I know I’m going to sound old, but—back in the day—employees received a paycheck and two weeks’ vacation. Maybe some healthcare. Usually some retirement, too. But that’s it.
Today, however, things are different. The economy is strong and U.S. unemployment is very low. Good workers are at a premium and small businesses can be at a disadvantage when competing against larger companies with deeper pockets. Not only that, but also there’s a new generation of workers—the millennials—who not only comprise about half of the U.S. workforce, but also appear to have different values and priorities when it comes to balancing work and personal lives. This generation, in survey after survey, wants more flexibility, mobility, independence and time off—in many cases, in lieu of higher compensation.
So, what kinds of benefits should an employer provide that will not only attract good workers but also keep their existing ones happy and motivated? Yes, the usual ones mentioned above are important. But paid time off (PTO) perks are the most attractive and I’ve seen a few ridiculous (and not so ridiculous) plans that companies are offering. Want some examples?
1. Pawternity
A handful of companies have taken maternity and paternity benefits for new parents to such an extreme (Netflix, for example, offers a year off), that you wonder where else is there to go? Oh, right. To the dogs. There’s no other way to describe this than to let it speak for itself: paid time off when you get a new puppy. I know…right?
But this perk has become increasingly popular, particularly with companies that employ dog-lovers. I will admit that getting and then house-training a new puppy can be exhausting, if not a little messy. So why not give your employees a few days away from the job to bond with their new dogs, so that they can return to the office without worrying that when they get home they’ll find a few unexpected presents waiting for them? “We offer maternity and paternity leave and a pet is just another member of the family,” a recruiter for data platform provider Mparticle told Business Insider. “We don’t discriminate just because they aren’t human.”
2. Unsick Days
Firms like Zocdoc, Foursquare, and Greenhouse have joined with others to start a campaign called the Unsick Day that encourages companies to offer a day off for sickness—even when the employee isn’t sick.
The objective is to encourage workers to visit their physicians and dentists for scheduled checkups in order to avoid potential sick days in the future. It sounds a little ridiculous but, then again, we all have busy schedules and many of us prioritize other things than “planning” to be sick, or scheduling regular maintenance visits. And who knows? The right preventative care may save on future health costs as well.
3. Unlimited Vacation Days
Tech companies from GitHub to LinkedIn (and even accounting firms like Grant Thornton) offer unlimited vacation plans (and I’m curious how the accountants at Grant Thornton figure out their vacation liability at the end of the year with this kind of perk).
The benefit has raised eyebrows, and most of the companies I work with laugh at the thought. A growing number of companies are reconsidering the policy because it’s actually making their employees more stressed about how much and when to take their time off. So tread down the unlimited vacation road carefully—it may sound a little too good to be true, mostly because it is.
4. Days Off for Charity
This…is not a ridiculous perk. In fact, many millennials say that they prefer working for a company that is socially conscious and that gives back to their community.
So what better way to demonstrate this than to offer your employees a day or two off to spend working with a charity of their choice? Salesforce.com gives up to six days every year to employees for charitable work and also donates $1,000 to a charity of their choice. I’m not saying your company has to go to such extremes, but it’s not a bad idea, and can certainly differentiate you from the competitor down the street when you’re recruiting workers.
5. Sabbaticals
Also not a ridiculous perk.
Many firms are offering employees up to three months of paid time off every five years or so to do something completely unrelated to work. Avoiding burnout, putting things into perspective, and living a fuller life can make for a better person and a more productive employee. Once you’ve found someone who’s not only good but also is committed to your business, you should consider offering this type of perk to keep them fresh, happy and loyal.
Are these all ridiculous PTO perks? A few—I believe—are a little over the top. C’mon…pawternity?
But, in the end, giving your employees flexibility, balance, and time to enjoy their lives and their families will mean that they are more inclined to stay with your firm and work harder toward your objectives. Happiness really can mean profitability, and if offering a few extra days off a year is what it takes to achieve that goal, then bring on the puppies!
View Comments (48)
Guess I'm just too old school. To my way of thinking, one receives a day's pay for a day's work. The cost of excessive freebies must be picked up by someone and that someone is the customer. Perhaps tech giants and financial institutions can jack their charges to the hilt so as to cover such luxuries. Government can just keep raising the tax bar on us so as to provide ridiculous legacy perks, but at some point, one has to ask, "Where does it all end?" When is enough, enough? Millennials might want more flexibility, more time off...great stuff, if you can get it. From where I sit, it appears that the real problem is that millennials are accustomed to getting what they want. Whether its in the best interest of the employer or those the employer serves, to them, is irrelevant. Again, I'm old school, but I was taught that one doesn't always get to have things their way. There are hard realities everyone must face when dealing with the real world. Sorry, but most of these ideas sound extremely pie-in-the-sky to me and would never fly in the service industry in which I am engaged.
Hi. I, too, enjoy these articles as they allow us to see what other businesses are doing that work (or don't work).
