In the business world there is a constant challenge to reduce costs and work in more efficient ways. Businesses often make the mistake of cutting back in areas that most affect how well appreciated an employee feels by the business. For example, benefits and various perks are often the first area that HR will look at when they are looking for ways to reduce costs.
However, if that approach then leads to a mass exodus of the top employees, or demotivates remaining employees, it can end up costing the business more as a result. Recruitment costs are often a needless expense if you are replacing a good employee that you could have kept on if you had made them feel more appreciated.
Getting the balance right between keeping costs low and making your employees feel valued is difficult to master but is highly significant in the overall success of the business. If you start cutting corners with employee perks then your star performers could easily get their heads turned by rival companies that are happy to offer them a better package. It is not just salary and bonuses you need to take into consideration, even things that you think are insignificant can be important in showing an employee that they are valued.
Your approach will no doubt vary depending on the type of company that you run and the level of employees you are dealing with. So it might be fine to ensure that your executives are provided with a DCA car service to get them to and from important meetings but unrealistic to do that for all employees. A travel policy might be in place to reduce costs but does that mean that you want your top performers spending hours on public transport to keep costs down? This could inevitably frustrate your employees, so you have to weigh up the pros and cons.
Another area that some companies try to keep costs down in is with the technology provided to employees. Again, providing slow or out-dated systems will demotivate employees and have a negative effect on productivity. Whilst technology might not seem like a perk, as it is a standard requirement, the type/spec of equipment you provide will impact how valued an employee feels. When someone starts a new job, what kind of impression are you giving when you provide them with the old laptop of their predecessor? They will not feel like they are a valued, important member of the team, so sometimes it pays off to spend more in situations like this.
Keeping employees happy should be a big priority at any business and keeping your top performers feeling appreciated will reduce the chances of them moving onto better employers. Whenever you are looking to review your budget and areas for cost savings, never underestimate the impact that it could have on employee satisfaction. When you consider that it costs around $3000-$5000 to recruit employees, you can see how important it is to keep your current employees happy.