We’ve all heard of the companies on the leading edge that offer work perks most of us can only dream of. Things like a concierge, dry cleaning pickup and delivery, prepared meals you can take home for dinner, etc. I admit I have worked places with one or two unusual benefits such as adoption assistance, an interest free loan to purchase a computer, or a discount on a mortgage.
More and more companies are taking a chance on innovative benefits such as sabbaticals in an attempt to attract and retain their best employees. Though a generous one-size-fits-all package of health insurance, vacations and a 401(k) plan used to do the trick, prospective employees today are looking for perks that help them address work-life balance.
Some of these benefits such as paid sabbaticals, on-site child-care centers and long-term care, can come with a high price tag for employers. Others, such as concierge services and takeout meals, cost far less and have the added bonus for employers of keeping workers at their desks longer.
What seems to be clear is that benefits -- other than health-care coverage -- are getting richer. Here are a few which are gaining in popularity.
Sabbaticals
To keep employees committed or keep them from burning out, more companies are offering several-month unpaid sabbaticals or shorter paid charitable stints.
Set your own hours
Companies seem to be moving away from the 9-to-5 mentality. For example, about 70% of employees at the corporate headquarters for Best Buy set their own schedules, working just enough hours at whatever location they like to meet certain agreed-upon performance objectives. The program was developed after benefit managers kept hearing employees ask, "Can't you just trust me to do what I need to do to get the job done?” Though its people may not get much face time, productivity among these teams has jumped 33%, according to one report.
Companies are finding that employees are more productive when they're allowed to choose where and when they work.
On-site child care
Interestingly, only 4% of the companies recently surveyed by the Society for Human Resource Management offer child care at work. Probably because it's expensive, takes up a lot of company space and time, and can present liability problems. Still, for those who have it available, it gives parents more time to spend with their children during lunch hours, plus a quicker commute because they don't have to make a separate trip to drop off the kids.
Help caring for aging parents
At many companies, elder-care benefits are limited to referral services that help employees track down facilities or caregivers. But for others, like Prudential, provide its employees with 80 hours a year of subsidized backup care for their aging parents. Officials say this move is helping to prevent absenteeism and boost productivity among its workers who are often sandwiched between caring for their children and their parents.
Mortgage assistance
This benefit could be one of the most financially meaningful for an employee's future. Real estate companies, banks and many universities offer mortgage assistance to employees with reduced interest rates, discounted appraisal fees and help with other processing costs. Eligible employees at Fannie Mae can also obtain a loan to use toward their down payment and closing costs. As employment continues, a larger share of the loan principal is forgiven, according to company information.
Additional vacation time
The average number of vacation days is slowly edging up, rising from 10.9 annually in 2000 to 11.7 in 2006, according to Hewitt Associates. With health-care costs rising, many companies see increased vacation time as a good way to offset more-constrained medical coverage. Other companies allow employees to purchase additional vacation or are setting up Paid Time Office banks that put vacation power in the hands of workers. Employees are free to use the time for sick time, vacation days or holidays without explanation. This minimizes the “gee it’s a beautiful day out and I think I must be coming down with something” lies. Typically the number varies with job classification and years of service. If workers stay healthy, they wind up with more time to bask in the sun.
What's typical?
These benefits may not be realistic for most companies, but there are many benefits that prospective employees should reasonably expect to receive from a new employer. The following company benefits are offered by more than half of the 916 U.S. companies surveyed by Hewitt Associates. See how your company stacks up:
- Immediate eligibility for a health-care plan.
- A 401(k) plan in which the typical match is 50 cents for each $1 an employee contributes, up to a certain percentage of pay.
- Retirement eligibility at age 65 and health-care coverage to retirees.
- Access to a dental plan with 100% of exams covered and 80% coverage for dental work.
- Access to a vision plan separate from medical or dental coverage.
- A group life insurance plan that pays a year of salary or wages as a death benefit.
- Long-term-disability benefits with pay replacement of 60%.
- On average, 11.7 days of vacation after one year of service and 15.4 after five years of service.
- Eight to 12 paid holidays a year.
- Dependent-care spending accounts and access to a health savings account.
- Educational reimbursement up to a median of $5,000.
