Company perks.

In the late 90s it was very difficult to attract good quality staff, so companies used all kinds of techniques to draw them in. These incentives became famous and were known as options. What are these advantages? How good are they really? Are they still around and how have they changed?

You might think these bonuses are wonderful until you consider the price tag and how much it is really costing you. Late nights, no holidays, long business trips, and stressful meetings might not be worth it. Before accepting these bonuses consider the following:

The real costs of perks.

• The company car : Real cost $220 to $370 a month. ($2,800 to $5,000 a year)
• Gourmet lunches : Perhaps a great perk but the value is more prestige than cash ($5,000 a year based on $100 a week).
• Stock Options : Costs vary according to performance (watch the value and conditions)
• Business Class Travel : Double the cost of regular travel. Is it worth it?
• Blackberry : $150 plus $60 a month in fees making a total of $1,200 a year.
• Profit share : Can be lucrative the first year. (watch the performance as with stock options)
• Bonuses : Direct benefits. The question is how much.
• Health insurance : This can be a benefit but which package. Prices range from $2,000 to $8,000 a year.
• Kids' education : Real costs can be high but like health insurance read the fine print.
• Golf club membership: Good for networking but how about Lion’s Club.

Perhaps an increase in salary might be worth more than the perks. Before embarking on the perk route consider the true cost of these advantages that are being offered. Of course, these perks have value but before signing your contract or negotiating the terms of employment consider the real advantages and the cost.

Management Magazine
Scott Levy