One of the most successful perks programs that companies are implementing worldwide is remote work stipends. With the ongoing trend of remote work, providing help to employees to set up their home office, taking courses, and subsidizing healthy living can help increase productivity and employee satisfaction. Successful examples range from Airbnb’s $500 employee stipend for home office set-up to Buffer’s $2,500 annual retreat budget to allow employees to meet in person, build relationships, and bond over shared interests. Companies looking to implement a perks program should carefully research and allocate budget while keeping in mind the needs and preferences of their employees.
While some companies implement a stipend system to give employees more freedom to choose their own benefits, some stipends come with strings attached. For example, some companies stipulate that employees must use their stipend to pay for gym membership, in an effort to encourage healthy habits. But not all employees want to join a gym, or can even find one that fits their needs. We don’t stipulate that the stipend be spent on a gym membership. We have some employees who are parents and don’t have time for a gym. Instead, we stipulate that the money be spent on parental leave, or on an activity that helps the employee maintain their mental health or well-being.
My advice is always to go as bespoke as you can, essentially allowing your employees the greatest degree of control over their benefit choices which align directly with what they deem the most useful to them. For example, certain gym memberships, training days and health plans - these requirement or even 'want' for each of these is likely to vary between employees, so giving them the option not only shows that you want what's best for them, but also means that the chances of a perk or a stipend usage is greatly increased on a per-employee basis.
Director of Learning, Leadership Development, & Onboarding at TalentLab.Live
Answered 3 years ago
We create safe & productive spaces for our people to share ideas and create consensus around initiatives that will support innovation, growth, & keep pace with the future needs of our people. This culture allows us to be a true people-first organization and retain our top talent. One of the initiatives that was proposed by our Product Team in 2021 was a stipend for external learning opportunities. We met the moment with a Be Your Best Self Program that allows each individual to spend up to $1500 annually on certifications, conferences, workshops, memberships, etc. that will benefit their current & future role(s). Each person brings their proposal to their leader and they discuss the options and the leader approves initiatives that are best aligned with the person's goals and their role. This program allows an elevated level of career self-advocacy that has been a massive success as an employee-driven perk. In 2022 we had 93% usage of the stipend in the organization.
One of the best tips for successfully implementing perks and stipends is finding a third-party servicer that fits your organization's needs. Originally, we were administering our company's meeting meal perks and monthly healthy living stipends by manually reimbursing receipts, but this process was not scalable and was cumbersome for the staff handling the requests. Our solution was switching to Hoppier, which allowed us to send a pre-loaded digital credit card to our staff quarterly to cover meal and related perk expenses. We've also used this system for occasions like team retreats. This platform makes it easy to distribute funds to employees, and audit usage in bulk instead of reviewing individual purchases. It is easy for staff to use the cards at a wide variety of vendors instead of limiting their options. Simplicity and usability is key when it comes to perks, and this solution fulfilled those needs.
Expectations for better employee compensation has increased in recent time. So, more companies are creating more attractive employee compensation packages for new hires and existing ones as well. You should conduct a post-implementation debrief after the implementation of the benefit packages. A short debrief will be effective because you can find out whether the implementation was successful or not. If it was successful, you follow the same process for the new compensations as well. Conducting a post-implementation debrief should be an inevitable part of employee compensation. Ask some questions to find out whether the implementation was successful or not. 1. How would you rate our employee benefits packages? 2. Have you used any of our employee benefits? 3. How would you rate our flexible work policy? 4. How often have you used our insurance plan? The questions should not be open-ended. So that employees will not feel irritated to answer.
I've found that transparency is vital when implementing perks and stipends. In my previous company, we introduced a health and wellness stipend, but instead of simply informing employees about this addition, we organized a town hall meeting. During this, we walked them through the reasons behind the perk, how it would benefit them, and the process to avail it. We also invited questions and feedback to foster a sense of involvement and understanding. This open approach not only increased engagement but also boosted morale as employees felt valued and heard. Providing clear, accessible information about the benefit programs helps employees to utilize them better and enhances their overall job satisfaction.
One best practice for implementing perks and stipends in your company is to provide flexibility to meet the diverse needs of your employees. Some may value wellness programs and healthy snacks, while others may prefer commuting subsidies or child care assistance. By offering a broad range of options and allowing individuals to choose the perks that align with their values and priorities, you can increase engagement and satisfaction while promoting a culture of inclusivity. To ensure success, gather employee feedback regularly and adjust benefit offerings as needed to meet changing preferences and priorities. Companies like Dropbox, HubSpot and Airbnb have implemented successful flexible stipend programs.
