Employers, worried about a potential “brain drain” even amid a stubborn recovery, are loosening their purses to restore cash bonuses and other perks to keep top talent aboard, a new survey shows.
Human resources executives surveyed by Chicago outplacement firm Challenger, Gray & Christmas found 42 percent of respondents growing more concerned about other companies poaching top talent as the economy improves. Meanwhile, nearly 49 percent of respondents said the poaching of talent is always a concern, even in a recession.
To keep them, more and more companies are reinstating perks that were cut or eliminated because of the economic downturn that began in late 2007. According to the Challenger survey, 39 percent of respondents said their companies were forced to reduce or eliminate perks during the recession.Â
With the economy starting to spring back, about 18 percent of those polled said their companies have been able to restore all pre-recession perks. Another 41 percent have brought back some of the perks that were cut or eliminated. Nearly one quarter (23.5 percent) of those surveyed indicated that they have introduced some entirely new perks.Â
These include things like free morning bagels, tuition reimbursement or flexible scheduling.
The Challenger survey found that the perk most effective in retaining top talent is the performance-based bonus, selected by nearly 80 percent of respondents.
About 70 percent of respondents said 401(k) with employer contributions was an effective perk.Â
Other effective perks included vacation/personal time (49 percent); wellness-related benefits (43 percent); flexible schedules (40 percent); and tuition reimbursement (27 percent).
