Business people meeting at conference table and laughing.
gettyPerks are part of what makes work fun. But in a time when entrepreneurs are tightening their belts, what’s the “right” budget for these non-essential benefits?
On my team, we enjoy office snacks, Friday lunches, and tech like noise-cancelling headphones. If our sales were to go south, however, we might have to cut back.
Not every company is as fortunate as we’ve been. Startups, in particular, don’t have a lot of wiggle room. Because perks can help companies attract and retain talent, however, cutting them out entirely isn’t a smart idea.
Fine-Tuning Your Perks Fund
So what’s the right amount to spend? The truth is, it’s up to you. The size of your team, the perks people would appreciate, and what your competitors are doing must all be factored in.
Whatever your company’s situation, you can offer some perks without worrying about bankruptcy. Here’s how to set your budget the smart way:
1. Start With Small Wants
Not every benefit your company offers has to be monumentous. Before you offer a timeshare on a yacht or build an indoor pool, ask what your team actually wants. Smaller perks that your employees actually appreciate are more valuable than expensive ones they don’t.
Do you provide free coffee on cold mornings? What about a Spotify Premium account for jukebox-style listening? Either of those can be had for a few dollars per month.
Too many employers shoot for the moon when all their workers really want are the basics. And remember, you can always add more perks as your company picks up steam. Until that time, keep it simple.
2. Prioritize No-Cost Perks
Some of the best work perks come at little to no cost. If your team is just as productive at home as they are at the office, for example, why not give them the freedom to work wherever they want?
Here, “flexibility” is the name of the game. If customers never come through your door, let employees wear what they want. Allow them to set their own hours, as long as they’re still able to get their work done. Encourage them to bring their pets to the office with them.
3. Survey Similar Companies
While your perks don’t need to break the bank, they do need to be competitive with other employers in your area. Otherwise, they may not pay off in terms of recruitment and retention.
Start by looking online. On sites like Glassdoor, reviewers often comment on the benefits offered by their employer. If you can’t find the details you’re looking for there, reach out directly.
Most employers will happily talk about the benefits they offer. Just don’t mention your reason for asking is to compete with them.
4. Look For Waste
Look around for fat to trim. You may be able to scrounge up enough money for work perks without compromising elsewhere.
For small teams, $300 per month may be plenty of fun money. Cobbling that amount together could be as simple as cutting the cord on your cable bill, canceling online publications you don’t read, and turning down the heat on weekends.
Don’t be draconian about it. You don’t want your pipes to burst because they froze, or for your team to think you’re Scrooge McDuck. But chances are, your company is leaking more money than you think.
5. Get Creative
Often, the perks that perk the most ears aren’t the cookie-cutter ones every company offers to their employees. Creative solutions can work not just in your budget, but in your favor.
Perhaps your company can work with the stylist next door to give employees free haircuts. Maybe you can find an ice cream machine on Craigslist to install in the break room. If you’re a larger team, you might be able to leverage your size to secure low-cost memberships at a nearby fitness facility.
6. Focus on Experiences
Who says benefits have to be physical objects? You can get just as much or more value out of experience-based work perks.
Part of building culture is enjoying activities and traditions as a team. If you have cyclists on your team, what about a biweekly bike ride? Why not take the occasional afternoon off to volunteer?
7. Encourage Customization
Large benefits programs can be expensive because they incorporate the entire organization. Skip one-size-fits-all perks in favor of customizable packages.
A good way to do this is through stipends. In place of a gym membership, for example, I used to give my team a monthly wellness stipend. This allowed me to keep a lid on costs while giving them options.
Try a stipend model for things like at-home work, snacks, and professional development. Perhaps someone would prefer to load up on educational books than attend a conference.
8. Make a Trade
I’m a big fan of feeding multiple birds with one scone. Trading services lets you keep your costs low while building relationships with other companies.
This is more common than you might think. Restaurants commonly offer each other trades to help employees mix up their lunch breaks.
Think about what you can offer. If you’re an ad agency, perhaps you can promote a nearby theme park in exchange for free admission during the slow season. Say you’re a print shop: Might a movie theater be willing to trade tickets for new staff t-shirts?
To employees, benefits are a big deal. That doesn’t mean, however, they have to be a big slice of your budget. More fun for less money makes everyone happy.
The Link LonkNovember 01, 2020 at 08:00PM
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How To Set Your Budget For Great Work Perks - Forbes
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