Measuring the ROI of Work Perks: Are They Worth the Investment?

July 8, 2024 | 4 min read

In an increasingly competitive business environment, companies are leveraging work perks as a strategic tool to attract and retain top talent, as well as to better achieve business goals. According to a CDC study cited by Forbes, “healthy workforces are more productive, cost-effective, and stable.” These work perks, ranging from flexible working conditions to gourmet office food services like FELFEL, not only enhance the attractiveness of a company but are also pivotal in boosting employee morale and productivity. However, the real question remains: Can businesses accurately measure the return on investment (ROI) of these work perks, and how?

Are work perks genuinely worth the investment?

Work perks have evolved from simple morale boosters to essential elements of corporate strategy. Effective perks address employees' needs and contribute to a holistic work-life balance, making them critical tools for fostering employee loyalty and satisfaction.

Understanding the Value of Work Perks

Intentional, employee-driven work perks and benefits are a core part of developing healthy cultures at work, which translates to business results. According to McKinsey & Co: Companies with top quartile cultures post a return to shareholders 60 percent higher than median companies.

1. Cost Savings and Efficiency Gains

One of the most tangible benefits of some work perks, especially those that streamline operational processes, is cost savings. Implementing smart food solutions like FELFEL not only reduces annual food spend by up to 28% but also enhances the efficiency of food management.* This cost reduction is achieved by minimizing waste, optimizing resource use, and improving procurement processes, which altogether contribute to a leaner, more cost-effective operation.

Subsidizing employee meals vastly improves office attendance and employee retention. For teams that perform better in-person, this is a valuable benefit.

2. OFFICE Attendance

The presence of reliable and valued work perks like quality food services significantly influences daily attendance. Data shows that office attendance can increase by as much as 50% on days when such perks are available.* This suggests that employees greatly appreciate the convenience and quality of in-house services, which in turn serves as a motivation for them to come to the office more regularly.

3. Employee Retention

Perhaps the most crucial aspect of work perks is their impact on employee satisfaction and retention. Enhanced office food services like those provided by FELFEL have led to employees reporting three times more happiness and satisfaction, which correlates strongly with increased retention rates. Indeed, 99% of companies observe that employees tend to stay longer at their jobs once FELFEL perks are introduced, underscoring the significant ROI these employee benefits can offer in terms of employee loyalty and reduced turnover costs.*

Work perks that encourage team bonding, as opposed to individual employee benefits, can also help build community at the workplace.

4. Time Saved Equals Money Earned

In the realm of business, time is money. Services that save employees' time can have a direct impact on productivity. A well-integrated office food solution like FELFEL can save employees up to 45 minutes each day during lunch breaks.* This significant time saving translates into more time focused on productive work activities, effectively boosting overall business output and employee satisfaction.

5. Waste Reduction: A Financial and Ethical ROI

The ethical and financial implications of waste reduction are profound. Innovative food programs that achieve zero waste, such as FELFEL, not only save costs but also reflect positively on the company’s corporate social responsibility profile. By efficiently managing waste and donating excess food to local communities, businesses can enhance their brand reputation and support sustainability—a growing concern among modern consumers and employees.

The FELFEL’s smart technology customizes offerings based on your team’s consumption and dietary needs — ensuring maximum value.

the Broader BUSINESS Benefits OF WORK PERKS

Beyond direct financial savings and productivity gains, work perks also offer broader benefits such as improved employee health, reduced absenteeism, and a more vibrant company culture. These factors, while sometimes harder to quantify, contribute significantly to the overall health of an organization and its long-term success.

Test, Assess, and IMPLEMENT

Though it may seem challenging to calculate ROI for work perks, setting a specific time period for testing and assessment may help. As recommended by Forbes: “Implement a perk for a period of six months and then measure and monitor usage so you can assess people’s preferences based on their actual choices and behaviors.”

Investing in work perks is a strategic decision that goes beyond merely creating a fun or comfortable environment; it's about enhancing business operations and creating a workplace where employees thrive. The compelling data supports that well-chosen work perks not only provide substantial returns through direct savings and efficiency gains but also play a crucial role in fostering a happier, more committed workforce. As businesses continue to evolve, those that can effectively implement and leverage these employee benefits are likely to succeed in the competitive corporate landscape.

*Data from 2023 FELFEL End of Year Survey.