Attract and Retain Top Talent: Understanding Workplace Perks

Lily Cua MSB ‘11

Co-Founder, COO of Aspire lily@aspire.is

Agenda

•  Why perks matter

•  The rise of perks in the workplace

•  Popular workplace perks

•  How to effectively implement a perks program

•  Perk pitfalls

•  Perk best practices

Why perks matter

•  How many of you offer some sort of perk at your company? –  Ex: lunches, wellness program, happy hours, speaker

series, etc.

•  Why do you offer those perks?

Poll

•  Happy employees = hefty profits –  In 2014, revenues increased by ~22.2% for the 2014 Fortune 100

Best Companies to Work For

–  Companies that appreciate and focus on employee happiness enjoy a return on equity and assets of more than triple of those that don't

•  Employees feel cared for à increased loyalty and a willingness to go the extra mile

1. Employee Happiness

-Dr. Noelle Nelsen Author “Make More Money by Making Your Employees Happy”

“When employees feel that the company takes their interest to heart, then the employee will take the company interests to heart”

•  Check something off of employees’ “to-do” list – Ex: Dry cleaning, hair cut

•  Offer convenience services that make employees’ lives a little easier – Ex: On-site gym, child care support, catered

lunches

•  Take care of the little things for them so they can focus on their work

2. Productivity Gains

3. Competition

“Culture is important. But make it your own.”

-Tony Hsieh CEO, Zappos

•  Perks are a part of the job evaluation process – Glassdoor introduced a new Benefits section

in August 2014

– See intro video by searching for “Glassdoor Benefits Reviews” on YouTube

•  Employees like to talk about their perks to friends and peers

4. Recruit & Retain Talent

•  Employee Happiness

•  Productivity Gains

•  Competition

•  Recruit & Retain Talent

Summary: Why Perks Matter

The rise of perks in the workplace

•  How many of you have introduced a new kind of perk at your company in the last year?

•  How many of you would have attended this webinar 10 years ago?

Poll

The Rise of Workplace Perks

•  Rise of the “Silicon Valley Work Environment” during dot-com era

•  1997 Fortune and Exame partnered with Great Places to Work Institute to produce the world’s first 100 Best Companies to Work For workplace rankings

•  LinkedIn 2014 Talent Survey shows that “having a reputation as a great place to work” is the #1 factor for employees considering a new job

•  Everyone else is doing it

•  Small incremental cost for noticeable benefit

•  Shift from work-life separation to work-life integration

Why are perks becoming more of a workplace norm?

There are companies that focus on work-life separation or work-life balance and at Zappos we really focus on work-life integration. At the end of the day it’s just life…..and especially if you spend so much time at work you better enjoy the time that you’re spending there and people that you’re with….”

-Tony Hsieh CEO, Zappos

“

Q: How much are companies spending on perks? –  Most companies are NOT tracking this –  At Aspire, we have clients allocate $50 - $200 / person per month

Q: Are perks industry specific? –  Tech, startups: competing with Silicon Valley –  Professional services (consulting, accounting, PR): differentiating

themselves from their competition –  Many industries still driven by salaries (Financial Services, Law)

Q: What about healthcare and other “traditional” benefits? –  Private industry employers spent an average of $31.32 per hour

worked for total employee compensation –  Wages and salaries averaged $21.72 per hour worked (69.4%) –  Benefits averaged $9.60 (30.6%)

Trends in the Workplace

Popular workplace perks

•  If you could have your company sponsor one perk for you, what would it be?

Poll

Most Popular Perks of 2014

1.  Game Rooms

2.  Good Eats

3.  Physical Health

4.  Mental Health

5.  Time Off

6.  Freebies

Game Rooms

“

-Jay Graves CTO Possible Mobile

I like these types of things because they bring people together who might not normally interact on a day-to-day basis. Spending time together, both while working and ‘off the clock,’ are key to creating a company’s culture – especially one that depends largely on collaborative efforts.

Why Game Rooms?

•  Brings staff together •  Builds fun into the

workplace •  Raises creativity levels •  Allows employees to

take a step away from their desk and recharge

Good Eats

Crazy Food Perks

•  Unlimited Cereal Bar

(Moz.com) •  Barista Coffee Tasting

(Opower)

•  All Meals Every Day

(Facebook)

•  On-Site Pub (DropBox)

Common Food Perks

•  Coffee

•  Catered Lunches

•  Team Breakfasts

•  Lunch & Learns

•  Fruit & Snacks Pantry •  Beer & Wine

Physical Health

83% Companies offer

wellness program incentives to

their employees

$3.27 Medical cost

savings for every dollar spent on

wellness programs

“Aside from savings on health care costs, wellness programs were likely to result in lower replacement costs for absent workers and

were an advantage in attracting workers to the firm.”

