The Website and Blog of HR Author and Speaker Lori Kleiman

Perks That Count!

Coffee is a workplace "perk!"

Do you provide coffee in your office? If so – make sure your employees understand the value of this, and many other services during the workday they likely take for granted. According to a recent survey of Accounting Principals, employees spend an average of $1,109 on coffee each year. This translates to a real savings to the coffee drinkers in your office. Many organizations have removed or consider removing their coffee service – but is this an inexpensive way to show value and appreciation to your employees. While not everyone will drink the coffee, it is often a nice perk (no pun intended!) for all.

However, this and other small benefits are only valued if you remind employees they have value and exist. For many years, I have been a strong proponent of annual total compensation statements. This can be a simple one page document outlining everything you provide your employees in addition to their base compensation. If you are not familiar with the document, the Society for Human Resources Management has an excellent article on the topic.

Employees are not aware of the hidden costs of their employment which should be highlighted annually. Some common costs to include are:

  • 401(k) audit and administration
  • Workers Compensation
  • Cost of lunches/coffee etc. provided
  • Unemployment insurance
  • Pay for time that is not worked
  • And of course the big items of insurance and social security match

The statements do not have to be complex. A simple one page document listing the items is sufficient. The key is to have a “grand total” at the bottom that shows the employee their total package. Many insurance brokers and payroll systems have basic statements available as a part of your service agreement. If that is not available to your organization, use a simple mail merge in word with data from your payroll system.

Don’t assume your employees understand the full value of their package. Be clear each year with a statement that outlines what you provide, the full cost and your appreciation for a job well done!

Photo by Doug distributed under the following license