Perk-cession ??

Another week, another buzz word! So this refers to organisations cutting benefits or perks to save cost in a time of recession or slow down.

Is it really happening? We have not seen this in our client base. Granted some bonuses are not being paid out but these tend to require a certain level of profit to be achieved and when not, they won’t be triggered, but the schemes are still in place.

We are absolutely seeing clients review their benefit offerings, to ensure they are what their employees really want and value and so everyone is getting the best return possible. It is also critical that benefits or perks reinforce the culture and values of the organisation, but often they do not.

What we do hear is that some of the more ‘esoteric’ perks like ping pong tables and free smoothies are super fun for about 5 minutes, but if you can’t pick up your child from school / go the nativity play or take your parent to a hospital appointment then they really lack value. Survey after survey is telling us that hybrid / home working and flexibility in work time are the two most compelling benefits. These have no explicit cost – granted it can be harder to manage, but the upside for the individual and the organisation is significant.

At Reward Heads, when we talk about Total Reward, we mean everything that an employee gets from their employment, not just that which appears on the payslip or end of year statements. We reference Maslow’s hierarchy of needs and at the top of the pyramid is a triangle which we call the Toblerone (easy way to remember especially for we chocoholics). In there we have many things that enable an organisation to stand out as an employer – ethos, engagement, development, sense of purpose and yes, flexibility. Happily many of these are low cost although not always as easy as buying insurance or access to an app.

Is there a Perk-cession? Not sure. If this means refocusing on what is wanted and valued by your people and in line with what the organisation is trying to deliver, then bring it on. If it is cutting core benefits then this will have consequences, short and longer term.

If we at Reward Heads can help you review your benefits and benefits strategy, we would love to hear from you. Please contact our Managing Consultant, Victoria Milford, at [email protected]