Employee turnover and retention are two of the most important aspects for entrepreneurs to consider as their business grows. No business will be sustainable if turnover rates are high enough to cause a “revolving door” of employees. As such, entrepreneurs and business leaders are always searching for the “secret sauce” — the blend of incentives and benefits that really motivates and retains quality employees. But not all benefits are equal, and some just don’t work at all.
So, which benefits that seem good may actually turn out to be the opposite? To help you decide if your incentives are truly motivating employees, or actually pushing them away, we asked experts from Forbes Coaches Council to share their thoughts on which employee benefits are gimmicky and why they don’t work.
1. Forced Fun
The idea of a "fun" corporate culture sounds great, doesn't it? But when get-togethers are mandatory it can actually lead to shaming. How dare you skip beer and pizza night, party pooper? If you're on a deadline, a diet or want to make family a priority, that needs to be OK too. Let people opt out and vote with their feet without judgment. - Janet Fouts, Tatu Digital Media
2. Ping Pong Tables And Beer
Millennials view work as an extension of who they are and want to work at a place making a positive impact in their community. Ping pong tables and beer won't motivate them to give their best to the job. Let them feel their work has purpose and is part of the greater good. Challenge them with bigger projects, talk about their career development and let them be a vital part of the organization. - Aaron Levy, Raise The Bar
3. Gift Cards That Miss The Mark
Sometimes it's nice to receive a gift card, but too often it ends up coming across as a thoughtless, rote gesture that misses the mark. It's thoughtless when you give the gift of a Starbucks card to someone who hates coffee, a card for a steakhouse to a vegetarian or a VISA card for a paltry amount. If a leader doesn't know what truly motivates their team, perhaps they should start there. - Maureen Orey, Workplace Learning & Performance Group
4. The Annual Turkey
One benefit that does not motivate and retain quality employees is the annual Thanksgiving turkey. I remember my father looking forward to receiving the annual turkey. However, the time when that was seen as a real perk has long passed. I recently did strategic planning work for a company that still gives the annual turkey. A few employees saw it as a nice gesture. Most, however, saw it as a waste. - Sherrin Ross Ingram, International Center for Strategic Planning
5. Team Building Without Motivation
One of the worst gimmicks is team building for team building’s sake, without the proper depth or motivation. If done right, team building can take businesses to the next level. If they are done in a half-hearted, lip-service fashion they become a gimmick that accomplishes nothing and wastes everyone’s time. - Jon Dwoskin, The Jon Dwoskin Experience
6. Cell Phone Reimbursement
The benefit of paying your cell phone bill can easily have an adverse effect. Along with that "benefit" is the expectation that you are always available, at least electronically. Employees need a break! They do not always need to be attached to their work email, as most of us are. - Donald Hatter, Donald Hatter Inc.
7. Travel Booking Services
Many large companies enlist the help of booking agencies to manage company travel and book flights, hotel rooms and rental cars. While this may be pitched as a benefit, it often creates headaches for the person doing the traveling. Flight and accommodation preferences are not taken into account and often your hands are tied when trying to rebook delayed flights or make any changes to reservations. - Elizabeth Pearson, Elizabeth Pearson Executive Coaching
8. Unlimited And No-Tracking Time Off
While well-intentioned, the current trend of employee time off without tracking and limits actually has the reverse effect. Having a structured time off policy with tracking encourages use, while the unintended consequence of the other approach is employees do not want to be seen as abusive and will then take less time off. This risks employee and organizational health. - Tom Cox, Oliver Group
9. Paid Time Off
Paid time off, also known as PTO, is when an employer pool an employee's vacation, sick and personal days into a single bucket. While it's intended to give employees flexibility in how they use their time off, it can be a de-motivator if they experience an extended illness. Time that would be used to recharge the batteries on vacation is sacrificed for unplanned recovery from the flu. - Scott Singer, Insider Career Strategies
10. Employee Of The Month
The employee benefit that is a gimmick that doesn’t work is the “Employee of the Month.” Although well intended, it limits the opportunity for positive reinforcement of desired behavior and performance — and often times is simply rotated among employees, which defeats the intent. Keep performance reinforcement specific, measurable and frequent. - Lisa Marie Platske, Upside Thinking, Inc.
11. Sales Incentives And Contests
Some sales teams continually run contests to create more results. Silly, really, as the top salespeople do not alter their activities at all since they always produce well above the requirement. The newer salespeople also do not alter activities, as they have no shot at winning. In the end, they appeal to a few and pay out trips and cash for no clear reason. - John Hittler, Evoking Genius
12. Flex Time
When putting together your job description, flex time is something people like, thinking it means they can come in when they want. We know it's not actually the case. You have a business to run which means people need to show up and work. Some flex time can be attractive but ultimately most employers don't let it get out of hand and that's where new hires get disappointed. Set hours instead. - Mitch Russo, Mindful Guidance, LLC
