Small biz employees prefer perks over pay raise

Updated: JUNE 21, 2018 — 9:52 PM EDT

Small-business employees prefer perks over more money, a SCORE study says.

by Diane Mastrull, Staff Writer  @dmastrull |  dmastrull@phillynews.com

If you are a small business and want to have a better chance attracting employees, pile on the perks.

A study shows privileges including free gym memberships and snacks, flexible hours, and more vacation time are preferred over a pay raise by four in five small-business employees.

SCORE, the Virginia-based network of volunteer business experts with 300 chapters nationwide, cited a study by Fractl of 2,000 employees.

The study found that perks impacted employee satisfaction in three primary areas: quality of life, feeling valued, and improving physical and mental health.

Nevertheless, 42 percent of full-time employees reported having no extra compensation.

Of those with benefits, the most common were flexible working hours (32 percent), professional development (28 percent), fitness/health (19 percent), food/snacks (19 percent), and working from home (14 percent).

Of course, free snacks don’t help an employee build 401(k) investments. Then again, many small businesses can’t afford such retirement-oriented benefits.

What are the perks?

Here's what Fractl found were the most popular perks and the percentage of employees swayed by them in choosing a job:

• Flexible hours, 88 percent.
• More vacation time, 80 percent.
• Work-from-home options, 80 percent.
• Student-loan assistance, 48 percent.
• Paid maternity/paternity leave, 42 percent.
• Free gym membership, 39 percent.
• Free snacks, 32 percent.
• Weekly free outings, 24 percent.

http://www.philly.com/philly/business/small_business/score-survey-employees-prefer-perks-and-benefits-over-pay-raise-20180622.html