Perks are perking up again

AN ANALYSIS OF WORKPLACE TRENDS shows that employee perks, a reliable barometer of job market strength, are beginning to make a comeback. While not as extravagant as those offered in the late 1990s, companies clearly are shifting their focus from workforce reduction to workforce retention. Firms realize that they require a foundation of experienced, trained, and motivated workers. These employers are improving and/or adding perks to prevent an exodus of workers that could occur as the economy continues improving. They also may be looking further down the road when severe labor shortages are expected to return.

Several surveys indicate that many workers are not reluctant to leave their current employers if they can land a better deal elsewhere. Workers' desire to change jobs and the threat of major labor shortages resulting from mass retirements among baby boomers undoubtedly have human resource departments examining ways to hold on to valued employees. They probably are looking at lists of perks--past and present--to see which ones can be improved, which ones can be resurrected, and what new ones can be created.

An analysis of perks offered in today's workplace shows that many of the 1990s-style benefits, such as game rooms and luxury car leases, have been abandoned. The perks that remain popular with employers and employees are those that help workers stay healthy, career focused, and financially stable. Perhaps the most appreciated are those that help individuals maintain work-life balance.

SpectraSite, a Cary, N.C.-based mobile phone tower operator, pays $1,200 per month to a concierge services firm, which will do anything for employees, from finding a landscaper to taking a car for an oil change. The company has maintained the perk despite the fact that it went through Chapter 11 bankruptcy proceedings. The firm's vice president of human resources notes, "We're running lean and cannot afford to have people wasting time running errands."

To help employees tend to family and personal responsibilities, Mortgage Experts Inc. in White Plains, N.Y., gives its people wide latitude when it comes to scheduling flexibility. As long as the work gets done, a person can take the time he or she needs to attend a child's soccer game or let a plumber into his or her home.

Work-life balance is just one part of the growing concern companies have about the overall emotional and physical health of their workers. Employees who are stressed out or depressed because they do not feel as if they are giving enough attention to the nonwork aspects of their lives ultimately are unproductive.

In addition to providing on-site day care, fitness centers, and other stress-reducing perks, the GlaxoSmithKline pharmaceuticals offers employees at its North Carolina facility shuttle rides to and from the office so that they can avoid the stress and congestion issues associated with commuting.

Call centers especially have found that perks are an integral component of employee retention. They are a high-stress environment where employees typically are on the phone for seven to nine hours a day, often dealing with irate callers, at wages that start at eight dollars an hour. A study by insurance provider MetLife found that call center personnel are four times more likely to miss work due to anxiety or depression. In an attempt to come in below an industrywide turnover rate of 33%, Comcast Corp. provides employees at its Plymouth, Mich., call center with a gym and a quiet room with overstuffed chairs for napping or reading. The company plans to add a walking trail around the complex.

More and more companies also are learning that workers desire the opportunity to grow professionally in the workplace. Hewlett-Packard, for instance, has boosted its employee education and development budget by 20%. Meanwhile, employees at Comcast receive regular training at "Comcast University" to help them advance to other jobs within the company.

Nationwide Insurance, based in Columbus, Ohio, established a career-planning website in 2003. The site provides information on company job opportunities, career development, and an in-house mentoring program. Nationwide also is helping to educate its employees in financial matters, acknowledging that workers distracted by such issues on the job are not giving their full attention to the company's priorities. It is adding classes and seminars on personal finance issues and 401(k) investments.

Sometimes perks simply are about keeping employee morale elevated. Knowing that an improving economy might prompt valued employees to seek new opportunities, the owner of Ticketcity.com has lavished his best performers with tickets to the Masters golf tournament, access to country clubs, and invitations to a management retreat in Sedona, Ariz.

The partners at one Connecticut law firm regularly don chef hats and serve breakfast to junior associates and support staff. Larger companies have the ability to offer a wide range of perks to help keep workers happy. Employees at Pella Corp., Pella, Iowa, receive tuition reimbursement, matching contributions for charitable gifts, and onsite dry cleaning.