We, too, are a small business so we work on compensations and "adjustments" that fit the employee. I have two worker that have the "commute from h-e-double hockey sticks", so when I see on the app that they are stuck in traffic, I will still show them in at opening time.
We also give our folks time to take care of personal business w/o them having to dip into personal time off. Of course, this doesn't happen everyday, but if their child is sick or has to leave school early, we will work with them.
Also, which I'm sure most others do too, when we receive a bonus from our co's, we share it with our office folks on down to data entry. Without ALL of them, we don't function.
These aren't ground shaking steps, but we really don't have a turnover of employees, so the love runs deep
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Part-timers: I suggest that you include them in on company picnics, Friday lunches or any activity that make them feel part of the company.
I would like to see an article published which discusses two main topics:
2. Non-financial compensation elements that work for privately owned small business.
Comment: Most of the suggestions in this article may be considered for companies with substantially deeper pockets, but not for Mom-and-Pop types of operations. We are challenged to offer even a small stipend towards health insurance, because unfortunately, providing health care as a benefit is unaffordable.
2. I would be very interested in compensation and incentive strategies aimed at part timers. Our business needs the flexibility to adjust workforce utilization on a constant basis. Hence the majority of our employees are not full time. They are however, qualified and trained ($$$) and we want to minimize turnover. Pay is relatively competitive. Other ideas would be welcomed.
Thank you for these great suggestions! We will certainly take these into account when writing new articles.
As a GenXer at 54 years old, with a millennial 26 year old, I must say that the behavior and/or attitude of any millennial was taught and instilled in them by the GenXer parent that raised them.
I appreciate everyone's feedback and the diversity in responses. It always help to see what other people are doing that works, doesn't work and may need to be tweaked. I think that in a well blended company of generations that this could work but I will leave that for someone at a well blended company to provide feedback.
Just for some of the Millennials who responded. GenXers and late Boomers also suffered through paying off their student loans. And most have suffered through at a rate of 8.25% or higher. Some are just finishing paying off that debt and some are still going.The cost of higher education is not a generational problem. Also the fact that women typically make less than men makes the problem a heavier burden on women. Considering that women do not get to go to school for a reduced rate.
I work for wonderful employers and being old fashion I believe all we achieve must be earned. In 2018 during a 3-week medical scare, my boss took the time to come see me in the hospital and his uplifting encouragement to ensure I was not concerned about my pay while recovering, and, the willingness to allow me to slowly get back into work along with openness to allow others to help me in the process, left me eternally grateful beyond words.
I have always been a loyal employee anywhere I worked but this employers' kindness increased my loyalty to a much higher level. I feel greatly privileged, blessed and take very seriously the great responsibility of the privilege. To God be the Glory for the wonderful employers that time the time to recognize the value in their employees. I will say that anything without some border, such as unlimited vacation is extreme and can cause complications if not properly managed. It is important to be accountable, responsible and wise in decision making in business and otherwise.
We have been testing the unlimited vacation for the past three quarters. Having a company of Millennials, it is not floating the same way as if the company were an even mix of Boomers, Gen-Xers and Millennials. We have been finding that people are taking off more time than working. Sometimes people are leaving for a month at a time, working random hours that do not align with normal business hours, etc. At times stifling business.
Things to consider if developing a program like this.
Thank you for your insights Anne!
These perks sound wonderful....but not in the working world. Some small business cannot afford to allow people that much paid time off. Maturity leave..sorry I don't agree with giving new mothers/fathers that much time off, not do I agree with paid time off. Seems to me you need to choose your priorities. I was taught if you want something you work for it. Seems some generations want everything handed to them.
I am a millennial and do the HR for my company. I have explored several options and believe these do not work for small companies. I'm also really curious as to where these surveys are done. Because all of my friends that are my age, would rather have a higher pay than these "perks" due to our student loan debt. I work 60 hour weeks and do my best not to do any work over the weekend. People in other generations, also need to realize that Gen Z's have hit the workforce and are pushing for these things, because a lot of them don't have the extreme student loan debt that us older millennials have, since their parents have been able able to pay for it.
Some ideas for small companies when it comes to PTO would be to add a birthday PTO day. This doesn't come out of your PTO bank and you can use it any day of the month your birthday falls on.
I work for a fin-tech company, so some holidays are difficult to give everyone off, due to bank holiday expectations. Also, expectations of immediate satisfaction of having a program fixed. So I am working on having "floating" holidays. This is when you know someone worked on a holiday (the company is salary and exempt, so overtime is not a problem), so they are able to take a day off and not come out of their PTO bank. Also, these cannot be accumulated to be rolled over to the next year.
There are a lot better PTO options, for businesses, especially smaller ones. Do some research, there is a ton of information out there and it's not too difficult to get it to fit to your company's needs/ wants/ style. I also do agree paw-ternity is a little silly. I also don't have kids, don't plan to have my own kids, and love my pets. Just saying.