Fidelity Investments are offering days off for volunteering to give back to the community. This perk strengthens team bonds and shows the company’s commitment to social responsibility.
By offering these perks, companies can attract great talent and also create a positive and productive workplace.
What perks attract employees:
Forbes Coaches Council members suggest that in order to retain top talent in today’s remote working environment, employers should provide the following benefits and perks:
- Encourage a Coaching Culture
- Fostering a Sense of Belonging
- Offer Robust Work-Life Benefits
- Provide Extended Remote Work Opportunities
- Enable Professional Development Opportunities
- Advocate Genuine Autonomy coupled with Unlimited Time Off
- Support Employees’ Family Wellness
- Promote Flexible Working Hours
- Include Child Care Provisions
- Offer Perks that Express Appreciation to Employees
- Maintain Transparent Communication and Align Employees with the Organization’s Purpose
- Conduct Employee Training Sessions
- Show Human Compassion
- Respect Employees’ Individuality
- Take Care of the Mental and Physical Well-Being of Employees
What is the purpose of perks :
The main purpose of perks is to show a company’s dedication to the wellness of its employees, both at work and outside. Successful companies have shown this to be a beneficial practice. Perks are an effective way to show gratitude to dedicated employees and positively influence the quality of their work. Employers should consider creating a comfortable workplace to boost productivity. To sum it up, perks are not simply extras, they play a vital role in the happiness of employees and contribute significantly to the success of a company.
Final thoughts:
There’s no better time than now to invest in your employees. The key to keeping them long-term lies in cultivating a strong workplace culture where they can genuinely express themselves and do meaningful work. To draw in and keep top-notch professionals, it’s crucial to nurture your company’s culture—its purpose, principles, work-life balance, and the magic of perks at work.