23 Employee Perks Your Staff Will Love
Did you know that according to a Korn Ferry report, by 2030 85 million jobs could potentially go unfilled because of the expanding talent shortage? It only makes sense that businesses would start preparing for the war for talent with strong, effective employee perks.
From company-funded campervans to in-store discounts, employers keep coming up with ways to attract candidates. Read on to find out how to choose the best new perks to help your organization and how to assess the ROI of your efforts.
What are employee perks?
Perks are non-wage compensations that a company offers to improve the employee experience. Some people use the terms “benefits” and “perks” interchangeably, but that’s not always accurate. Benefits packages typically cover the basics, like paid sick leave and insurance. Sometimes, companies have a legal obligation to offer these benefits. For a clearer understanding, here are some employee benefits examples: health insurance, retirement plans, and paid time off.
Meanwhile, perks are not mandatory. They’re “extras” employers choose to invest in to improve their staff’s happiness and quality of life. For instance, employees don’t need casual Fridays, bean bag-filled game rooms, or in-house cafes to get their work done. Yet, these extras can make a person’s time in the office more convenient and enjoyable.
The importance of employee perks in employee retention and attraction
Higher pay goes a long way in attracting top talent and reducing employee turnover rates, but well-rounded benefits and perk packages can also help.
A survey of 1,000 US-based employees found that recognition, better titles, and perks can be just as effective as raises in driving satisfaction. Keep in mind that employee happiness often comes hand-in-hand with higher productivity.
Interestingly, perks and benefits don’t only boost retention and satisfaction. They can also help you attract employees who left the company for a different organization, effectively turning them into boomerang employees.
Now, the boomerang trend isn’t new, but it’s been growing over the past few years. Our research shows that higher compensation is the number one motivator for returning to a former employer, with a 38% response rate. Employee perks and benefits come next at 23%.
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Cost-related advantages of offering employee benefits and perks
Aside from attracting and retaining talent, employee perks can also help with:
- Reducing insurance and health care costs via wellness programs that target risk factors
- Tapping into potential tax deductions (could apply to tuition reimbursements, meals, etc.)
- Boosting profitability by improving company culture and work environments
23 employee perks you should offer
Here are some of the best company perks to add to your organization’s programs:
Health and wellness perks
1. Healthy snacks and drinks
A 2015 survey showed that workers’ reported happiness went from 56% to 67% in jobs with access to free food. In fact, unhealthy eating habits can reduce productivity by up to 66%.
The occasional snack pack employee appreciation gift won’t cut it here. Instead, you want to provide regular healthy alternatives, either for free or at a reduced cost. Even a snack fridge and coffee station could make many employees feel appreciated.
Some companies, like Asana, go all out by hiring in-house culinary teams to prepare healthy, organic meals for the staff. If that’s out of your budget, consider working out a deal with a local restaurant to “cater” one or two days every week.
2. Mental health support
Unfortunately, 40% of employees say that their job negatively affects their mental health. To tackle this problem, companies can offer mental health support services as part of their wellness programs. Extra onsite perks such as free massage therapy, office pets, or fun social events can also help.
3. Gym memberships and fitness perks
Some CEOs believe that if they’re only going to offer a few perks, a gym membership should be one of them. After all, regular exercise can reduce health risk factors and provide some stress relief by boosting the production of feel-good endorphins.
Investing in an onsite gym could be worthwhile for a large-scale company. It cuts the cost in the long term, makes the perk more accessible, and opens the door to office fitness challenges that can help develop a sense of camaraderie. In fact, 23% of the respondents in a CareerBuilder survey said a gym facility could entice them to join a company.
However, signing up the staff for a membership at a local gym could work as well. If you want to give your employees a tad bit more flexibility, introduce reimbursement programs and let them choose their favorite fitness programs.
4. Yoga sessions
Aside from traditional gyms and fitness centers, some companies treat their employees to onsite yoga classes. Cox Enterprises and AppDynamics can both be great sources for this.
