Company perks help draw in new employees, and then keep them engaged once they’ve settled in. But not every perk is worth your time. Some things—like honoring an employee of the month or offering competitive rewards—don’t function as well in practice as you might expect.
To find out which perks you should reconsider offering, we asked members from Young Entrepreneur Council this question:
Q. What is one traditional perk or benefit you’ve found to be not worthwhile for today’s employees?
1. Awards
Paper awards or trophies don’t work with employees—they don’t want that kind of recognition. They would prefer more challenges or responsibilities. Recognition should be about feeling part of something rather than getting something to frame for the wall. —Drew Hendricks, Buttercup
2. Competitive rewards
Competition might work for sales employees, but for most it’s counterproductive, cultivating a culture in which employees game metrics rather than focus on doing great work. The most effective reward is management, colleague and customer recognition of great work. I prefer to foster a collaborative environment that respects employees’ need for a work-life balance and meaningful work. —Justin Blanchard, ServerMania Inc.
3. On-site-only perks
Things on-site, like vending machines, parking spots, gyms, or massages, don’t really work. That’s because there are so many freelancers or virtual staff that it leaves these people feeling alienated and unappreciated. It’s got to be something that works for everyone. —Angela Ruth, Calendar
4. That ridiculous rec room
You know the one I’m talking about. There’s a foosball table, Xbox, and a bunch of swag from ThinkGeek. It’s the highlight of every office tour, but do you know who else goes in there? That’s right: nobody. Why? It’s a trick. Maybe not actually—the boss put it there with the best intentions—but who’s playing video games while everybody else works? Whoever it was doesn’t work here anymore. —Corey Northcutt, Northcutt Inbound Marketing
It was all the rage just a few years back, but an open office design is not all it’s cracked up to be. It sounds nice to have a more open work space, and it should improve communication between coworkers in theory. In practice, however, removing walls from everyone’s cubicles just takes away their privacy and introduces endless distractions. Sometimes it’s best to just stick with what works. —Bryce Welker, Beat The CPA
6. Equity stake
The equity stake position is not as popular as it once was. That’s because people have seen there are no guarantees. Instead of that, life balance and feeling a part of something that achieves social good means so much more. —Zach Binder, Bell + Ivy
7. Employees of the month
Even if these awards do make an employee feel recognized, they also may cause bad blood in an office. For each person who gets recognized, there are other team members getting the message that they were not as good of an employee this month, as the pet or the favorite. Even the recipient isn’t receiving what he or she really wants: to feel valued, to have interesting work, or more personal time or money. —Diego Orjuela, Cables and Sensors
8. Corporate team building and retreats
Teamwork and proper motivation are vital to any business. However, gathering for a weekend at a remote location and listening to a speaker, or brainstorming new ideas is usually a waste of time. Instead, sending various members of the team individually to attend focused conferences or networking events can yield greater results, as employees teach each other the skills they have learned. —Ryan Bradley, Koester & Bradley, LLP
