Benefits, the entitlement mindset and going too far

Here is a hardliner, yet valid, take on the 'excessive' benefits being offered by today's corporates to its employees. A very interesting post written by Arvind Krishnan, CEO of The Fuller Life. 

Benefits, the entitlement mindset and going too far

The old contract between employer and employee is null and void. The new contract is still being framed. Managing this transition is part of all of our jobs.

Our parents worked under the salary-for-work construct. The average youth in today’s workforce works under the  (salary+incentive+lunch+pickup and drop+cola machine in office+emotional fulfilment+stock options)-for-work construct. Part of the reason for this switch is that expectations have risen on both sides of the table. Employees throw more of themselves into their jobs and companies expect more than just 8 hours work.

While the details of this relationship are still being worked out by each company to suit their own circumstances, there is  no doubt that the old equilibrium is done and dusted. 

In such a situation, i do think it is possible to go too far in trying to make the employee happy. Remuneration aside, i do believe that companies actively run the risk of going overboard without considering the following:

1. You can never remove a coffee machine from the canteen: Once a benefit is offered, there is usually a serious exit barrier in removing it. You certainly can’t do it without seeming to be heartless, needlessly frugal or petty. None of those are good wickets to bat on.
2. Our first responsibility is to the company, not the employee: Being extremely understanding about a leave of absence has to be tempered with the thought that one can harm the company by the person not being there  – and our fiduciary responsibility is to the company first.
3. Stay on the professional side of things, not the personal: It is in the company’s interest if the employee is healthy, so i can understand running a fitness program in the company. However, when a company offers counselling service for people who abuse alcohol or drugs (often when their policies are intolerant of these things), I think we are overstepping boundaries.
4. Offer nothing that can hurt the employee in the long-term: We should do all we can to help the employees do better. When companies offer employees a pile of junk food for free near the coffee machine, i wonder how it aids the cause. Also, free internet at home is fine if it is for a short-term crisis. But expecting the employee to log in every night after dinner is building a very damaging equation.

The above may sound very hardline, but I think that these are good business guidelines to work with. The flip side of this, given below, are norms for benefits to employees. We certainly follow these at The Fuller Life.

1. Do no harm: We seek to make the employer-employee construct long-term. So keep them healthy. It will pay dividends later.
2. Keep things professional: The employer-employee relationship is a business relationship. So, know the boundaries and draw them in hard lines.  That works both ways. Do not intrude on family/ weekend time. That includes expecting people to answer email on holidays and travelling  on weekends without any compensatory leave. 
3. Vary the benefits that you give employees: Do not get locked into the coffee machine syndrome. Give them different things at different points. It maintains your flexibility and the variety is usually appreciated.
4. Keep them engaged: This flows from the new construct (everything-for-work) that we now inhabit. We need to keep the employees  engaged such that they not only enjoy themselves, but bring more of themselves to work, the company will benefit. 
5. Nothing should be absolutely free: Offering a benefit for free is not the best path. Two reasons. Firstly, it is not fair for those who do not use the benefit (e.g. free counselling) and secondly, it devalues the benefit.  A better approach is to make the employees part-pay. 
6. The business should benefit: Whatever we offer to the employees has to have a business benefit. If the advantage to the company is tough to identify,  you are better off axing it. Every employee engagement activity too should have a work goal e.g. the long service award (sent home) should make the family appreciate one of their members working in the company (and therefore create an exit barrier).

These views are personal and i do realise that this column will not win me any popularity contests anytime soon. But I do believe that these are norms to follow in the future.

(You can reach the author on arvind@TheFullerLife.com)