Casualties of businesses cutting back included complimentary coffee and fruit and reducing the availability of gym memberships. Photo: 123RF
Businesses are cutting back on employee perks and rethinking reward policies as times get tougher.
A survey of 503 New Zealand workers by recruitment agency Frog Recruitment, showed one in four workers said their employers had cut staff benefits in the last six months.
Casualties included complimentary coffee and fruit, and reducing the availability of gym memberships.
Frog Recruitment said it is part of an international trend known as the "perk-cession", as companies cut costs ahead of a possible recession.
"For most businesses operating in this current difficult economic environment and in the face of a looming recession, perks are on the chopping block," the agency's managing director Shannon Barlow said.
"However, retaining talent is more critical than ever, and when salary raises are not an option, maintaining or offering individual benefits can keep people happy."
Managers should be transparent if they needed to tighten the purse strings, Barlow said.
She said while economic conditions were deteriorating, unemployment remained low and she warned businesses to stay competitive in the labour market.
"This means keeping the vital benefits at the status quo. Removing valuable benefits can convey that the business is in trouble, and the organisation is at a higher risk of a competitor swooping in to offer your best talent the rewards they are missing in your workplace.
"In tough times, employers can't afford to jeopardise business continuity."
Maintaining a productive workforce through a recession would be "the real benefit for everyone", Barlow said.
