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The Entrepreneurial Agenda by Robb Mandelbaum
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May 21, 2008
Earning Employee Love
Posted by Michael Alter at 4:20 PM
What's your approach to attracting top talent and keeping your employees? Sure, you could just pay them a bundle and buy their loyalty. But, sometimes, it's better to think outside the box and focus on other ways to compensate your employees that don't involve simply offering a higher salary and bumping up your payroll bill.
In my last article, I discussed the idea that compensation is more than just cash.
I mentioned one perk we offer at SurePayroll -- company-paid trips abroad for long-serving employees -- and promised to follow up with a laundry list of non-cash compensation ideas that you might consider using at your business.
So, without further adieu, here are 20 perks that just might make your employees love working for you.
Free Food and Drinks. Having free sodas in the fridge and free snacks on the break room counter are tried and true techniques. Keep the snacks healthy and you'll win a few extra points for being concerned about employee wellness.
Movie Afternoons. All work and no play makes for a dull workforce. Fire up the conference room projector every Thursday at 2:00 PM and show a movie. Don't forget the popcorn!
Great Parties. Companies that party together stay together. Take time out to celebrate and do it in style.
Ownership. Give employees a piece of the equity pie and everybody's interests are suddenly aligned.
Dinner for Two. Don't forget to pamper spouses and partners too. Treat employees to a night out with their loved ones and you'll earn twice the love.
The Game Lounge. Foosball, billiards, air hockey, your favorite game console, or even something as low tech as Checkers or Monopoly -- let the games begin!
Beer. One reader wrote me that he has a keg tapped in his office every Friday afternoon and that employees love it. I'll drink to that!
Office Ambiance. Dingy walls and cramped quarters don't do much for employee love. On the other hand, employees love to work in an office that is stylishly designed with ample room and great furniture.
Tickets to the Big Game. Surprise your employees with an outing to the local ballgame.
Call In the Ice Cream Truck. When the ice cream truck pulls up in front of your business and gives your employees free ice cream, you’re sure to earn a few employee loyalty points.
Proximity to Public Transportation. Location, location, location! Most folks will trade salary for a shorter, easier commute. If you have a convenient location, you can count on a broader selection of employees.
Flu Shots for Everyone. I wasn't so sure about this one, but after two years of providing flu shots, I’m sure our winters are more productive with happier, healthier employees.
The Latte Machine. Throw out the cheap coffee maker and invest in a high-end coffee heaven maker.
Surprise Holidays. Everybody loves a day off, especially if it's not on the holiday schedule. Want to put smiles on the employees' faces? Announce a day off out of the blue.
Learn, Baby, Learn. For many people, it's not just what they earn, it's what they learn. Invest in employee training and you'll soon have a more loyal, not to mention more skilled, workforce.
Friends. People who don't have friends at work are more likely to quit. Those who have friends are more engaged at work. So do something that encourages friendships…start an office book club, for example.
Casual Dress Codes. If I had a dollar for every employee that's quit a job because the dress code was too formal, I'd be a rich man indeed. At SurePayroll, we are very carefree when it comes to dress codes and our employees appreciate that very much.
Positive Words and Opportunity to Succeed. Studies show that workers who receive regular praise and are given an opportunity to do what they do best every day are more loyal and more productive workers. As if we needed a study to realize that!
Free Parking and Transportation Reimbursement. Instead of raising salaries, offer to pay for parking or train passes instead. It's a small gesture but employees will appreciate it. And it's tax deductible.
Bring in the Masseuse. Last but not least, when the going gets tough, the tough get a massage. Make your office stress-free by bring in a masseuse once a month — or during your busier, more stressful times.
Sure, all of these things cost money, but it's a pittance compared to salary costs.
The idea is to invest in things that make your workplace so attractive that you win employees' hearts, so they see working in your business as more than just a way to earn more money.
There's a reason large corporations spend millions of dollars on non-cash sales and employee incentive programs. It's because cash will always be directed toward necessities, while other perks are remembered and appreciated -- they evoke an emotional response instead of merely a logical, financial one.
The bottom line? High salaries are an expensive burden to bear. You need to be competitive but you can manage your salary costs through other creative forms of compensation.
You'll always do better by compensating employees with a highly enjoyable, fun atmosphere filled with small perks that don't cost too much money.
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I just graduated mech engineering on May 2, and have recently wrapped up the job search. Aside from the quality of the work, the kind of non-financial "perks" were a major draw for me and resulted in my taking a position further away and for a few thousand less.
My point is that I am not alone and that most of the people I graduated with (even in a relative down job market) take a more holistic approach to job searching than just counting money and vacation days.
I sincerely hope any and all of my current and future employers read this post.
Great work
Great article
We are in the process of drawing up non-cash benefits as part of an overhaul of all comp & bens and I think that some of these will work for us.
I agree with MF that sometimes you can go overboard with these ideas, but provided they are managed properly it shouldn't have an adverse effect.
As a relatively large organisation we are lucky enough to have a 'loud voice' and are also negotiating with local suppliers to secure discounts for stores and services, covering everything from white goods, to gym memberships and even cars. You'd be surprised what you can get if you just pick up the phone and ask!
These are all great ideas. Something else for young companies to consider is the way their benefits are packaged relative to what they are paying in salaries.
For example, if you lower an employee's gross salary, and put the amount that you reduced into a simplified employee pension plan, you've just saved on FICA, given your employee a retirement plan, given them a raise, and eliminated the fiduciary liability that is normally associated with a 401(k) plan.
It's brilliant, and not very many companies are doing it.
These are great idea to boost company morale!
Great ideas! I would also add the option to work from home once a week to that list. Especially good for people who have long commutes.
Great ideas! I would also add the option to work from home once a week as a great benefit, especially for people who have long commutes.
Very interesting ideas. Of course, all employers want to find ways to keep their best employees.
But what does all this effort to provide “perks” do to the culture? An organization that seeks to throw things at employees to get loyalty is an organization that breeds entitlement. Employees want that even less than employers do.
Entitlement is a virus that can undermine your best intentions and vision for the future. Entitlement keeps you, your employees, and your company weak and unable to meet the challenges of competition and growth.
In his book Stewardship, Peter Block states, “At the heart of entitlement is the belief that employee needs are more important than the business.” My question is “who believes this way?” I think its managers who are trying to actually avoid the manipulation of employees – employees who know their managers are attached to not losing business, employees, clients, or even losing face. This managerial pretense keeps organizations from operating with integrity. When managers are so focused on not losing or not failing, they cannot be focused on winning or more importantly holding people accountable, or creating alignment, or building a healthy culture through communication.
What do employees really want? To be part of something meaningful. To make a difference and have a voice in their organization. To be listened to. To work in a company where they have a signature experience tied to the success of the company. This is what makes for a Best Place To Work and keeps employees. Not penny ante give-away’s that mask the real problems of managements inability to keep good solid contributing employees. Just ask any responsible employee.
Prosser's got it right. Good post. I want to work somewhere that I can contribute, be acknowledged and be part of something valuable and purposeful.
I want to work where people are accountable and keep their promises - from the CEO on down. That builds trust and fosters contribution and accomplishment all around.
I find this list to be very comprehensive and insightful. In response to the comment above, I don't think such perks would breed entitlement or be poisonous to the work environment. It is meant to be a list of possible suggestions, not all of them implemented at one company. Obviously, managers can select several benefits and institute them to customize individual incentive programs that best fit their respective corporate cultures. Otherwise it would be excessive. There's ample research that shows that non-cash incentives are more meaningful and resonant with employees. It's not manipulation, it's added value to the job itself.
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