$2.73 Drop in absentee

day costs for every dollar

spent on wellness program

-Stephen Miller SHRM Wellness Study

Physical health by the numbers….

Require employees to actively participate in health programs, comply with medications, or participate in activities like health coaching

Offer incentives for progress against biometric goals e.g. blood pressure, BMI, blood sugar and cholesterol (>2/3 say they plan to do this in the next 3-5 years)

Plan to impose consequences on participants who do not take appropriate actions for improving their health

34% are interested in tying incentives to program designs that require a focus on health 365 days a year

56%

24%

58%

34%

2013 Wellness Program Research Study

Free! $$$

Organized Running Clubs

Social Sports Leagues

Indiv. Gym Memberships

On-Site Fitness Classes

Fitbit Challenges

Wellness Newsletter

Subscriptions Office Gym

Treadmill Desks

Common Corporate Health & Wellness Program Offerings

Mental Health

•  Meditation room

•  Relaxation room

•  Nap pods

•  Office yoga sessions

Why Employees Need a Mental Break

1.  Breaks keep us from getting

bored (and thus, unfocused) 2.  Breaks help us retain

information and make connections

3.  Breaks help us reevaluate our goals

Time Off

•  PTO Days

•  Sick Days

•  Maternity and Paternity Leave

•  Paid Sabbaticals

•  Community Service Days

Set # Days Unlimited Vacation

Required Vacation

The Evolution of “Vacations” in the Workplace

2013 Vacation Deprivation Survey Findings: •  41% of American workers let paid

vacation days go to waste •  Collectively, Americans failed to

take ~577,212,000 available vacation days

•  67% of vacationing Americans remain tethered to the office

•  1/3 of senior managers never or only once a year communicate the merits of taking paid vacation

Freebies

•  Netflix subscriptions •  Bike memberships •  Magazine subscriptions •  Tickets to sporting games and movies •  Free make-up or spa services •  Babysitting / child care on site •  Pet sitting •  Technology products (iPads, cell phones, etc.)

Most Popular Perks of 2014

1.  Wine Delivery

2.  Ride Sharing (Uber, Lyft)

3.  Meal Delivery Services

4.  Healthy Snacks

5.  Produce & Grocery

Delivery

6.  Gym Memberships

7.  On-Demand Dry

Cleaning & Laundry

8.  Coffee Delivery

9.  Massages

10.  Sporting Tickets

How to effectively implement a perks program

•  Get buy-in from leadership •  Look at company’s People Strategy and identify

how perks can contribute –  Are you trying to grow and recruit new talent? –  Are you trying to be recognized as a great place to

work? –  Are you looking for new ways to innovate at your

company? –  Are you trying to keep up with your competition?

•  Set expectations up front –  Perks are NOT a silver bullet solution –  ROI will be hard, if not impossible, to measure

Implementing a Perks Program

•  Determine how you will monitor impact to evaluate effectiveness

•  Introduce new program through multiple marketing and communications channels (in-person kickoff, email, flyers)

•  Track company usage trends –  Are people actually using the perks?

–  Are some perks not being used at all?

–  Are only some employees using the perks?

•  Re-assess usage and effectiveness regularly

Implementing a Perks Program

Perk Pitfalls

•  Lack of re-marketing & communication –  Employees don’t know what’s available to them

•  Outdated and complicated benefits systems –  Employees don’t think it’s worth the effort

•  Set it and forget it

•  Offering perks that people don’t want

•  Perks are an afterthought, not a strategic investment in people and culture

•  Perks should be a reflection of your culture, not define it

Why Perks Fail

Perk Best Practices

•  Get leadership buy in and messaging

•  Collect employee input and suggestions

•  Track your spending

•  Offer something for everyone

•  Assess impact, quality, and usage at least twice a year

•  Avoid showing dollars when possible

How to get the best bang for your buck

•  Perks aren’t going away

•  When done correctly, perks can make your employees happy, increase productivity, differentiate you from your competition, and help recruit and retain the best talent

•  Every company’s culture is different, and your perks should reflect that

•  Your employees have different needs, so you should tailor your offerings accordingly

•  Be intentional when implementing a perks program at your company

•  Treat your perks as you would any other investment in your business and your people

Key Takeaways

Attract and Retain Top Talent: Understanding Workplace Perks

Lily Cua MSB ‘11

Co-Founder, COO of Aspire lily@aspire.is