Maureen Sellers remembers the dot-com era of the late 1990s in Seattle all too well. Doggie daycare. Weekly workplace massages. Employer-sponsored happy hours. Daily foosball tournaments. A fully-stocked kitchen. And stock options, which on paper, fueled her post-IPO fantasies of exotic vacations and full-time volunteer work.
"It was a smorgasbord of perks; jobs were plentiful and I was in demand," she recalled.
Sellers was forced to let go of the dot-com daydream in early 2000, but like many talented software engineers, landed solidly on her feet at another high-tech company soon after.
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She was pretty happy until the Great Recession hit in 2008, and she lost her job soon after. The search for a new position was long and scary. She's got one now, and she's grateful for it.
But that long list of perks? It's pretty much gone.
"The checks clear every month, which is great, and I do have health care and a couple of weeks' vacation, which is also great," Sellers said. "They subsidize the office coffee, which we have to pay a quarter a cup for, and we get donuts on Fridays sometimes. Does that count as a perk?"
Sellers, of course, isn't unique in her post-recession work experience.
U.S. employers are asking workers to do more with less as organizations struggle to compete in a global economy. In offices across America, everything from the company picnic to professional development opportunities are waning as employers seek to provide more practical benefits, such as wellness programs, as a way to cut costs and boost productivity.
"The non-traditional perks, such as tickets to sporting events or floating holidays have been on the decline for years," said Jackie Vu, an independent HR consultant in Jacksonville, Fla. "It's true that employee costs are growing while wages are not. But the same is true for employers. Their costs, particularly in the area of health care, have skyrocketed."
According to a recent survey of employee benefits by the Society for Human Resource Management, which explored 299 possible benefit offerings between 2009 and 2013:
- Take-your-kid-to-work day is down 10 percent since 2009.
- 10 percent fewer companies offer defined benefit pensions.
- Temporary relocation benefits have declined 13 percent.
- 12 percent fewer companies purchase employee tickets to sporting events.
- Long-term care coverage is down 8 percent.
- Floating holidays, or pre-approved paid days off, have declined by 7 percent.
- Reimbursement for personal phone calls while traveling is down 14 percent.
- 84 percent of companies offer life insurance, down from 92 percent in 2009.
- 33 percent offer a credit union, down from 42 percent.
- Just 9 percent provide adoption assistance, down from 16 percent.
- 38 percent offer cross-training in skills not directly related to the job, a decline from 55 percent.
But the decline in perks is not limited to rank-and-file employees.
SHRM research also indicates executive perks are on the decline, too. Just 23 percent of U.S. executives received signing bonuses, down from 31 percent in 2009; 9 percent of companies offer executive club memberships, a dip from 23 percent. Fewer executives (13 percent down from 20 percent) said they are reimbursed for dry-cleaning expenses while traveling.
But the news is not all bad. As organizations brace for PPACA implementation, many are working on incentives to help employees improve their overall health, helping them cut medical expense costs and absenteeism. Some related perks along those lines listed in the SHRM survey include:
- Perks for completing health and wellness programs have increased by 20 percent in the past five years.
- Insurance premium discounts for participating in a wellness program have increased by 9 percent.
- More employers (9 percent) provide on-site fitness classes, and more have health and lifestyle coaching available.
Benefits unrelated to health care that are on the rise include:
- A 10 percent spike in paid time off plans.
- Employee referral incentives.
- 14 percent more companies offer Roth 401ks, and more are providing investment and retirement guidance.
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