Organizations are missing the mark on workplace perks

If there's anything employers have learned over the last few years, a good workplace perk can go a long way to boosting engagement and employee satisfaction. 

Fifty-six percent of employees would trade a salary increase for certain perks, like flexibility and more competitive leave policies, according to data from technology insights blog TechnologyAdvice, and another 60% say benefits beyond healthcare and retirement are a major factor in considering a job. But overpromising and underdelivering on those perks and benefits could end up having devastating consequences on recruiting and retention. 

"These organizations aren't always creating a path for these perks," says Brian Smith, managing partner at consulting firm IA Business Advisors. "As a result, people are taking jobs thinking they're getting what they want without understanding what the dynamics of that job really are." 

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One of the more common areas where companies can fall short is when trying to improve their workplace flexibility policies. For example, companies will boast unlimited PTO without disclosing the limitations and compromises, such as high-demand roles that require a certain amount of hours or a lack of the proper back-end systems and portals to support the use of unlimited PTO, which could make taking advantage of the perk harder than anticipated.  

Hybrid and remote benefits, which can attract a large number of applicants amidst RTO mandates, are also often poorly managed with employees being asked to work more days in-office than previously discussed or being continuously tracked and monitored at home. As a result, 51% of employees are unhappy with their current benefits package, according to data from workplace insights website Glassdoor. 

"Employers tried to lean into employees' demands without taking into account their ability to fulfill those promises," Smith says. "Not only do employers end up with a demoralized workforce, but they've also put themselves in a position for people to take advantage of the perk because they never set proper expectations, either." 

While benefit leaders may mean well when they offer sweeteners like unlimited PTO and hybrid or remote benefits, the consequences of mismanaging expectations can do serious damage. High turnover rates due to employee dissatisfaction can hurt an organization's bottom line, Smith says.  

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Fortunately, there are ways for organizations to both avoid fumbling potential benefit strategies and address any damage that has already been done, Smith says. It just requires a lot of feedback and open communication. 

"First, get very transparent about what your intentions were and find out the gaps that are being created by those intentions," he says. "Then work with your team to fill those gaps and get them engaged in a solution. If they feel like they have a say in the improvements it will help them to feel like they could still get something from the perks they were promised."

As for the companies that are still considering implementing popular perks, Smith urges them to take the time to consider their own limitations and whether there are smaller, more realistic perks that could provide more value in the long run.  

"As long as employers are balancing their needs with their understanding of their workforce, they can develop perks that can meet the needs of both," Smith says. "Then they'll be able to make them as broad and as expansive as they can and we'll continue to see these hybrid benefit programs develop, mature and evolve."