5. Ergonomic workstations
Some sources estimate that ergonomic injuries account for 33% of all work-related injuries. To avoid increasing the risk, you might want to consider getting ergonomic workstations if your employees complain of health problems like:
- Musculoskeletal disorders
- Back and neck pain
- Carpal tunnel syndrome
- Eye strain
Work-life balance perks
6. Remote work opportunities
Back in 2022, experts considered remote work to be one of the fastest-growing perks, with a growth rate of 315%. That’s not a surprise when you consider how many people got a taste of the convenient work-from-home models during the pandemic.
Our research indicated that parents with fully remote jobs are less stressed. However, it’s possible to find a hybrid work model that keeps employees happy and suits your industry.
If your company already offers work-from-home flexibility, you can consider adding other perks such as home-office stipends or internet bill reimbursement.
7. Flexible work hours
Even before the pandemic, there was a demand for flexibility in the workplace. Back in 2018, a survey by Clutch found that 41% of employees who received a range of perks agreed that flexible hours were the most important of them all.
Remember that the traditional 9–5 schedule doesn’t work for everyone. If you let your employees decide which schedule works best for them, you will likely see an uptick in productivity and work quality.
8. Sabbatical leave
Unlike paid parental leaves that are mandatory in many countries, sabbaticals (4+ weeks) are usually rare perks. Employers reserve the right to refuse the long vacation, and most of them do since it’s costly and could overload remaining employees with work
Prolonged sabbaticals can help employees recharge and focus on personal growth. So, weigh the pros and cons before you approve fully paid sabbaticals.
Financial perks
9. Employee stock options (ESOs)
If you implement them right, indirect-compensation stock perks can be the ultimate win-win. Employees get to share the company’s growth as the stocks appreciate over time. This perk also gives them a compelling incentive to perform better.
One concern here is that ESOs can take a while to vest. Still, the vesting schedules might encourage loyalty toward the company.
10. Home-office budget
Suppose you decided to give your employees remote work options. In that case, one of the top supplementary perks you can offer is a home-office allowance.
The general idea here is to help the workers set up and maintain their workspace. The allowance can cover the following expenses:
- Home office furniture
- Tech hardware (monitors, laptops, etc.)
- Phone bills and internet connection
Note that you’ll likely save a bit on office maintenance, snacks, and other expenses for each employee who works from home. Try to redirect those savings toward the remote work stipend.
11. Financial counseling
Financial perks aren’t limited to raises or bonuses. In fact, demand for financial coaching perks seems to be increasing nowadays—so much so that the take-up rate went from 51% in 2012 to 68% in 2023. Companies can partner with expert wealth managers to coach their employees on financial well-being.
While not all employees may choose to participate, those who do will gain valuable insights into their long-term saving goals, spending habits, and tax procedures. Wealth managers can use this opportunity to generate leads for new clients.
12. Tuition reimbursement
According to ClearCompany’s updated statistics, retention rates are 34% higher among workers who have professional development opportunities. The report also highlights that these perks boost employee engagement by around 15%.
That’s why tuition reimbursement can be mutually beneficial for the employee and employer. Some companies might cover one-off courses, while others are willing to contribute to accredited graduate courses.
Miscellaneous perks
13. Casual dress days
Letting employees ditch the formal attire is a low-investment morale booster. You don’t even have to alter the dress code entirely—just set a designated casual/dress-down day.
Many companies and organizations choose Friday since it marks the weekend, but you can always shift things to suit your organization’s schedule. Just ensure that you’re mindful of generational differences in the office and the general corporate culture before changing the dress code.
14. Volunteer time off
More and more employers are seeing the value in helping their staff give back to the community. In fact, SHRM estimates that the number of US companies that offer volunteer programs increased from 40% in 2014 to 47% in 2022. Group volunteer efforts can also nourish relationships among team members and keep the work environment supportive.
