Forget Free Snacks and the Ping Pong Table: Job Perks that Really Matter

The talent shortage is the top concern for 70% of today's employers. 63% of hiring companies experience an overflow of unqualified candidates, 54% face ghosting, and 43% get too few applications for their open positions. In these conditions, a high salary and cookies in the office are no longer enough to attract and retain a skilled professional to your team - you need to elaborate a system of added perks to win the battle for talent.

Job perks are additional bonuses employers offer to their employees. These bonuses are not necessarily monetary - they can be anything from medical insurance or paid extra days off to training opportunities. In this article, we will explore how job perks affect employee satisfaction, find out what perks employees prefer, and discover the most unusual perks companies offer.

According to SHRM companies implement and increase benefits to meet the following challenges:

• employee retention (72% of employers)

• attracting new talent (58% of employers)

• as a response to employee feedback (54%).

And it definitely works. LIMRA's 2022 study reveals that job perks are vital in employee attraction and retention. Four in 10 employees admit that their benefits are a considerable factor that makes them stay in their current job. Another 63% are at least somewhat more likely to stay with their current employer because of their perks.

However, the scope of benefits matters. 61% of employees with six or more bonuses say they are satisfied with their current benefits package, but seven out of 10 employees with one to three benefits cannot say the same. Covering the essential perks, such as medical care, is valuable, but you as an employer can increase your employees' loyalty even more by offering additional bonuses.

Companies offering job perks enjoy better performance, above-average recruitment effectiveness, and higher retention, as seen in the chart below.

Job perks are a powerful tool but it works only if it is valuable for employees. So, what benefits do employees prefer the most? FRACTL answered this question in their recent study. They asked 2000 people to rank how heavily each in the list of 17 benefits would affect their choice between a high-paying and a low-paying job.

Unsurprisingly, health, dental, and vision insurance were the most desirable benefits for 88% of respondents. The second vital perk group is flexibility: flexible hours, more vacation time, working from home, and even unlimited vacations - everything that helps employees balance their work and life better. More than 80% of respondents consider these perks important when choosing a job. Notably, these benefits are more preferred by women than men.

Student loans and tuition assistance closes the three most preferred benefit groups. Other desired benefits include paid parental leaves, free daycare, and free snacks and coffee. Free food and company-sponsored gatherings were low on the list - although employees still value them, they are not important enough to significantly affect the employees' job choices.

Forbes Advisor expands this perk list in their 2023 research. Employer-covered healthcare still tops the list, closely followed by life insurance, with 45% of employees considering it the top benefit. Pension and retirement plans are vital for 34% of employees. With 37% of American retirees having no savings for retirement and only 12% having saved the minimum recommended amount, employer-covered retirement is rightfully a desired job perk.

Summing it up, what employees value the most are benefits that improve their lives and make them more stable in and beyond office walls. Employees appreciate when the employer sees them as whole persons, not just their positions in the company or lines in the payroll table. If your goal is to implement a benefits system that will be valued by your employees, start with the basics: work on healthcare and retirement plans and provide life insurance. Beyond that, prioritize benefits that help employees balance their work and life better. These benefits may vary depending on employees' values and the company's resources, but they must be the perks the staff truly appreciates.

Qustodio is software that helps you monitor and control internet use on devices. Initially designed for parental monitoring, this may also be helpful for businesses that want to ensure their employees are using company devices properly and getting things done.

As we mentioned above, when the basic perks are covered, providing extra benefits continues to add value for employees. Some companies are very creative in this field: their employees enjoy free books, massages, and even on-site health services. Let's discover 6 unconventional job perks provided by employees.

No strict work hours

Netflix takes a bold approach to better work-life balance for employees, refusing strict work hours completely. At Netflix's California headquarters, managers do not track vacation days and work hours, assessing each employee by what they have done, not by how many hours they have spent in the office. Employees of all levels are welcome to take the time off, especially new parents.

Extended vacations

Metis Communications, based in Boston, offers one of the most generous vacation policies. Every staff member has a yearly three-week vacation plus their birthdays and a bonus last week of December off. Those who have worked for the company for four years, enjoy the fourth vacation week every year, and after five years of employment, employees get Friday vacation days in the summer.

Fertility and family-focused benefits

Your life is more than your job, and it is nice to know that your employer cares not only about your KPIs but also about your family.

Many large companies partially or fully cover egg-freezing costs as a support measure for employees who delay pregnancy. Among such companies are tech giants Google (covers up to $75,000 per employee), Intel (up to $40,000 per employee), Microsoft ($50,000), the streaming service Spotify ($10,000), the professional network LinkedIn ($10,000), and few others.

The USA is one of the few countries where maternity and paternity leave is unpaid, so many companies compensate for this blind spot with their benefit packages. For example, Deloitte offers up to 16 weeks of paid parental leave to eligible parents with newborn or adopted babies. Employees can also use this leave to care for a partner, child, sibling, or parent, who has a serious health condition. Another example is Netflix with its unregulated work and vacation time: its employees often take four to eight months of family leave.

The outdoor clothing and gear company Patagonia is famous for its on-site childcare program that has been Eden for employees' kids and their parents for more than 30 years. Children enjoy lots of outdoor play, a secret garden, and a farmer's market, all under the supervision of teachers trained in child development. Employees are encouraged to join their kids during lunches and whenever they are tired of work. Such benefits bring stunning results: 100% of new mothers return to work to the company, compared to the average of 79% in the U.S.

Sport activities

Patagonia provides fun activities not only to employees' kids but to its grown-up employees too. The company encourages them to stay physically active by offering bikes, volleyball courts, yoga and even surfing in the middle of the workday.

Bain & Co., a global top management consulting firm, holds yearly global soccer tournaments, with more than 1,000 employees participating in them on average. Tournaments are held in various countries.

Student loans assistance

Even though student loan assistance is one of the most desired perks among employees, few businesses actually offer it. PwC, a large company providing trust and consulting solutions, helps its employees pay down student loans by offering $100 per month or $1200 per year. Employees can get this benefit for up to six years, which, factoring in the interest, can save them up to $10,000.

Travelling discounts and compensations

Employees of the travel booking company HotelTonight have a chance to win a spontaneous free vacation in the monthly "spin-the-wheel" events. Besides, they are eligible for flexible vacation time when they can stay in partner hotels and enjoy the HotelTonight app.

Airbnb grants its employees a travel stipend of $2,000 per year to see the world and stay in the Airbnb listing of their choice.

Qantas, the leading Australian long-distance airline brand, provides its employees and their families and friends with heavily discounted air travel within Australia and worldwide. Besides, employees enjoy deals on accommodation, shopping, entertainment, and more.

These are only a few unconventional benefits employees enjoy in various companies. To learn more, check out our article dedicated to unique

The war for talent is real, and job perks have become a powerful weapon in an employer's arsenal. While traditional benefits like health insurance remain crucial, today's employees increasingly value perks that enhance their well-being, work-life balance, and financial security.

Perks are not just a nice-to-have, but a strategic investment for companies seeking to attract, retain, and motivate a skilled workforce. However, perks alone will be ineffective if the company experiences leadership or culture issues.

By offering a well-curated selection of perks that cater to employee needs, values, and demographics paired with strong leadership and corporate culture, companies can create a work environment that fosters loyalty, engagement, and ultimately, success.