Employee incentives have had a tumultuous few years. Before the pandemic, the lavish perks offered at some of the world’s largest tech companies were often spoken of with near-hushed reverence.
Besides ping pong, pool tables and pizza parties, these amenities included a free on-site gym for employees, nap pods, on-site childcare or nursing rooms and the ability to bring your dog to work.
But perhaps the most talked-about aspect was the full-service international cuisine options served at every meal in the tech giant’s cafeteria.
With a fridge stocked with drinks, a pantry packed with snacks, and free coffee for anyone wanting to grab a break from work, it was only natural for workers at companies like Meta and Google to eat like kings.
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Meta offered dry-cleaning benefits to its staff, Goldman Sachs provided free transportation to and from the office every day, Salesforce.com offered monthly paid time off to its engineers and technical staff, and most famously, the Capital One Center in Tysons, Virginia, has a mini-golf course on its roof.
As the pandemic spread, that began to change. In a remote work environment, many of the perks offered by tech companies were clearly used as incentives to get employees to come and stay in the office. After all, if you can eat breakfast, lunch, and dinner, go to the gym, and wash your clothes at work, the incentive to go home is not as strong.
A changing environment
As workforces dispersed, some perks began to disappear, while others were added to the roster: For example, according to Robert Half, 45% of companies began offering mental health resources and support during the COVID-19 crisis.
In 2022, as layoffs began to take effect and cost-cutting measures came to the forefront, the situation changed again and companies entered the era of “perks”: TikTok canceled its $45-a-day meal allowance, Meta announced a “year of efficiency,” eliminated on-the-job laundry, and reduced free food budgets.
Google has undergone a “multi-year” effort to cut costs, from spending cuts on cafeterias and in-office leisure activities like yoga and massage to how often people replace their laptops. Stationery has also taken a hit, with staplers and tape no longer available at printing stations.
Twitter made huge cuts, cutting fertility benefits by 50 percent, and Twilo cut health and book benefits.
What workers want
As a result, employees began to evaluate what they really wanted. In many cases, “nice to haves” like free coffee or gym memberships are now seen as just perks.
In an environment where workers are seeing wild fluctuations in inflation and rising prices, anything that contributes to profits becomes much more valuable.
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Tangible benefits such as annual bonuses tied to performance, employer-funded 401k contributions, stock options or equity plans, good health and dental insurance, and commuter benefits are what workers now want as part of their total compensation.
Benefits to support parents and carers are also a high priority, with language benefits becoming increasingly popular. Survey from PreplyThe survey found that 88% of U.S. workers said learning a foreign language has helped them in their career development, and a further 76% said learning a foreign language was important to their career prospects.
As AI becomes more prevalent in the workforce, reskilling and learning and development budgets will become valuable even for employees who don’t want to or can’t afford to further their education out of their own pocket.
Flexibility is also important. CIPD89% of employees consider flexible working to be the main motivator for being more productive at work, ahead of financial incentives (77%).
It may not be a monetary perk, but it can make a big difference in employee happiness. Giving employees the ability and choice to adjust their work schedules to fit other responsibilities can also help your business outcomes: according to the CIPD, this can increase revenue by 43%. It’s a win-win.
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