15. Environmental initiatives
According to the 2023 Randstad Workmonitor report, 77% of workers believe that their employer’s values regarding sustainability matter. You might miss out on talented prospective employees if you’re not making proactive efforts to create a more sustainable workplace.
Here are a few ideas to inspire your eco-friendly perk program:
- Onsite charging stations for electric vehicles
- Cashback on hybrid cars
- Cycle-to-work schemes
- Employee-tended gardens
16. Transportation assistance
If your employees rely primarily on their own cars, you could offer mileage reimbursements and toll payments. However, research shows that offering transit passes and bike reimbursements might be even better since they encourage more sustainable modes of transportation.
Supporting ridesharing or providing company shuttles can also be great perks.
Take a moment to assess your employees’ needs and how reliable public transport is in your area. You can also consider adding travel/relocation assistance perks.
17. Pet-friendly workplace
A multiple case study found that dog-friendly workplaces can have a positive impact on individual and collective well-being. The Vester-OnePoll survey showed that seven in ten pet owners wouldn’t mind a pay cut if it meant that they could bring their pets to work. 48% even claimed that having their pets nearby would make them more productive.
However, there are some potential drawbacks and liabilities to pet-friendly offices. For one, some employees may be allergic. Also, having hyperactive pets running around the office can be quite a distraction. Needless to mention, you don’t want to be responsible for bites or other injuries.
To control the situation, make sure to enforce a fair pet policy before you allow employees to bring their furry friends to the office.
18. Childcare facilities and assistance
Just as you might expect, puppies aren’t the only family members that workers want to bring into the office. A survey by Professor Alicia Sasser Modestino found that around 13% of working parents had to cut down their work hours or leave work entirely to care for their kids.
The US Chamber of Commerce Foundation estimates that childcare can cut absences and turnover rates by 30% and 60%, respectively. Yet, only 14.3% of large organizations and 8.6% of small-scale organizations offer onsite childcare perks, according to the fall 2022 report by Best Place for Working Parents.
Nursing rooms paid time off, backup care options, and child care assistance via flexible spending accounts (FSA) are all great perks to consider as well.
19. Game rooms
Researchers found that a team’s energy and engagement outside of work are great predictors of productivity.
A study of employees in a call center showed that simply moving the scheduling around allowed everyone to have coffee breaks at the same time. As a result, they got to spend time together away from their workspaces, which was enough to reduce performance gaps and reduce the average handling time.
Now, imagine the sort of team-bonding boost your teams will get from an in-house game arcade vs. a typical break room.
A Brigham Young University study showed that when newly formed teams played video games together for 45 minutes, they experienced a 20% boost in productivity in the subsequent task. That said, video games aren’t your only option here.
Ping-pong or pool tables can help your employees break their sitting time and add short bursts of activity throughout the day.
This is especially true since sitting for over eight hours a day can be detrimental to your health, according to Mayoclinic expert Edward R. Laskowski, M.D.
20. Free book programs
While playing video games might be someone’s go-to unwinding activity, research shows that reading is an even better de-stressor. You might want to invest in an onsite library in your organization or consider reimbursing employees for book purchases. HubSpot even created a Free Books Program that actually doubles as an ongoing education perk.
21. Concierge perks
Employers can offer subsidized concierge services to make the workers’ lives a bit easier and help them balance their time better. The perks can range anywhere from organizing dry cleaning and oil changes to booking event tickets.
22. Cultural enrichment
Many employees report that they enjoy listening to music while working, which creates an opportunity to add a fun cultural perk. For instance, TouchTunes employees get access to free music in the workplace. The company’s HR director, Stephanie Badouix, finds that this is a great perk for removing barriers in the workplace.
You can also look into discounted access to museums, concerts, and other cultural enrichment events.
23. Exclusive employee discounts
Forbes Advisor reported that 24% of workers in a survey saw employee discounts as an important work perk.
