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These nontraditional benefits reflect the down-to-earth mind-set of the '90s, a far cry from the conspicuous consumption that dominated the 1980s. For some, quality-of-life initiatives are more meaningful and more of an incentive to do a good job than gargantuan salaries and lofty signing bonuses. And this isn't likely to change anytime soon. In fact, nontraditional benefits like financial-planning services and long-term care insurance are among the top benefit choices that employers intend to expand over the next two years, according to a 1997 survey of 509 companies done by Hewitt Associates, a Lincolnshire, Ill., human-resources consulting firm. By the year 2000, alternative work arrangements, like flextime, job sharing and telecommuting, will probably be offered by more than half--57%--of the employers surveyed.
PROFITS FROM LOYALTY
What's the payoff? For starters, loyalty in a job market where the word is a rarity. Hewlett-Packard estimates that its staff turnover rate is one-quarter to one-third that of competing computer companies in the U.S., says spokeswoman Amy Flores. The company's New Age benefits include flextime and telecommuting, time off for volunteer work in K-12 school programs, and referrals for day-care and elder-care services. "While salary is still an important factor, people will take a lower-paying job if it means they will receive better benefits that make a substantial difference in their lives," says Pam Kerns, corporate account executive with Knowledge Beginnings, a work-life consulting firm based in San Rafael, Calif.
Such benefits can take many forms. Along with the family and flexible work arrangements, some companies provide additional time off in the form of sabbaticals. Others simply offer to make people feel better--by having an on-site psychologist to speak with about personal problems, letting employees volunteer for their favorite charity on company time or having a vacation paid for by the boss. High-tech firms, financial institutions, travel companies and consulting firms have been among the most progressive in offering such creative benefits, Kerns says.
Nancy Rowland, 56, an administrative assistant at ATS Telephone & Data Systems Inc., a Memphis, Tenn., telecommunications firm, is a big fan of the new approach. Worried about her daughter's marital difficulties, Rowland sought advice three years ago from the company's part-time industrial psychologist, Paul Stuart. He spoke with Rowland and even counseled her daughter and son-in-law. Rowland has met with Stuart, who is an ordained minister, to seek solutions to other problems--and just to ask his opinion on decisions like whether to move from a rural area to a more suburban setting to be closer to her job. "My company sees me as more than just someone who sits in front of a computer--as a multi-faceted person with a variety of concerns and needs," says Rowland, 56, who has been at ATS for five years. "Having someone like Paul to talk to gives me an emotional as well as a spiritual lift," she adds. "I really feel like he cares about me and my family. This kind of attention is something you don't want to give up."