A successful benefits program for a remote workforce should focus on offering flexible stipends. Providing a fixed stipend for varied expenses and personalized perks like fitness or education, can keep employees satisfied, focused, and productive. Companies like Chime, a financial technology company, offer benefits such as "home office setup allowance" or "Internet reimbursement" as part of stipends. They even offer an Employee Choice program, where employees can choose perks that they value the most. Always providing personalized perks, allowing employees flexibility to work from anywhere, and recognizing the importance of creating an inclusive, diverse, and healthy workforce can help your company attract and retain top talent.
A successful benefits program should be centered around employee wellness. This involves offering both traditional benefits such as health insurance, as well as alternative wellness perks and stipends such as gym memberships, mental health counseling, and healthy meal deliveries. By prioritizing the health and well-being of employees, companies can expect higher levels of engagement, productivity, and retention. Additionally, a focus on wellness can foster a positive company culture and help attract top talent. It's important to regularly solicit feedback from employees to ensure that the perks and stipends being offered are meeting their needs and improving their overall well-being.
At my company, we provide a flexible wellness stipend that staff members can spend for things like fitness classes, gym memberships, and mental health counselling. We've noticed a considerable improvement in employee engagement and general wellbeing as a result of providing this stipend. For instance, one of our staff members attended a mindfulness retreat using the wellness stipend. She felt renewed and energised when she got back to work, which helped her work and the rest of the team. This is but one illustration of how providing flexible benefits may positively affect employees' lives and eventually benefit the business as a whole.
Young businesses should strive towards stability and adaptability. The pay structure might change over time. Carry out and refine. Maintain uniformity of procedure throughout all departments, divisions, etc. Your company's values should constantly inform your approach to employee rewards. The two most important things for a startup to focus on are making money and making their product useful to customers. Instead of being a stand-alone component, bonuses should be included in the larger pay structure. This ensures that the bonus is received with gratitude and not as an expectation. It is possible to employ various bonus structures to incentivize various actions. There could be bonuses for completing certain tasks or reaching certain goals, bonuses for accomplishing certain goals as a team, and bonuses for excellent performance.
My #1 tip is to make perks as bespoke as possible, and allow employees a wide 'pool' of options to choose from. This also shows your employees that you care about them specific to what they want as a perk, rather than simply telling them what they need (or just not giving them the option to choose at all).
One best practice is to ensure that the perks and stipends align with the company's values and goals. For instance, at Breachsense we value work-life balance, thus we offer perks such as flexible work arrangements or wellness stipends to support employees' physical and mental health. By tailoring our benefits programs to the needs and preferences of our employees and aligning them with company values and goals, we've managed to create a positive and engaging workplace that is able to retain top talent.
Show employees you value them and their commitment to hard work with a well-thought-out perks package - one of the best practices for implementing perks and stipends. From bonus pay, stock options, or personalized bonuses based on performance - there are so many ways to honor those who have given their all to your business. For example, we implemented a loyalty program where employees who stay with us for more than 3 years receive additional benefits such as gym memberships, extra paid time off, a professional development stipend, and even a sabbatical leave after 5 years of service. Plus, we offer quarterly bonuses based on both company performance and individual performance, depending on roles and job duties. By implementing these types of perks, not only will employee morale be boosted, but retention rates skyrocket as well! Everyone can win when both parties work together towards achieving business goals - creating positive relationships that last long into the future.
One best practice for implementing perks and stipends in a company is to offer a fixed salary that is above the local living wage. This can serve as a baseline benefit for employees and provide them with a sense of financial security. By providing a fixed salary, employees are able to plan their expenses and budget accordingly, which can help reduce financial stress and improve their overall job satisfaction. Additionally, offering a salary that is above the local living wage can help attract and retain talent, as employees are more likely to be interested in working for a company that values their well-being and financial stability.
A successful perk and stipend program starts with understanding the culture of the company. HR/People leaders must develop a clear vision that aligns with the organization's values, and provide staff members with transparent expectations, meaningful incentives, and timely rewards. One uncommon example is to offer employees stock options in addition to more traditional benefits packages such as health coverage or career mobility pathways. This tool grants personnel an ownership stake in their workplace, motivating them to perform as effectively as possible while bringing home financial gains over time. Smart perks are like a double-edged sword: they can both encourage commitment to your organization and positively influence general productivity levels.