Depending on the industry, you can either offer your company’s products/services at a discount or partner with other businesses. Large-scale companies in the food industry might even balance both approaches by combining an in-house perk with a few partnerships.
Take Starbucks, for instance. Employees can use the 30% discount to grab their favorite drinks from the store itself. But there’s also an employee pricing program that covers around 20 categories, from shoes to home appliances.
Companies can also create incentives for employees to stay at the company by increasing discounts according to tenure. For example, Whole Foods’ employees start with a 20% in-store discount and then make their way up to 30% after six months on the job.
Assessing the cost-effectiveness of employee perks
Perks that help boost the employee experience generally pay off well. Our studies found that organizations that rank high in employee experience enjoy double the return on sales and nearly three times the return on assets compared to organizations in the bottom quartile.
But you might wonder how to evaluate the effectiveness and ROI of your own perk programs. Here are two valid approaches:
Balancing the investment with the returns
In some cases, it’s feasible to come up with a cost-benefit analysis (CBA) that compares the costs with the dollar value of the program results. If you offer a wide range of perks, you’ll want to look at the CBA of each one and then create an overview.
However, things get tricky with perks like free snacks. It’s not unreasonable to believe that the perks would boost employee engagement, but you might not be able to find clear-cut metrics to assess that.
Alternatively, you could use estimates from service providers and large companies in your industry as a rough guide.
Here are some examples to consider:
- Research shows that ROI from wellness programs can go up to 6:1.
- Lumina Foundation’s white paper states the ROI of education reimbursement programs can be as high as %129.
- Enrich estimates that a financial wellness perk could help companies save $15.51 for each dollar spent on the program.
Conducting surveys and collecting feedback
Don’t just rely on theoretical ROI figures, though. To really assess how well the programs are doing, you have to see how the employees feel about the work environment.
Case studies of successful employee perks programs
There are plenty of successful programs out there. Some are traditional, while others are a bit out of the box.
Here are three companies that stand out from the crowd:
Johnson & Johnson health and wellbeing perks
When Johnson & Johnson started the Live for Life program in the 1970s, the concept of “workplace wellness” as we know it today, was fairly new.
Yet, the healthcare company took a groundbreaking step with onsite health centers and fitness facilities. Over time, the perks and benefits range expanded to include best-in-class perks, including:
- Parental leave
- Caregiver leave (to support critically ill family members)
- Bereavement leaves
- Fertility treatments and surrogacy support (US only)
- College coaching and loan counseling (US only)
- Child care benefits
- Energy for Performance course (helps employees identify issues in their workouts and optimize their energy levels)
Years later, Johnson & Johnson is still set on being a workplace with healthy employees.
According to Peter Fasolo, Executive Vice President and Chief Human Resources Officer, the company’s health stats beat the national averages. He also claims that their healthcare costs are around 2–3 percentage points lower than that of other major corporations.
Project44’s Roameo fleet
One of the stand-out case studies is Roameo, an upscale van that takes work-from-home to the next level and lets employees work on the go. Of course, the amenities include Wi-Fi, charging ports, and workspaces. However, it’s also super pet-friendly. This way, team members and their loved ones can take road trips and camp out while getting work done.
Plus, project44 covers the rental costs and offers a concierge enterprise system so that team members can easily book and pick up a campervan when they need to hit the road. Roameo turned out to be such a hit with the employees that the pilot vans were all booked up within minutes after posting.
Amazon’s Career Choice program
Amazon launched Career Choice back in 2012 and kept tweaking it slightly over the years with course expansions and new partnerships. Yet, the goal remained the same: to encourage and empower employees to learn new skills.
Nowadays, there are three track options: foundational skills, career pathways, and college credit courses. There are some offerings for GED and ESL, too.
Generally speaking, employees choose a track and pick suitable courses from Amazon-approved schools in 14 countries. Then, the company covers the tuition and reimburses books and fees, with an annual maximum.
