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Perks that work
By Robert Burke


Keeping people happy is an increasingly tough trick. With unemployment at record lows, 'companies are trying just about anything' to retain employees, says Jay Doherty of the New York-based human-resources consulting firm William M. Mercer Inc. Not only are employees being pampered, they're getting more money, better benefits and help with personal problems such as child care and financial planning. Bosses once shunned such intervention. Retention 'is no longer a human resource issue, it's a business issue,' Doherty says.

Because technology companies face the tightest labor markets, they have been the most aggressive in devising ways to keep workers. Herndon-based Net2000 Communications, for example, puts top performers behind the wheel of luxury cars like a BMW323i or Z3. MicroStrategy, a Vienna-based data miner, goes a step further and has hosted all of its employees on Caribbean cruises.

Such perks are great for the employee, but do they make sense for the company? May be. Doherty says all companies - including technology firms - 'have to be careful they don't create a business model that's not profitable.' Don't throw money at workers who want to leave because pay raises don't always work. Perks and benefits can be effective, but they have to be custom-fit to the company and the business sector. Don't add new perks just because they seem like hot trends, he says. 'Too often there's a desperation sometimes to just try anything, and it's very expensive.' MicroStrategy, which reported lower earnings earlier this year, has been rethinking its cruises, for example.

Yet companies still face labor crunches that can really hurt. How do you keep workers? Start by making them feel they're part of a special place with a unique culture. 'We want to hire people that are totally aligned with our values,' says Tim Huval, general manager for South Dakota-based Gateway's 2,200-employee call center and manufacturing facility in Hampton. 'Honesty, efficiency, aggressiveness, respect, teamwork, caring, common sense and fun. Those are values that we live by.' Richmond-based Xperts also lives by the value system. Founder and CEO William Tyler pushes pairing quality of life with a sense of social responsibility.

Workers can designate which non-profit groups Xperts contributes to, for example. A strong culture makes it hard for people to leave, Tyler says. 'They don't have an urge to leave because they've found a home. They're happy.'

Notice this corporate culture stuff doesn't say much about shareholders or profit. It's a decidedly employee-centric approach. 'If you ask any of them, they're

all going to say, "Pay me more money." But that's not the truth,' Tyler says. 'What people are looking for is, "A place that's looking out for me.'"

What that means is helping employees cope with problems they face outside the office. 'That is where companies can build employee loyalty,' says Barbara Bailey of William M. Mercer's Richmond office. One popular tool is revamping leave policies to create 'flexible leave banks' that put all employee leave into a single category. Employees take time off when they need it and don't have to call it a sick day or vacation. 'Work-life issues are huge,' Bailey says. 'You make them feel as though they're not interested in looking elsewhere, because they're very happy with their life.'​

Answer 1

Nowadays technology companies face the tightest labor markets, they have been the most aggressive in devising ways to keep workers. Herndon-based Net2000 Communications, for example, puts top performers behind the wheel of luxury cars like a BMW323i or Z3. MicroStrategy, a Vienna-based data miner, goes a step further and has hosted all of its employees on Caribbean cruises.

Such perks are great for the employee, but do they make sense for the company? May be. Doherty says all companies - including technology firms - 'have to be careful they don't create a business model that's not profitable.'

'Too often there's a desperation sometimes to just try anything, and it's very expensive.' MicroStrategy, which reported lower earnings earlier this year, has been rethinking its cruises, for example.

Yet companies still face labor crunches that can really hurt. How do you keep workers? Start by making them feel they're part of a special place with a unique culture. 'We want to hire people that are totally aligned with our values,' says Tim Huval, general manager for South Dakota-based Gateway's 2,200-employee call center and manufacturing facility in Hampton. 'Honesty, efficiency, aggressiveness, respect, teamwork, caring, common sense and fun. Those are values that we live by.' Richmond-based Xperts also lives by the value system. Founder and CEO William Tyler pushes pairing quality of life with a sense of social responsibility.

Workers can designate which non-profit groups Xperts contributes to, for example. A strong culture makes it hard for people to leave, Tyler says. 'They don't have an urge to leave because they've found a home. They're happy.'

What that means is helping employees cope with problems they face outside the office. 'That is where companies can build employee loyalty,' says Barbara Bailey of William M. Mercer's Richmond office.