Compensation & PerksPerks

What to Avoid When it Comes to Offering Employee Perks?

Employees love Perks. They enjoy feeling valued and cherished by the organization they work for. However, if these employee perks are nothing more than a gimmick, they might have the opposite effect and make your staff doubt whether they are being compensated for their tireless efforts and hard work. Over the past 20 years, there has been a steady decline in employee work satisfaction, with pay and benefits being two of the main contributors. Benefits or perks are frequently the first things to go when employers want to save money and reduce expenses, even if they don’t inherently benefit the employee/employer relationship.

So even if offering employee perks make your employees feel happy and help you to retain your employees, you should think before offering any bonus. There are some perks which you shouldn’t provide. From unlimited vacation days to unhealthy snacks, some employee perks are simply gimmicks and won’t benefit the organization.

10 Employee Benefits That Don’t Work

Here is the list of 10 employee benefits that are ineffective and won’t give benefits. Companies should avoid these benefits and should focus on some effective employee perks.

1. Attendance Incentives 

In flexible and fluid organizations, attendance incentives are ineffective. Different people react differently to company structure. While some people can work continuously without taking a break, others can work while taking scheduled breaks. You can impose stronger regulations, such as mandating effective delegation of duties and requiring advance notice for multi-day leaves, if you’re concerned that vacation time would kill production. 

2. Unlimited Vacation Days as a Benefit

Although unlimited vacation days may seem like a terrific benefit, employees frequently use fewer vacation days when granted unlimited days off. Furthermore, regulations that allow for infinite vacation time are just hollow words. For instance, you will probably need to find a replacement if an employee informs you that they will take a month off to spend the summer in Europe. Also, unlimited vacation can cause productivity loss in your employees too. You can’t benefit from this perk. 

3. Unhealthy Free Snacks

You should keep the business thriving. Yes, there are occasions when unhealthy snacks may be desired, and whether or not staff members eat them is a good indicator of how stressed they are. But creating a 2 pm sugar rush addiction is neither beneficial to health nor productive. Additionally, it hinders the afternoon productivity of staff members. Instead of giving unhealthy snacks, try to provide some healthy things to eat. 

4. A Free Business Smartphone

Since the most recent smartphones are pricey, many firms provide their staff with free company smartphones, which in theory, is fantastic. However, an accessible business smartphone could give prospective employees the impression that they will always be on call or they can spend more time chatting. Nobody wants to spend their free time returning calls and responding to work-related SMS. Also, nowadays, everyone uses a smartphone, so giving a smartphone is not a good idea.  

5. Gym Subscriptions 

Not everyone needs or wants the gym as a bonus or incentive. Since it’s paid for, no one usually uses it; in fact, many people don’t use the gym while they pay for their own memberships. Instead, emphasize other health and wellness benefits that motivate people to lead healthier, more balanced lives. People today are searching for that. 

6. Too Much Flexibility

Being flexible at work is crucial if you want to give your staff members a sense of respect and appreciation. However, excessive flexibility might negatively affect individuals feeling like they are working around the clock due to changes in their availability. It’s crucial to remember that you shouldn’t count on responses all day if you grant these powers. 

7. Offer of Secure Employment 

The recruiters or hiring managers who offer long-term secure employment help the applicant to decide on a job. But in reality, no crystal ball can foster security. However, employers shouldn’t provide any candidate with a perk like long-term secure employment because no one knows how that employee will perform. 

8. Programs for Employee Discounts

Employee discount programs are ineffective since they focus on bringing in money for the business through partnerships. Rarely are there services that provide the best deals, and even less frequently are they what the staff members of the company want. The business can therefore claim to be providing a benefit, and it is the employee’s decision whether or not to take advantage of it. So this one is not even that effective and valuable for employees. 

9. Foosball Tables  

Many businesses choose to use contemporary offices with snack bars and foosball tables. The goal is to motivate the workers to feel more invested in their jobs. The outcome is pitiful since employees desire to experience a sense of meaning and enthusiasm in their work. A foosball table is another pointless expense if the organization’s leadership does not connect with a higher goal.

