New perks to keep the workers loyal
With the economy running at full steam and a tight labour market, businesses are having to find increasingly innovative and creative ways to find and keep staff. Reports in recent weeks have highlighted some of the measures companies have been taking to lure and retain staff, including offering extra annual leave, iPods, and job swaps.
But these initiatives are just the tip of the iceberg, according to Chandler Macleod Consulting executive general manager David Reynolds. "One company I'm aware of allows its staff to take their long service leave at seven years instead of 10 and still get the same benefits,'' Reynolds says.
As more women and older workers return to the workforce, companies are having to tailor their benefits programs to suit their needs. This includes offering tax-effective superannuation top-ups or providing subsidised childcare.
"I'm aware of one company that has actually underwritten 80 per cent of the places in a childcare centre in western Sydney because it's the only way they can attract staff,'' Reynolds says.
Companies are realising that offering more money is not the only way to attract quality staff, he says.
"The perks that are being offered by organisations now are taking into account people who have preferences other than just money,'' Reynolds says. "There are many people who do not want to work 60 hours a week, who do have a family and want to be accommodated.''
People often associate big money with increased working hours or having to put up with unfavourable conditions, such as working in remote locations, he says. St George Bank is one company that is thinking outside the square when it comes to employee benefits.
Last week it launched a program whereby employees can choose to receive 80 per cent of their salary for four years and then take the fifth year as a paid holiday. St George Bank analyst David Rickard recently took advantage of another initiative which allows him to sacrifice part of his salary in exchange for two weeks extra annual leave so he can take an overseas holiday.
"It was just a cost-effective way of taking a longer holiday without having to wait for my normal annual leave to accrue,'' Rickard says. "This way I could actually choose the length of holiday and how I paid for it. One of the benefits is that you are paid while you are on holidays. It just gives you choice and flexibility of when you want to take leave.''
Chandler Macleod's own Workplace Barometer survey found there was a discrepancy between what employers thought employees wanted and reality.
"The things employees thought were more important were flexibility of work hours, benefits and career development,'' Reynolds says. "Whereas I think the employers thought what was more important was money, prestige, the employment brand and those types of things.'' There were also benefits for employers who offer staff perks.
"I think if organisations are smart and are looking at those sorts of benefits that will allow them to attract highly motivated and skilled people they will end up having a more stable workforce, which in turn reduces turnover, increases productivity and hopefully profitability,'' he says.
Both skilled job seekers and valued staff members are in a very strong position to negotiate for increased benefits. "Organisations are being challenged and they are willing to adapt and accommodate people's needs because they don't want to lose them,'' Reynolds says.
It is important for employees and job seekers to be up front about what they want from their employer to determine whether the request will put them off. "If it does then you immediately know that it's not the organisation for you, but if you are being open about it and it's not an issue then you know you're on the pathway to a good relationship,'' he says.
Benefits on offer
The list of benefits being offered by companies these days is endless. However, Chandler Macleod executive general manager David Reynolds says employers want to see a return on their investment so it is important employees have a good reason for asking for any additional perks. Here's a list to get you thinking.
- Can your employer pay for any relevant education courses or give you extra leave for study?
- Parents might like the option to work from home one day a week or have flexible working hours to pick up or drop the children off at school.
- Can your employer offer a parking space or company car if you do a lot of driving in your role?
- If you are required to travel for work you could ask for an allowance for your spouse to travel with you.
- Benefits can also be as simple as a friendly workplace environment.
Taking advantage of company benefits
The only way employees are going to be able to fully take advantage of a company's benefits program is if they can negotiate well.
Negotiation and relationship building company CMA senior consultant Jon Schauder says the error people make is asking for one option, such as asking for leave, rather than sharing their interest, which is to look after their sick mother. Rather than demand -- express a need, a hope, an aspiration and make it a problem-solving session where the business can help you to find solutions, Schauder says. You may ask for help because you have had another child.
"The business might be able to help in ways that the employee had not thought about, from child care, to health insurance, to helping with financial planning,'' he says.
If the conversation goes poorly, it is time to start thinking whether the employer is the right fit.
By Henry Budd, The Daily Telegraph, August 4, 2007.
