Improvements in Economy Ushers Back Employee Incentives
by: Andrew Schneider, July 5, 2011 2:07:00 am
A recent survey by insurance provider MetLife finds that nearly 40% of all employees hope to change jobs over the next year. Another study, this one by the Corporate Leadership Council, says that a quarter of top-performing employees plan to leave over the same period.
Global outplacement firm Challenger, Gray & Christmas finds that companies are responding by bringing back perks they’ve cut since 2007. In general, cash-based perks, such as bonuses and 401(k) matches, are the most effective in retaining top talent. But there’s a catch.
“Nice perks alone are not enough to instill worker loyalty. In other words, a company can’t make up for mistreating employees with a free gym membership.”
CEO John Challenger:
“But in companies where perks are an extension of a corporate culture that views its workers as partners and team members and not cogs in the machinery, employees are more likely to feel valued and engaged and happy.”
He says companies where morale bottomed out during recession may find it’s too late to avert an exodus, no matter what benefits they offer now.