Could offering complimentary meals or gym memberships truly help in attracting top talent? It’s certainly possible. Organizations that provide benefits beyond standard health insurance and retirement savings plans might have a competitive edge over those that don’t. To remain attractive in the job market, employers should assess which perks and benefits resonate most with their current employees and prospective candidates.
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What are employee perks?
Employee perks refer to non-monetary incentives that employers provide as part of their talent management strategies. These perks enhance benefits offerings, making them more attractive compared to competitors and appealing to a diverse range of employees. Tech companies in Silicon Valley initially popularized employee perks, and various industries and organizations of all sizes in Canada have increasingly adopted them since then.
How are employee perks different from benefits?
Employers can implement an employee perks program at their discretion, unlike some traditional benefits that are often mandated. They may be need to provide certain benefits like health insurance, retirement savings plans (such as Registered Retirement Savings Plans or RRSPs), and paid family medical leave, depending on their province and business size. Typically, employers cover part of the insurance premiums and contribute to employees' retirement savings when the plans allow.
Types of employee perks
As organizations look to attract talent and foster a positive workplace culture, they are becoming increasingly innovative with employee perks. Some popular options include:
- Complimentary meals or snacks
- Subsidized gym memberships
- On-site fitness classes
- Health and wellness initiatives
- Professional growth and training options
- Transportation perks
- Flexible scheduling options
- Educational assistance
- Savings on personal insurance (such as home, auto, renters, etc.)
Benefits of company perks
Employee perks can set companies apart in competitive markets. When employers offer perks, they demonstrate creativity and a commitment to their employees, which can lead to:
- Reduced healthcare costs
- Better talent attraction and retention
- Improved employee engagement
- Increased productivity and performance
- Greater innovation
- Stronger employee relationships
How to choose employee perks
Selecting attractive perks often depends on the employees’ personal needs, among other considerations. Here's how to make effective choices for your organization:
- Survey employees: Gather input to identify the perks that employees genuinely want. This increases utilization rates and strengthens vendor relationships.
- Allow perks to build on each other: Some perks naturally lead to additional offerings. For example, if a wellness program is established, it may be logical to later implement subsidized gym memberships.
- Align perks with the business model: Effective perks should reflect the company's mission and vision. For instance, a travel agency could provide employees with a travel stipend.
Once employee perks have been introduced, employers should regularly assess their effectiveness and adjust based on employee feedback.
How to make perks more affordable
Employers can effectively reduce the costs associated with providing employee perks by proactively reaching out to local vendors and sharing details such as employee count and anticipated usage frequency. By communicating this information, vendors are better positioned to offer tailored solutions, often providing discounts for larger groups or more frequent usage. This approach helps develop positive relationships with local businesses and enhances the overall value of the perks offered to employees.
What perks should employers consider?
Employers should consider perks that align with their objectives. They might ask themselves:
- Am I aiming to cultivate a strong, positive workplace culture?
- Will these perks help distinguish our organization in a competitive market?
- Are perks being utilized to mask underlying issues within the organization?
Those who respond affirmatively to the last question must recognize that perks cannot serve as a band-aid solution. While they can enhance an employer's brand, perks alone are not a comprehensive branding strategy.
Those who respond affirmatively to the last question must recognize that perks cannot serve as a band-aid solution. While they can enhance an employer's brand, perks alone are not a comprehensive branding strategy.
Before implementing employee perks, employers should thoroughly assess their organization, considering its culture, reputation, and total compensation packages. A strong brand and compensation strategy may indicate that perks can enhance reputation and competitiveness within specific industries or regions.
Frequently asked questions
What do workplace perks mean?
Workplace perks supplement traditional benefits packages. They can enhance employee satisfaction and help attract new talent.
What is an example of an employee perk?
Common examples include subsidized gym memberships, which many employers use to promote employee well-being and productivity.
What perks do employees value most?
Research indicates that open communication with managers is one of the most valued perks among employees. This highlights that impactful perks don’t necessarily require a large budget—simple, low-cost incentives can leave a significant impression.
Why are employee perks important?
Employee perks are essential in helping businesses with strong reputations distinguish themselves in competitive talent markets. Perks can enhance engagement, retention, productivity, and more.
Learn More
Are you aiming to create a more engaging workplace for your team? You can enhance employee satisfaction and retention with ADP’s Talent Management Software.
Reach out to us to discuss how to elevate your employee experience and see how businesses like yours are thriving with our solutions. Call 866-622-8153 or start a quote today!
This guide is intended to be used as a starting point in analyzing employee perks in the workplace and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.
