Perks You Can Afford

You don't necessarily need to pay more to keep good employees. A look at some unique employee benefits that can help you create an environment your workers won't want to leave.

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Employee Benefits

Want to hang on to good people? Try these creative employee benefits

Once a quarter, Mark Firmani closes his company for the day and takes his seven employees to the movies. It isn't that business is slow. Firmani, president of Firmani and Associates, a public-relations firm in Seattle, says that the $500,000 company has plenty of work. Just the same, four times a year the employees don their pagers, forward the phones to the voice-mail system, and take in a matinee.

Firmani claims he shuts down for the day to stay competitive--competitive in the market for good employees, that is. Seattle is, after all, Microsoft country, and the local economic boom has attracted some big-name public-relations players to the area. "There are agencies here that can charge big bucks and pay well above the national scale," says Firmani. "So I try to give this place a more enjoyable atmosphere." He has also found that when Microsoft and others raise the employee-benefits bar, he must follow their lead. Microsoft has company-subsidized cafeterias.So Firmani provides weekly catered lunches as well as daily supplies of soda, juice, and candy.

Your business may not be in Seattle, but you still face the same challenge as Firmani: making your company a more attractive place to work. With national unemployment extremely low, it's harder than ever to hold on to good employees. According to Matt Weinstein, author of Managing to Have Fun, these days companies, especially those in high-tech industries, almost have to treat their employees as volunteers. "Employees know they could work anywhere," says Weinstein. "So companies need to create an environment where people feel appreciated and recognized."

When it comes to employee retention, big companies can throw money at the problem. Chances are, you can't. That's why smart entrepreneurs are looking for low-cost ways to add zing to their benefits packages. Consider some of these possibilities:

Give flexibility. For some employees, flexible schedules can be a valued perk. David Kaufer, cofounder of Kaufer Miller Communications, a 27-person communications agency in the Seattle area, had an employee who was distressed about his long commute. Kaufer and the employee worked out a schedule that included four 10-hour workdays, with Fridays off, until the worker could find a closer residence. "He really appreciates the three hours a day he doesn't have to spend on I-5," says Kaufer. Kaufer also set another employee up with a home office, so she could move closer to her fiancÉ in southern Washington.

Even manufacturers can offer scheduling options, albeit within limits. At Autumn Harp, a 65-person manufacturer of skin-care products in Bristol, Vt., founder Kevin Harper gives many employees the option to work one day a week at home. About 10% of his 65 employees take him up on the offer. Harper admits, though, that for certain positions, working at home is not feasible. "Production workers can't bring their machine home," he explains.

What could cost less--and offer more flexibility--than a casual dress code? At Half Price Books, a $56-million chain of discount bookstores that has its headquarters in Dallas, president Sharon Anderson Wright just asks that her employees wear clothing that is clean, untorn, and free of offensive slogans or graphics. "After a big debate, we decided they had to wear shoes," she says. Firmani, too, is sartorially permissive. His PR professionals usually wear jeans, sometimes sweats. All Firmani requires is that employees be within 15 minutes of wearing something presentable in case a client drops by. "I keep a suit here at the office," says Firmani. "Not that I wear it much."

Share the perks of your business. Is there an aspect of your business that you could turn into an inexpensive employee benefit? Orval Madden, CEO of Hot Topic, a $44-million chain of music-related-apparel and -accessories stores based in Pomona, Calif., reimburses employees for tickets to rock concerts. The business tie-in? For Hot Topic, the shows provide important market research. To qualify for the reimbursement, employees must return with a report on the fashions that the band and the fans were wearing and with other merchandising ideas.

Why not let employees share in perks you provide to your clients? Rick Born, CEO of Born Information Services, a $36-million information-technology consulting firm headquartered in Minneapolis, already was paying to entertain customers at a skybox at a local arena. Now Born splits use of the skybox between clients and employees.

Do fun stuff. CEOs and employees alike need ways to blow off steam. David Kaufer periodically rents a bus and--without advance notice--takes his staff to a Mariners game or to play laser tag. (One caveat: keep mystery events nonthreatening. Firmani once took his staff on a surprise outing to go parasailing, a form of parachuting that involves being airlifted by a boat. He watched one evidently frightened staff member turn increasingly white awaiting his turn. "I felt horrible," says Firmani.)

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