The problem: offering traditional one-size-fits-all perks is so 2010.

Most organizations today offer their employee some sort of employee perks. From free cold brew to meditation rooms to on-site gyms, the number of perks has continued to grow over the last two decades. However, as the number of perks continue to increase in an organization, so do the three main problems they create:

 
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They're too expensive

The process of purchasing perks hasn’t evolved since perks first emerged, and so HR team members have to be involved picking, piloting, purchasing, managing, and maintaining a bunch of individual perks and vendor relationships themselves.

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They're not flexible

Traditional perks do not solve for every single employee, such as for those working remote. Over time, employees without access to flexibility are 2x as likely to report being dissatisfied at work, and half of employees say they would leave their company if offered a more flexible alternative.

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They're not inclusive

Because perks are often hand-selected by the organization – they, unfortunately, end up being generic in nature. Meaning, they’re often not what people would purchase given the money or funds themselves.

 
 
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This month, Sam purchased books, a gym membership, paid for a lunch with her team, and still has $20 remaining. Using a Lifestyle Spending Account, Sam is able to purchase the perks that are most meaningful to her life.

Sam now knows that her company encourages her to learn continuously, follow a healthy lifestyle, and nurture meaningful connections, which can have a tremendous impact in her loyalty, engagement, and satisfaction towards her current workplace.

 
 

How do Lifestyle Spending Accounts work?

Setting up a traditional perk program from scratch takes a series of steps and many months to do it right. A personalized-perk program like Lifestyle Spending Accounts (LSA) isn't too far off, but the process is much easier and in the end, employees are much happier.

These are the easy 5 steps to set up an Lifestyle Spending Account in your organization:

1) Identify your current and future EOY number of employees, and your total budget.

2) Determine how much you'd like to spend per employee per timeframe. Timeframes could be monthly, quarterly, semi-annually, annually, or a one-time basis.

3) Select categories for employees to spend in. These could align with company mission, values, goals, or be 100% open to give employees complete freedom over their perks. Some popular categories include: health & wellness, continuous learning, family, food, and travel. Some of of Compt’s perk stipends (categories in which employees can spend their perk money in) are the following:

 
 
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4) Set up your program. If you use a perk management software like Compt, this could take 15 minutes. If you're doing it manually - develop a spreadsheet/form where you can manually track the individual perk expenses, total amounts remaining within each time-frame, collect receipts, account for taxes, data for finance, and status of each perk expense.

5) Last, but not least, communicate it to the team. Draft up an email, or better yet, a page on your internal wiki to communicate the new perks plan you have implemented. Remember to explain the why, what, when, and how details. Lastly, supercharge your communication plan by creating a forum for people to provide feedback, whether it's a form for them to complete or holding a series of office-hours.

 
 

The time for personalized perks is now.

Back in 2010: 

Perks, when they first emerged over a decade ago, were considered “nice-to-haves” and employees’ expectations for them were low. Companies offered things that we today consider “fluffy” like snacks, free beer, ping pong tables, and massages. Also, because perks were considered a bonus by employees, there weren’t any formal processes or programs around them. There was often free beer in the fridge and snacks lying around, but it wasn’t a big deal when there weren’t.

Today in 2021: 

However, fast forward to today. The adoption of perks is growing, but the models of offering them haven’t kept up. Unlike many other industries, perks do not yet have any frameworks or processes defined for how to picking perks for a company. Most people are relying on prior knowledge, experience, and that of others.

Perks have transitioned into a “must-have” for every company as expectations are higher than ever. Employees are looking further than free snacks, and demanding more meaningful perks, such as workplace flexibility, wellness, student loan forgiveness, childcare, and continuous education. Perks are now a critical talent strategy that is becoming increasingly expensive.

Just think about how needs and preferences differ between generations, life stages, locations (remote vs in-office), health & wellness needs, etc.

Personalized perks offer diverse organizations the chance to better engage their employees and make them feel appreciated in the workplace.


That way, you are all winning together.

 
 

Compt is transforming the world of perks

Join the revolution to ensure your company attracts, engages, and retains top talent. Gain all the benefits of offering hyper-personalized perks with none of the added complexity.

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