Perk It Up

Sydney Morning Herald

Saturday November 27, 1999

DENISE CULLEN

It is not only the pay that is packing the punches with employees.

ABSEILING, Spanish lessons, coffee appreciation classes and a day spent sailing around Sydney Harbour are just a few of the activities that Russell Regan has undertaken during the five years he has worked for MLC (part of the Lend Lease Group).

And all at the expense of the company, of course.

In addition to an employee share acquisition plan and a profit-share scheme, Lend Lease grants employees about $1,400 every year to spend on personal programs. "It's about creating a balance that recognises employees have personal lives, families and outside interests," an MLC spokesperson explains.

Keeping employees happy is one of the biggest challenges modern organisations face. A study by a human resources consulting firm, Mercer Cullen Egan Dell, found that employees regard pay as only the fifth most common reason for leaving a job.

Employees regard the quality of the total work environment to be far more important than pay levels. Areas which are important to employees include: incorporating recognition programs; the quality of the immediate manager; family-friendly policies; flexible working arrangements; opportunities for personal and career development; and a host of increasingly imaginative employee benefits.

"These factors are starting to differentiate organisations," says Bruno Cecchini, a consultant with Mercer Cullen Egan Dell.

"Most companies can match any competitor's offer in terms of pay and benefits, but they might have difficulty in providing the same environment and opportunities for growth," says Cecchini.

Subsidised loans, complimentary dry-cleaning, wine allowances, share-purchase plans, discounts on meals, in-house massages and manicures, luxury hotel accommodation, on-site child-care centres, and reductions on international air fares are all part of the corporate arsenal when it comes to attracting and retaining a satisfied team.

"Employees appreciate things like salesperson-of-the-month awards, admission to the corporate box, or free tickets to the movies. The value of these things is much greater than the monetary face value," says Cecchini.

The Body Shop, for example, offers six weeks of nappy wash to permanent employees with newborn babies and, through the LOVE (Learning is Of Value to Everyone) program, provides employees with $200 to put towards learning a new skill of their choice - but it must be something they've never tried before and unrelated to their work.

Microsoft attributes its low 8 to 9 per cent attrition rate - half the market average - to a variety of employee-friendly initiatives, including "substantial" discounts on software and hardware, an on-site gymnasium (in the Sydney office) and a bonus scheme. Its regional human resources manager, Mark Newton, says Microsoft's Lifestyle Program is unique throughout the industry.

"We have a 55 per cent participation rate across the board," he says. "We schedule three-monthly assessments whereby

staff can sit down with an expert and address issues which may affect their health, their overall balance and, in the long term, their job satisfaction. We then construct a flexible program that can be used anywhere, which is important in the IT industry,

considering staff-

time constraints."

Newton claims one of the benefits of the program is healthier, more productive workers. A study conducted in 1997 found that 47 per cent of Microsoft employees were not undertaking regular exercise - by this year this figure had dropped to 31 per cent.

"Many companies offer massage to employees to help prevent stress and injury. Even 15 minutes of massage can prevent shoulder and neck pain, which can be caused by long hours of computer and telephone use," says Stephanie Wiltshire of Mobile Healing Hands.

Industry-specific benefits can also be substantial. After six months' service, staff at Sydney's Hotel Inter-Continental are entitled to five nights' complimentary accommodation at related properties and a 20 per cent discount on food and beverages.

Flight Centre staff enjoy up to 50 per cent reductions on the cost of hotel accommodation and up to 75 per cent off published full fares.

At Westpac, the benefits include discounted housing loans (to the maximum value of a multiple of your salary), an interest-free advance to purchase public transport season tickets and up to three fee-free deposit accounts.

Southcorp Wines gives employees an annual wine allowance to acquire labels

such as Blues Point, Seaview

Glass Mountain and Lindemans Bin 65 Chardonnay. The policy makes sound business sense, says the group employee relations manager, Russell Varley. "It allows people to appreciate and obtain an understanding of the products that we sell," says Varley.

Knowing your value

Log on to Mercer Cullen Egan Dell's free online Salary Calculator at www.ced.com.au/site/index.html and look under "Freebies" (you'll need to register first).

You can calculate the value of your package by entering base salary and common components such as leave loading, bonus payments and superannuation.

Bruno Cecchini says that the Web site includes a range of benefits that are often overlooked and it can carry out complex calculations. It also features a car calculator so that you can find out how much your wheels are worth.

It's quite easy to move from one manufacturing

organisation or office environment to another, only to discover that big-ticket items - like cars - are costed differently, while other items - such as mobile phones - aren't included.

Accepting an offer that appears generous on paper without doing independent research first can mean selling yourself short.

"It's a trap for the unwary and something that we are constantly reminding organisations and individuals about - make sure you are comparing like with like," Cecchini warns.