Benefits are back
But forget lavish extras: The focus is now lifestyle
By Diane E. Lewis, Globe Staff | July 8, 2004
The economy is coming back and so are the perks.
But forget the fancy cars and foosball tables that dominated the dot-com era. Instead, specialists are predicting that companies eager to recruit and retain workers will offer a slew of lifestyle benefits as the economy recharges. The new perks range from pet insurance and home-buyer assistance programs to ''quiet" rooms to alleviate stress and onsite chiropractors to help workers ease aches and pains.
Many of these new benefits are designed to promote worker well-being at a time when US employers are struggling to contain healthcare costs. Specialists say perceptive employers are looking to create ''psychologically healthy" workplaces where stress is kept to a minimum, teamwork is encouraged, and flexibility is the norm.
''The goal, of course, is to keep costs down," said Richard Federico, vice president of work life and communications at The Segal Co., a New York-based human resources consultant. ''With all the concerns about healthcare costs, the other thrust is getting people to pay more attention to keeping themselves well and providing meaningful programs that will do that."
This year, the Society for Human Resource Management listed 217 offerings in its annual benefits survey, about 21 more than in 2003. The newcomers include low or no-interest loans, personal tax services, child-care expenses for parents on business travel, pet-care arrangements for traveling workers, and drop-off photo developing services.
Debra Cohen, vice president of knowledge development at SHRM, said the new perks are part of a push to expand benefits to include a menu of offerings that help a greater range of workers at little or no cost to the employer.
''You can't please everybody," said Cohen, ''but this allows employees to look to the employer for the kinds of things they need to live their lives the way they want, relative to work."
And with the economy thriving again, ''work-life benefits become, unquestionably, more important recruitment tools," said Federico.
At Citizens Bank, for example, Massachusetts employees can avail themselves of a $1,500 emergency assistance fund to help with burial expenses or other tragedies. They can also access home-buyer assistance, enhanced military leave, and pet insurance. The insurance, one of the bank's newer offerings, is provided through California-based Veterinary Pet Insurance Co.
Kathy Schoeffler, director of human resources at Citizens Bank Massachusetts, said about 50 of Citizen's 3,798 Massachusetts workers carry the insurance, which covers dogs, cats, birds, and exotic pets such as ferrets, geckos, and pot-bellied pigs.
Take Breeda Cosgrove, 30, of Brockton. When her Labrador retriever, Tucker, developed an ear infection and his cries woke her one night in March, she rushed him to an all-night veterinary hospital in Raynham. The price tag: $250.
Cosgrove signed up for the bank's pet insurance the next day. The senior human resources representative pays $30 a month for a plan that covers 60 to 80 percent of medical costs, depending on care.
''My dog is like a kid, and he has to be protected the same way you would a kid," said Cosgrove. ''And every little penny helps."
SHRM's Cohen said about 3 percent of US employers offer pet insurance, up from 1 percent in 2000.
''Employers are not necessarily paying for pet health insurance, but they are offering access to it," said Cohen. ''They know that pets are important to some people."
In cities where home prices have skyrocketed, some employers are offering mortgage discounts and home-buyer education programs to attract and keep workers. At Intuit, the California maker of personal finance software, employees like Alex Balazs, 33, of Plymouth, rely on such benefits to buy or refinance homes.
Balazs, a senior software engineer, and his wife, Zsuzsi, used a mortgage discount program to refinance their single-family house last year, shaving $125 off their monthly mortgage payment. The couple also saved $7,000 in down payment costs, points, and processing fees when they bought their home two years ago using this program.
Jim Grenier, Intuit's vice president of human resources, said more than 1,000 employees have processed home loans through the program administered by Quicken Loans. Intuit employs 7,500 in the United States and abroad.
''Intuit plays in a very professional, high-tech job market," said Grenier. ''We are always searching for ways to improve the benefits program and stay ahead of the competition. . . . Anything you can do to make something more valuable or save employees' time, they're really going to appreciate it -- in fact love it."
Diane E. Lewis can be reached at dlewis@globe.com.
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