10. One Size Fits All

Many businesses recognize the value of strategies for an individual’s growth and development. This is fantastic in theory, but if businesses use “one size fits all” methods, they become just another pointless procedure and are unsuccessful. Establish a framework or development plan, teach leaders to be flexible and adaptable, and solicit feedback from the people you lead.

How to Identify Effective Employee Perks?

Employee perks cannot define a company’s culture but can help reinforce it. To identify an effective employee perk: you might ask, what is the company’s objective and purpose? Find out what extras and bonuses the staff would like to have. And because your company culture and personnel make-up may vary over time, incorporate it frequently in employee surveys. Don’t forget to include a communication strategy to inform staff members about the perks offered. 

1. Consider Employee’s Needs

It will be helpful to know what your staff needs in the workplace. You should discuss with your employees how they feel working and if there is anything you can improve in the workplace. And if you find anything you can improve or provide to make your employees happy, you can consider that a perk.

2. Thing About The Budget 

When you offer employee perks, you should also consider the company’s budget and financial status. You shouldn’t provide any perks which will cost a lot of money but instead of giving expensive bonuses, try to offer some decent and valuable perks, which will benefit your employees and the company too.

3. Think About Culture 

Employee perks shouldn’t affect the company’s culture in a wrong way. When you want to offer bonuses to an employee, think about how they can affect other employees.

How to Revoke a Perk Without Impacting Employee Retention/ Engagement?

It’s probably not something extraordinary like offering everyone free on-demand helicopter trips. Perhaps all you’re doing is removing a minor perk, like candy dishes scattered throughout the office. Whatever it is, one of the worst aspects of the job is taking away an employee perk. Some employees will be unhappy no matter what you do and how you do it. Thankfully, there are several tips you can take to at least lessen the outrage and keep employee engagement from suffering. When Management approaches you in the future to discuss removing employee benefits, keep these guidelines in mind:

1. Be Open-Minded 

One of the first questions that will cross employees’ minds when a perk is eliminated is, “Is the company in trouble?” After all, if not to raise money to handle a crisis, why else would you need to take away a benefit?

That might be the case. It could also not. Management might prefer to reallocate the money simply. Perhaps the advantage wasn’t used very often. In either case, provide employees with some transparency. Explain to them why this is occurring and why it’s a positive development overall. Provide employees with as much information about why they are losing a benefit as you can. Instead of feeding the suspicions, see it as a chance to build trust.

2. Get Your Managers 

You can influence a remarkable cultural shift and bring about change in an organization to the extent that managers are willing to do so. Managers are the individuals who have direct control over the personnel. The remainder of the workforce moves in lockstep with managers. That implies that you must first convince people to accept the message. Describe the reasons behind the perk’s termination and how the choice fits into the bigger picture. If necessary, use the executive team as leverage.

3. Offer an Alternative 

Sometimes a perk can be replaced by a similar one that costs less. You may provide staff discounts on other forms of transportation. You can consider providing unexpected nutritious treats like fresh fruit and granola bars instead of endless fruit snacks. Offering a workable substitute may not help them to calm themselves. However, it will demonstrate that the organization is still attempting to assist employees in meeting demands that the primary benefit helped to address. So if you’re revoking an employee perk, consider some other perks to offer.


Employers frequently advertise the variety of employee perks available to people working for their company to retain top talent in today’s fiercely competitive labor market. While some of these perks appeal to job seekers, others are less successful in luring new hires or keeping current ones. Some bonuses can be useful for both trustworthy employees and the employer. But some perks can make a massive loss for your company too. That’s why before offering any bonus, companies should consider all aspects and consequences of providing that perk, and if that perk is not beneficial, companies should avoid these perks.


1. What are the best employee benefits?

Some of the best employee benefits include the Employees’ Provident Fund, Employees’ State Insurance Scheme, statutory leaves, gratuities, and maternity leave. 

2. What is the difference between employee benefits and employee perks?

Benefits essentially cover costs that an employee would have to pay out of pocket, like health insurance, retirement savings, and daily commute transportation costs. On the other hand, perks are like extra rewards or non-wage compensation. 

3. What are the four significant types of employee benefits?

The four major types of employee benefits are medical, life, disability and retirement. 

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