Has Your Boss Cut Back On Staff Benefits?

Has Your Boss Cut Back On Staff Benefits?
florentine_biscuitsIt’s no surprise that when business belts get tightened, the perks are the first to go — and that rule seems to apply just as much to small business as it does to multi-national corporations.

A survey last week of 200 small business customers by Dell found that when it came to trimming costs, “staff benefits” (including travel, entertainment and conferences) were the first target. 60% of responding businesses said they had cut expenditure on staff benefits in the last 12 months.

While there’s probably not much point staying in a job if its sole appeal is the benefits, there’s no denying that the workplace can be less fun if fortnightly drinks get binned, or if a long-planned work trip gets cancelled. On the other hand, it probably beats unemployment. Have you seen cutbacks on expenditure in your workplace? Share your Friday frustrations in the comments. Picture from Wikimedia Commons


  • On the one hand, things like staff bonuses were scaled back significantly this year, and there’s no payrise.

    But on the other hand, there’s been no change to any of the other benefits. They even managed start subsidising our private health cover.

  • My boss has just started doing the opposite. As the recession started to bite, he announced that he was henceforth providing food for morning tea, lunch and afternoon tea. (He was already providing the tea and coffee). It’s a small business, so it’s not too big a cost. He explained to me that he is doing it in order to keep his team together, and this would be more beneficial to each individual than a payrise to the same value. The employees won’t have to pay tax on the $$ and there would be a far greater psychological impact too, as it promotes a fmaily atmosphere at work.

    I think he’s right – I want to do everything I can to keep my job. And not just any job – I want THIS ONE!

  • The company I work for has always offered a lot of staff benefits such as breakfast provided,cappucino machines, lolly jars in the kitchens, not to mention regular morning teas and staff events and team buildings. We also do a lot of internal fund raising for charities.

    The cut backs are happening though… company subsidised team building events are being stopped for a little while, and events are on a smaller scale. But when we get so much back from them, who can complain about missing out on a free lunch…

  • Cutting back on the little things is the last thing businesses should be doing during tough times as it degrades morale even lower.

    I would love to see businesses actually asking their employees what they like about their workplace and what could be improved to help them stay motivated instead of making assumptions about what works and what doesn’t.

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