How to Take Away an Employee Perk

How to Take Away an Employee Perk

Employee perks are intended to inspire, motivate, encourage, and reward Company loyalty. They can spur employees to do better work as well as prompt creativity. The variety of perks is limited only by your imagination and budget and can range from paid time off, free food in the break room, babysitting services, gym memberships and employee discounts on a vast diversity of services and products.

Perks are sure fun to add but incredibly difficult to cancel. A specific perk may need to be eliminated because the expense is not sustainable, employees are abusing the privilege, or the perk itself is undermining the productivity of the Company. Regardless of the circumstances for the perk’s cancellation, employers must tread carefully lest they provoke an employee mutiny.

Here are the (4) four most important steps to consider in order to mitigate the anger and resentment that can erupt in the workplace:

  1. Inform your Managers and Supervisors and get them on board with the change. Your Managers and Supervisors interface with their team every day and will have to handle their questions, disappointment, and negativity. Prepare them well before you go to the rest of the employees with the news.
  2. Don’t send an email or have a Consultant break the news. Open communication when it comes to bad news is the best policy.  It stifles the ability for the rumor mill to run rampant, it squashes the possibility that misinterpretation will be the main takeaway.
  3. Communicate openly and decisively about the change. Try to be as transparent as possible and explain why the perk must be eliminated. Don’t mince words and be clear. It’s extremely important not to leave your employees uncertain about the situation and whether or not the Company and/or their jobs are in jeopardy.
  4. If at all possible, remain positive and upbeat. No employee wants to hear a “Woe is me” attitude from senior staff or Management. Try to offer some sort of alternative or substitution for the perk being eliminated. A reduction in frequency or scope of the perk might be possible and will certainly serve to show your appreciation for your employees.

Remember that while perks are enticing, nothing will replace a positive working environment in which employees are offered a competitive wage, good working conditions, and opportunities for advancement. Smart employers know that these are the things that keep their employees happy and not simply the free snacks in the break room!



For further discussion or comments, please contact Gail L. Trugman Nikol, President Unique Business Solutions, gail@ubsassociates.com or call (516) 935-5641.

By admin September 26, 2017