Whatever Amazon is doing to promote the program, it’s working—the participation rate went up by a whopping 329% from 2021 to 2022. Those two years alone witnessed 93% of all the program’s participants since its launch in 2012.
Best practices for implementing employee perks
While workplace perks can help organizations in more than one way, sometimes employees see them as unimportant or gimmicky—it’s all about how upper management pitches the programs.
Here are three tips for choosing and implementing the right perk programs at your organization:
Getting input from employees and stakeholders
Before you start throwing free snacks and gym memberships at your staff, figure out what your employees actually want.
Sure, there are stats about generational preferences, but you want more relevant insights. So, once again, pulse survey tools will come in handy.
Utilizing data and analytics to inform perk decisions
After narrowing down the survey results to a short list of employee perks, you can start comparing them to lay down your priorities.
Look at the current industry trends and cost-benefit estimates to help you decide which programs you really want to offer.
Communicating and promoting perks effectively
There’s no point in crafting the perfect list of perks and then investing time, money, and resources in the implementation if your employees never participate.
For instance, stock and equity perks can be a great opportunity for employees to build a stake in the company they’re working for. Yet, some experts believe people “shun” share plans because they don’t understand them enough.
Unfortunately, the “if you build it, they’ll come” line of thought fails companies sometimes. Instead, you have to actively educate your employees about the benefits and promote the perks you offer.
In an interesting experiment, researchers found that increasing the incentive value alone isn’t enough to boost participation. Promotion is key, even if it’s as simple as sending out email reminders.
If the enrollment rates are still not optimal, companies need to look into what is holding back employees. As an example, Johnson & Johnson’s Energy for Performance 2-day course can help out staff members who feel too worn out to reach their fitness goals.
FAQs
What are the most popular employee perks?
The Forbes Advisor survey found that many in-office workers value perks like:
- Flexible hours
- Remote work options
- Discounts
- Professional development
- Four-day work week
On the other side of the equation, employers favored benefits like free drinks/snacks and team bonding activities.
How do employee perks contribute to company culture?
Perks can help employees stay engaged but also find their work-life balance, which goes toward building the psychological safety and well-being characteristic of good company culture. Still, there’s only so much the perks can do to improve a toxic culture. You have to work on the core company values and make your way up.
Are employee perks a legal requirement?
No, unlike the mandatory benefits, most of the common perks aren’t legal requirements. Companies usually offer perks willingly because of the potential ROI. Sometimes, employees might be able to negotiate some additional perks and benefits that the basic compensation package doesn’t cover.
How can small businesses offer competitive perks?
Small business owners can go for perks and fringe benefits that don’t require huge investments or complex logistic planning. The common ideas include:
- Relaxed dress code days
- Flexible work hours
- Volunteer opportunities
- Free snacks and drinks
- Regular team theme days
Can employee perks backfire?
Yes, if business owners approach employee perks as a band-aid solution to serious issues in the workplace, they might inadvertently increase dissatisfaction and disengagement. Some experts believe that “bribing” workers into being happy will only backfire in the long term.
Which industries have the best employee perks?
It’s hard to pinpoint the industries with the best perks because the whole notion of “best perks” is largely subjective. However, a Deputy US-based survey with more than 1,000 participants revealed that people in telecommunications were the most satisfied with their current work perks. Finance, insurance, manufacturing, public administration, IT, and legal services all ranked high as well.
Conclusion
Offering employee perks can give your company an edge in the fight for talent, but there’s something in it for you, too. After all, even the seemingly outlandish perks can bring decent ROI in terms of productivity, reduced healthcare costs, and improved employee retention.
While many trendy onsite additions sound fun, the key is to pick the right employee perks for your company. There’s no one-size-fits-all model. Make sure you get accurate insights from the staff, follow up with engagement surveys, and keep an eye on the participation rates to see what’s working.