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August 2005
Inexpensive workplace perks are making a comeback to lure talent 
Although creative workplace perks are relatively rare since the dot-com bust put an end to pool tables in the lunch room, some companies are turning to low-cost perks to help lure talent - knowing they can't afford to spend more on already-expensive medical insurance and other benefits.
Whether it's bringing a pet to work on designated days, paying a quarter for a soft drink from the office vending machine, having your car's oil changed in the company parking lot or even being reimbursed for tuition, midsized companies are creating a recruitment buzz with these low-cost, yet highly visible, perks.
Before offering these types of perks, however, human resources professionals say your company must have a "ticket to play" in the employee benefits arena by already offering:
- Paid time off
- Health benefits
- Career management
- Programs to address workplace stress
With these benefit pillars in place, marketing all aspects of your company's benefits package becomes the next crucial element to attracting and retaining employees.
"Companies don't just talk salary anymore. It's a total compensation package," says one human resources professional.
Touting programs that promote wellness
To promote the perks they offer, some companies have been loading their Web sites with information that describes their benefits that promote wellness.
Many lifestyle programs are not very expensive if support is telephone-based rather than in-patient, and return on investment can be quite high. If your employee kicks a smoking habit or begins to exercise, he's likely to be a healthier employee who spends less on medical treatment and misses less work because of illness.
Smoking-cessation and weight-loss programs, or even concierge services to help reduce employee stress, also soften the blow to employees at companies that have raised health premiums or launched health care spending accounts in which employees are responsible for contributing more toward their health care costs.
Because companies increasingly recognize a need to move beyond incremental methods to control health care costs by consumer-driven plans, many try to influence employee behavior through on-site health programs and education. It has become popular to bring yoga, tai-chi or Pilates instructors to conduct weekly lunch-hour classes. Lunch-hour walking programs are also popular. Walking programs cost nothing because there are enthusiastic employees willing to recruit and lead colleagues.
A simple initiative with appeal in northern climates is "summer hours," when workers add an extra hour to the first four days of the week and are then able to have Friday afternoon off to enjoy the brief summers.
Human resources professionals say such flexible scheduling should go even further so it's tailored for each employee - when possible - to get the work done. Younger workers are insisting on work-life balance that fits their situation, and older workers like flexible scheduling so they can more easily help aging parents. Human resources professionals say there is no indication that productivity falls with flexible scheduling.
Wide-ranging inexpensive perks
Patricia Hamm, executive vice president of human resources for Minnesota-based Petters Group Worldwide, says the company tries to bring services to its employees at no charge.
A dry-cleaning service is happy to visit the company's main office daily. It costs Petters nothing, because dry-cleaning services covet this steady business. Petters also has arranged for an oil-change service that sets up in the company parking lot. Employees pay for the service. Everyone benefits, because employees aren't using lunch hours, evenings or even company time for oil changes, and it's one less thing on an employee's mind.
Although emergency backup child care and elder care does carry some expense, many companies are offering this on a co-pay basis. If an employee's regular provider is ill or on vacation, they have the option of using the company's provider 12 days a year. Employees pay $10 to $15 per day. The company contracts to pick up the remainder of the cost, usually about $25. Not only does it send the message that your company cares about family life, it also helps eliminate missed work days due to child-care issues.
Hamm says Petters got creative when it learned many employees would benefit from massage therapy at work. The company offers free 30 minute massages to employees (employees may buy extra time if desired) and pays a fee to their in-house therapists that is less than the employees could receive elsewhere. The upside to the employees is not only helping to manage stress but a "feel good" attitude about the company.
Managers at some companies have elected to let their vending machines dispense a soft drink for a quarter. They contract with the vendor and absorb the difference. It's a small item, but a highly visible one.
Hamm also says for $250 to $1,000, businesses that don't receive seminars as part of their employee assistance package can bring in local speakers to discuss workplace topics such as gender communication differences, workplace politics, finances and coping with change. Most cities have a wealth of experts who will visit companies to discuss such topics. If you choose a relevant topic - how to better manage your personal finances, for example - you're also sending the message that you care.
Some companies might also allow employees to trade unused sick days for vacation days, although more companies are moving to the simple approach of general paid time off. Instead of offering 12 sick days and two weeks of vacation to new employees, more companies are offering a total of four weeks of paid time off, which is actually two fewer days than the standard.
The benefits of visible benefits
Certain benefit offerings have great curb appeal to prospective employees - and might be quite expensive - but some companies fail to understand that only a very small percentage of workers will take advantage of the programs, even if a particular benefit had considerable allure during the recruiting process.
Tuition reimbursement can be an expensive benefit for companies, but most employees don't use it. Human resources professionals claim participation is considered high if 10 percent of a company's employees use this benefit.
More companies are also automatically enrolling new hires in the company 401(k) plan, unless new employees choose to opt out.
Regardless of the benefits a company offers, human resources experts note it's important to remember:
- There's little new under the sun. Even bring-a-pet-to-work programs are considered mainstream.
- If you add a new benefits component, make sure you can implement it, and be sure to communicate it to employees.
- It's helpful to provide an annual chart depicting employees' total compensation package so they understand that what the company pays them goes beyond salary.
- Employees don't leave companies, they leave managers. Benefits don't keep an employee at a company. Employees are retained through good relationships with supervisors.
Published June 2005 RSM McGladrey's Advantage Electronic Newsletter Periodically modifying your strategic plan can yield long-term success
How long would it take to find a copy of your company's strategic business plan? Your answer may tell how well that plan is being used.
