In a recent article, I explored research showing that pay was often more important for employees than things like purpose, in the war for talent there is nonetheless a desire to offer non-monetary perks to try and attract the people they need.

While employee perks may seem to be somewhat ubiquitous, research from the Kellogg School of Management at Northwestern University suggests that more prestigious organizations are more likely to offer such perks. Indeed, for these firms, the offering of these perks is a key part of their prestige.

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The researchers wanted to explore what factors determine whether a company offers lavish perks to try and attract talent. Was it the preserve of those with the most financial clout or were other factors at play?

After all, for most firms, there is an expectation that by investing in employee perks, there will be some payback, either in terms of attracting, motivating, or retaining talent.

The researchers found that there were some interesting patterns among firms at the low end of the Fortune 500 and those just on the outside bursting to get in. They discovered that those who were on the outside looking in were more likely to invest in employee perks than those companies bobbing along at the bottom of the index.

Competing with their peers

The suggestion is that these companies are using employee perks as a way of competing for talent with seemingly higher-status rivals. In some ways, this should come as no real surprise, with glamorous firms often having an advantage in the labor market. Indeed, other studies have shown that people will generally be happy taking a lower salary in return for working for a high-status company.

So, if high status confers an advantage in the labor market, lower-status organizations have to find a way to compete, and many choose to do so with the array of perks they offer to employees.

The researchers explain that while we often focus heavily on how to win new customers and beat the competition in the marketplace, the war for talent is often just as intensely fought. The need to attract the best workers underpins everything a company does. The research sheds a new light on how lower-status firms can do this by offering perks that can help them to compete with higher-status rivals.

Desirable perks

So, which perks are most likely to move the needle for employees? Thankfully, it’s quite probable that lower-status firms won’t need to break the bank in order to provide perks that matter to employees.

The following are some that are regularly highly sought after:

• Flexible working – The Covid pandemic provided many workers with a glimpse of a more flexible way of working that they’re extremely reluctant to lose. While some employers are attempting to encourage people back into the office, the provision of flexible working remains a key perk for many of us.
• Cost-of-living support – The cost of living crisis is something that affects many employees, so the offer of direct support is likely to be something of real value. For instance, salary sacrifice schemes could be an option, with things like childcare savings or employee discounts on things like electronic devices or dining out popular options.
• Career progression – Many might not regard this as a perk, but the ability to progress one’s career is nonetheless something highly valued by employees. Indeed, various surveys have shown that a lack of personal development is a major reason for leaving an employer. So, providing not only professional development but also career advancement opportunities could be a win-win for employers.
• Support with commuting – If people are returning to the office, one of the main costs is that of actually getting there. Fuel costs have risen considerably over the past few years, so help either directly with those costs or with alternative means of transport would be highly sought after by employees.
• Health and wellbeing perks – An obvious consequence of the pandemic is the desire to live as healthily as possible, so support in doing this could also be a win-win for employers, especially as it’s well documented how physical and mental health boosts productivity and engagement. Offering things like gym discounts, massages, or mental health support is likely to be highly valued by employees.

Perks can undoubtedly help organizations gain a leg up on their more illustrious peers, and the above should provide some pointers on the perks that are most valued by employees.