Why Employee Perks Are So Popular | The Odyssey Online
Start writing a post
Adulting

Why Employee Perks Are So Popular

The reason behind the rapid rise in glitzy employee perks.

11
Why Employee Perks Are So Popular
The Institute for Faith, Work, and Economics

In the modern business world, employee perks are everywhere. The companies offering the glitziest perks make the news and the eccentric goodies nab the headlines, but all companies are shifting toward giving their employees more perks. Some companies even give enough so that their employees can literally live at work.

Why? What is driving the ubiquitous trend to offer better and better perks? Like many business trends, the roots of this new plant are spread out to many water sources.

The companies leading the perk trend are almost unanimously tech companies. Tech companies are competing for a small talent pool – the high value of computer engineering degrees signals a shortage of workers.

These tech companies have had to find alternate ways to compete for employees; salaries alone no longer cut it. Like colleges upgrading their facilities to attract stellar students, companies are offering snazzy perks to woo the most talented workers.

Perks can also be cost effective. Offering more paid time off to employees costs the company relatively little money compared to upping salaries by 10 percent. Further, businesses can use their leverage to garner employee perks for relatively little cost.

A third origin of the perk craze could lie in employee demand. Millennials are filling the workforce and the generation notoriously values experience over stuff. Perks provide work experiences that salaries cannot. Further, perks are a major consideration when choosing a job for 60% of workers and 80% of workers say they’d prefer more perks to raises.

Are these perks a fair way to compensate workers? Famed economist Milton Friedman condemned “corporate social responsibility,” claiming it was nothing more than companies stealing the rights of shareholders to use profits in ways they thought best. Similarly, Friedman’s argument could apply here. Offering perks instead of higher wages is merely robbing employees of their spending freedom.

A further parallel could be drawn with poverty alleviation. Though it is hotly debated, some research shows that unconditional cash transfers (UCT’s) (giving the poor money with “no strings attached”) are more effective in reducing poverty than the classic conditional cash transfers (CCT’s), which give money to “in-kind” programs like food stamps. Perks are like CCT’s while pay raises function like UCT’s.

Glassdoor does find that UCT-type perks like vacation time and bonuses are generally the most valued, but glitzy perks still persist.

Ultimately, however, perks seem to matter little in the long run. What makes employees most happy is positive company culture, good relationships with bosses and career opportunities.

Company culture is significant. It leaves an impression far deeper than money can. This is where perks’ true value lies. Perks can inform company culture like money can’t. Perks build community, foster warm sentiments and make memories. Paychecks don’t. Companies are realizing that office culture matters and are pouring on the perks to show it.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Featured

15 Mind-Bending Riddles

Hopefully they will make you laugh.

193926
 Ilistrated image of the planet and images of questions
StableDiffusion

I've been super busy lately with school work, studying, etc. Besides the fact that I do nothing but AP chemistry and AP economics, I constantly think of stupid questions that are almost impossible to answer. So, maybe you could answer them for me, and if not then we can both wonder what the answers to these 15 questions could be.

Keep Reading...Show less
Entertainment

Most Epic Aurora Borealis Photos: October 2024

As if May wasn't enough, a truly spectacular Northern Lights show lit up the sky on Oct. 10, 2024

17097
stunning aurora borealis display over a forest of trees and lake
StableDiffusion

From sea to shining sea, the United States was uniquely positioned for an incredible Aurora Borealis display on Thursday, Oct. 10, 2024, going into Friday, Oct. 11.

It was the second time this year after an historic geomagnetic storm in May 2024. Those Northern Lights were visible in Europe and North America, just like this latest rendition.

Keep Reading...Show less
 silhouette of a woman on the beach at sunrise
StableDiffusion

Content warning: This article contains descriptions of suicide/suicidal thoughts.

When you are feeling down, please know that there are many reasons to keep living.

Keep Reading...Show less
Relationships

Power of Love Letters

I don't think I say it enough...

459479
Illistrated image of a letter with 2 red hearts
StableDiffusion

To My Loving Boyfriend,

  • Thank you for all that you do for me
  • Thank you for working through disagreements with me
  • Thank you for always supporting me
  • I appreciate you more than words can express
  • You have helped me grow and become a better person
  • I can't wait to see where life takes us next
  • I promise to cherish every moment with you
  • Thank you for being my best friend and confidante
  • I love you and everything you do

To start off, here's something I don't say nearly enough: thank you. Thank you, thank you, thank you from the bottom of my heart. You do so much for me that I can't even put into words how much I appreciate everything you do - and have done - for me over the course of our relationship so far. While every couple has their fair share of tiffs and disagreements, thank you for getting through all of them with me and making us a better couple at the other end. With any argument, we don't just throw in the towel and say we're done, but we work towards a solution that puts us in a greater place each day. Thank you for always working with me and never giving up on us.

Keep Reading...Show less
Lifestyle

11 Signs You Grew Up In Hauppauge, NY

Because no one ever really leaves.

27526
Map of Hauppauge, New York
Google

Ah, yes, good old Hauppauge. We are that town in the dead center of Long Island that barely anyone knows how to pronounce unless they're from the town itself or live in a nearby area. Hauppauge is home to people of all kinds. We always have new families joining the community but honestly, the majority of the town is filled with people who never leave (high school alumni) and elders who have raised their kids here. Around the town, there are some just some landmarks and places that only the people of Hauppauge will ever understand the importance or even the annoyance of.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments