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Recession-Friendly Employee Perks

Tags: Incentive, Employee, Brewery, Sales Force Management, Sales, Carlos Bergfeld, Princess Calabrese, Perks, Employee Rewards, Incentives, Recession, Downturn

During a slow economy, most companies are looking for places to cut spending. It’s tempting to start with employee perks and rewards — the word “perk” itself implies an unnecessary extra. But your employees are your most important asset, and keeping them happy is never more important than when layoffs and budgets cuts have made work a challenge. Here are three creative ways to keep rewards in your budget.

1. Give Gifts That Mean Something

For those familiar with Fat Tire, New Belgium Brewery’s flagship ale, the Fort Collins, Colorado-based brewery’s most unique benefit shouldn’t come as a surprise: Employees receive a custom bicycle for their one-year anniversaries. Founder Jeff Lebesch started the brewery after a bicycle tour through Belgium, and the brewery has encouraged a culture of cycling enthusiasm since. “It’s a very tactile, tangible event when you receive your bike,” says New Belgium media director Bryan Simpson. The one-year anniversary gift of a custom 1- or 3-speed cruiser bike — from popular bike makers like Electra, Spot, and Felt — is accompanied by a celebration, which Simpson says is almost like an initiation into a tribe, as all employees also become part owners after a year’s time. The brewery provides ample bike parking and on-site showers to encourage workers to commute with their gifts, and many do, Simpson says, making the award a vital employee benefit. “It’s a couple hundred dollars for the bike, but it means so much more,” he says.

2. When You Can’t Give Money, Give Time

Running into an employee who called in sick — or seeing incriminating photos of them on Facebook — isn’t just uncomfortable: it can jeopardize a career and increase office tension. To avoid forcing employees to use fake excuses to get a free day, Los Angeles-based public relations firm JS Communications recently gave its employees two free “I Don’t Want to Get Out of Bed” days. “You don’t have to worry about seeing your boss later in the day,” says Alissa Pinck, general manager and vice president of JS ’s New York office. “The day is yours, and you can do whatever you want with it.” Whether it’s relationship troubles, bad weather, or a day where getting out of bed just isn’t happening, JS2’s employees have readily accepted their two extra days per year, Pinck says, which can be used on any day when an employee doesn’t have a meeting or conference call scheduled. “At first people were kind of like, ‘What’s the catch?’“ she says. “But since then, people have been taking them, and they love them.”

3. Make Incentives Memorable and Incremental

Studies show that cash incentives don’t stick in an employee’s mind: Most folks use the money to pay bills and later forget where it went. To generate greater attachment to its incentives, the Harbor Court Hotel in San Francisco, part of the Kimpton Hotel chain, launched a program called “Kimpton Moments.” Whenever a customer reports that an employee provided exceptional customer service, managers give that employee a poker chip. The chips, worth two dollars each, can be redeemed by the end of the month for gift cards to places such as the Gap, Starbucks, Crate and Barrel, and Jamba Juice. Ross Lucas, supervisor at Harbor Court, says although the incentives are small (the gift carts are worth $10 to $25), they work because they’re incremental. Once employees earn a chip, they’re motivated to rack up even more, in order to beef up the amount of the award. “It motivates them to work towards something,” Lucas says. “Instead of providing excellent customer service and not getting anything in return, they work harder so they can get rewarded.”

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  •  
    rfmelendez@...08/25/08 Report as spam
    1

    RE: Recession-Friendly Employee Perks

    Great article!! I will try this and include Gas cards.
    Thank you.

  •  
    depsafetyguy08/30/08 Report as spam
    2

    RE: Recession-Friendly Employee Perks

    I want cash, not crappy gift cards. I get a gift card, I start polishing up my resume.

  •  
    bsnsimo09/07/08 Report as spam
    3

    RE: Recession-Friendly Employee Perks

    Why not treat them as if they are valuable to their company, because if you do they will become valuable to your company. The goal of managing people is to make the most effective use of them. The way to do this is to "lead" them to unleash their full potential of creativity, innovation, productivity, motivation and commitment on their work. Unfortunately, most managers use the traditional top-down command and control approach to managing people making those managers their own worst enemy. This occurs because top-down naturally demeans, disrespects, demotivates, and demoralizes employees "leading" them to treat their work, their customers, each other and their bosses with a similar level of disrespect. To better understand the right and wrong ways to manage people, please read the article "Leadership , Good or Bad" To learn more about a superior leadership strategy, please read these Leadership Articles Best regards, Ben Author "Leading People to be Highly Motivated and Committed"

  •  
    mike@...09/19/08 Report as spam
    4

    RE: Recession-Friendly Employee Perks

    "I want cash, not crappy gift cards. I get a
    gift card, I start polishing up my resume."

    I think you're right, depsafetyguy, cash is a
    reward and something that is used wisely in a
    well-run org. However what is absolutely true
    in my business is that the staff talk about and
    remember the 300€ x-box they got as a Christmas
    gift more than the 1000€ bonus at the last
    review.

  •  
    Joy Gomes09/22/08 Report as spam
    5

    RE: Recession-Friendly Employee Perks

    In today's economy, cash is the best reward.

  •  
    mfeyas10/04/08 Report as spam
    6

    RE: Recession-Friendly Employee Perks

    More than anything, employees want to be respected and thanked for their hard work. Managers, just say "thank you." Public recognition also doesn't hurt. On the flip side, measily $5 and $10 gift cards are almost insulting, when someone goes above and beyond the call of duty.

  •  
    trnoebel@...10/10/08 Report as spam
    7

    RE: Recession-Friendly Employee Perks

    I have to say I am surprised that some folks don't appreciate a simple “thank you” along with a small gift card. The point is to provide an immediate recognition of someone doing something right. I love it when someone catches me, or someone on my team, doing the right thing.

    As to larger cash rewards, frankly, that is what PERFORMANCE reviews and PERFORMANCE bonuses are all about. And yes, I meant to put performance in all caps. These smaller perks are just that – smaller perks.

    The intent of smaller perks like those mentioned here is to be an extra way to keep people smiling. It is not part of the person’s overall compensation. If you decide to "polish your resume" when your company says thank you, then maybe they are better off with you executing your exit strategy. This type of entitlement mentality is toxic to a company.

    If you think you are entitled to a bigger cash reward, does it occur to you that your company also then feels they are entitled to a bigger performance contribution from you?

    Let’s keep our eye on the ball here folks. Speaking of, this weekend I am going to go hit some of the golf balls that my firm gave to me as a small thank you. I’ll smile every time I reach into the cup and see the firm name right before I write down my score.

    Thanks McGuireWoods!

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