Companies find that perks boost morale

Looking for an office morale booster? Perks often give employees a chance to feel good about working for the company.

By Patt Johnson
Des Moines Register The Salt Lake Tribune

And a happy work force generally translates into a consistent work force with reduced turnover. The cost of hiring, training and placing a new employee seems even harsher in times when many companies’ budgets are already being squeezed.

"This economy will inevitably turn around and when it does and the labor market becomes tighter, it’s more important than not to have these kinds of programs in place," said Jim DeVries, vice president of human resources at The Principal Financial Group Inc. "Perhaps employees will remember in the good times that we didn’t pull back, but added some things."

Recently, Principal added low-cost perks for workers, including free coffee and fountain drinks on Mondays, no meetings on Fridays, lunchtime entertainment during the summer months — including music on the plaza near the company’s downtown Des Moines offices — and basketball hoops and putting areas.

That’s in addition to benefits and perks already in place including subsidized health insurance, a 401(k) plan and a stock purchase plan that allows workers to buy Principal shares at 15 percent of the stock’s trading price, DeVries said.

The new perks were the result of an employee opinion survey, he said.

In addition to improved morale, workers getting perks tend to be more productive, according to studies. There’s also a correlation between employee morale and improved safety on the job and improved attendance, DeVries said.

"If you can win their hearts and minds, you have happy people that are more productive," he said.

Guide One Insurance in West Des Moines has long believed in perking up workers. The property and casualty insurance company has a host of services such as free lunches daily, free parking, free coffee and soft drinks, flexible hours, fitness-program reimbursement and free tickets to Adventureland or the State Fair each summer.

In addition, the company has a shop in which it sells stamps, cards and company merchandise. Workers also can get a massage, drop off dry cleaning or film for developing, or leave their car keys for an oil change, all for a charge.

It’s about making work an easy, fun place to be and helping balance work and home life, he said. The recession has not caused company officials to consider axing some of the perks, he said.

"The question has not been raised," he said. "You can’t nickel-and-dime people by asking them to pay for those things."

Companies should be more assertive in letting workers know the cost per employee of the benefits they offer, particularly in tough economic times, said Anthony Townsend, associate professor of business at Iowa State University.

© Copyright 2003, The Salt Lake Tribune.

http://www.sltrib.com/2003/Sep/09212003/business/94258.asp