Despite the best intentions and the time that goes into crafting a strategic business plan, experts say it tends to be underused. A true working document can help an organization focus on important issues, maintain management consensus and adapt to marketplace shifts.
Typically, a strategic business plan is the blueprint that helps bring an organization's vision to life over a three- to five-year period.
While the contents may vary depending on the needs of the organization, most strategic plans include the following categories:
- Market and competitor analysis. This section provides an opportunity to better understand the current state of your industry, analyze key business issues, define target customer groups and demographic trends, identify new markets to be tapped, and segment marketing strategies to existing and potential customers.
- Environmental analysis. This section evaluates the external environment in which your business operates. Most businesses have little, if any, influence or control over economic, demographic or political trends. Understanding the environment and making informed strategic assumptions will allow you to develop a plan that incorporates these factors.
- Mission statement. By definition, your organization's mission should not change from year to year. However, an annual review allows you to either reaffirm the mission or assess possible future challenges. Significant internal and external changes could, in fact, alter an organization's mission.
- Assessment of critical risks and problems. This section should review the most critical risks facing your business in the near term, such as competitive pricing pressures, unmet sales projections, unanticipated costs or difficulties in finding qualified staff. Balance this assessment with a series of strategies for addressing the identified challenges.
- Major strategic initiatives. A major outcome of the strategic plan is a well-defined understanding of major strategic initiatives in which your business will invest. These could include major product development, targeted research and development, or people-development initiatives. This step allows you to compare how well your company's significant projects mesh with overall business strategy.
Though these steps give the strategic business plan a strong start, remember that an effective planning tool must stay flexible to meet a changing business landscape. For example, an initial industry analysis may be good for several years in a stable field, but the rise and fall of competitors requires constant attention. Ideally, experts say, it's important to revisit the business plan quarterly - or at least every six to 12 months - to validate original assumptions, chart progress made against goals and ensure that budget projections for key initiatives are on track. Since these indicators are vital to the health of your business, a regular business plan checkup can help your company identify and guard against unforeseen market or competitive afflictions.
Who should be involved in the planning session?
Since this business tool is most effective if it focuses on strategic, big-picture issues rather than routine tactics the planning team should involve senior management from important line and staff functions in your business. The team should designate a lead sponsor, or "champion," who is responsible for plan development, maintenance and updates. Since the CEO is ultimately responsible for plan execution, experts say the sponsor role should go to another senior leader who is willing to facilitate the planning and review process. To ensure success, the chosen leader needs both the internal credibility and the clout to make it happen.
To make the process more objective, you may want to consider working with an external facilitator who can help steer the discussion and enable the CEO to participate rather than lead. A third party can also help suggest solutions to issues - such as sourcing or technology - that come up in review sessions, and keep key leaders updated on progress and obstacles.
Making plan modifications
When the planning group gathers to conduct a review of an existing strategic business plan, the management team should focus on the organization's overall direction. There are a number of steps to consider during this review process, including:
- Understanding, as a team, plan accomplishments and successes. This gives the group a chance to recognize what went right during the initial plan period.
- Reviewing assumptions on external factors. In this discussion, the plan's original assumptions about the external operating environment should be challenged and validated for accuracy. Depending on your organization, these could involve regulatory, industry, economy, technology or market issues. For example, a transportation-based business might need to reassess its business strategy in light of rising fuel prices that may not have been anticipated in the original strategic plan.
- Examining critical internal issues. This discussion should focus on important internal changes that have occurred since the business plan was developed. For instance, if a highly valued employee who was integral to the success of a scheduled product rollout has left the company, the plan should be modified to reflect how the business will successfully address the issue.
Post-meeting follow-up
Whether your organization has good habits when it comes to strategic planning or you've experienced a "pain point" that inspired another look at your strategic plan, follow-up is key to continued success.
- Schedule the next planning session before you leave this one, regardless if it's three, six or 12 months away. Make sure everyone on the planning team knows they are expected to participate in the next review and ask that they put it on their calendars now.
- Assign individual responsibility for tracking and recording key performance measures, and set expectations on the method and frequency of reporting.
- Market the planning process to your employees by sharing major goals and finding creative ways to help them get involved with bringing the strategies to life.
Strategy is even more important when competition for business heats up. It's important to take the time to ensure you're headed in the right direction.
Published August 2005 RSM McGladrey's Advantage Electronic Newsletter
Coffee Talk
Congratulations to Melissa Anderson who successfully passed the Certified Fraud Examiners exam and will be admitted to the Association of Certified Fraud Examiners.
Congratulations on the following promotions: Mandy Kerce to Technical Administrator; Tom Kelley to Sr. IT Administrator; Jeremy Jeffreys to Manager, Assurance & Advisory; Melissa Anderson to Manager, Assurance & Advisory; Brett Holt to Sr. Consultant, Assurance & Advisory; Julie Reeves to Sr. Consultant, Assurance & Advisory; Matt Capone to Sr. Consultant, Business Tax and Courtney Edmonson to Sr. Consultant, Government Contract Consulting.
Congratulations to Lisa and Jimmy Zibas on the birth of their daughter, Julia Charlotte. Julia weighed 6 lbs. 15 ozs., 19-1/2" long!
Congratulations to Valeria and Alex Molton on the birth of their son, Matthew. Matthew weighed 8 lbs. 2 ozs., 19" long!
Welcome to new employees - Leah Della Calce in the Audit group and Cindy Marks in Accounting Services. Related Information:
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