Do luxury perks and ultra-cool facilities really create a better work environment?

Once upon a time, office facilities equated to a desk, a chair and a coffee machine if you were lucky. Greenery was sparse, save for perhaps a vase of flowers on the desk at reception. The poorly equipped workspaces of yesteryear, with their grey walls and squeaky whiteboards, were designed as locations for unadulterated concentration, free from distractions and frivolity.

However, the ultra-cool offices owned by some of the world’s most prestigious businesses now resemble adult playgrounds, boasting facilities such as slides, hammocks and nap pods. Gone are the days of endless meetings in soulless conference rooms; they’ve been replaced by walking ‘think-ins’, most likely accompanied by at least one team member’s pet spaniel.

“What Google has done is raised the bar for the amount of time, attention, thinking and financial investment that organisations should make in their workplaces’ facilities,” said Tim Oldman, CEO of Leesman, a company that compiles an eponymous index charting effectiveness in thousands of workplaces around the world. While some view the installation of trendy facilities as necessary in the war for talent and contributory to productivity, others have questioned whether it really aligns with what modern employees seek from their workplace experience.

“Most of the Millennials we speak to through our survey are slightly embarrassed by things [like slides],” said Oldman. “They’re a group of the workforce that are keen to prove their value and work up the corporate ladder. Our experience is that they tend to steer away from those sorts of facilities because when they’re using them, they’re somehow fulfilling their stereotype.” As such, it is likely that Millenials would be just as satisfied with comfy seating areas or a cafe to relax in.

Both Perkbox and Leesman’s research highlights the fact that Millennials are keener than any other age group to access benefits that allow them to further their careers. “They come into the workforce expecting to learn more and access a higher level of knowledge transfer,” said Oldman. In Perkbox’s survey, 47 percent of Millennial respondents listed access to training and learning resources as a priority perk. This indicates that there’s a real mismatch between those designing workspace facilities for Millennials and Millennials themselves. “With regards to companies like Google, I think we’ve been somehow distracted by the slides and the gimmicks,” said Oldman. “We don’t ever see photographs of desks or meeting rooms or coffee machines – all we see are the swing seats and the foosball tables. It’s easy to forget that there’s actually some awesome benefits-infrastructure behind that.”

Transforming the work environment into a more domestic space can make it difficult to switch off from one or engage with the other

It’s also important to remember that, while Millennials make up a significant proportion of the workforce, they’re not the only demographic to take into consideration when it comes to perks and office design. Given their current age, it’s unlikely that Millennials are the largest revenue generators for most corporations. Although they may grow into that role, currently the greatest contributors to company profits are likely to be from Generation X, who are aged between 38 and 53. “The risk is that [companies] become so blindly obsessed with appealing to what they’re told Millennials want that, actually, they forget about the rest of the workforce – those that are generating the majority of innovation and income for the organisation,” Oldman told World Finance.

This age group is likely to have the most complex role within an organisation, balancing managerial, strategic and revenue-generating responsibilities. As such, they are the most in need of infrastructure to support them. This may include perks that bring down the cost of living, as workers at this stage of life are likely to have a number of significant financial responsibilities, such as a mortgage or costs associated with supporting children through school or university. According to Perkbox’s survey, 89 percent of Generation X respondents deemed discounts at supermarkets to be an important perk. A further 86 percent said they would like the opportunity to bring their child to work, a perk that would save on childcare costs. “This is a group that looks for a benefits package to support them in being committed to their role and to that organisation,” said Oldman.

Crossing the line
It’s not just the demographic debate that has led some to question the effectiveness of luxurious office facilities. Some have raised concerns that making corporate spaces an extension of the home serves only to blur the line between work and leisure. If an office boasts facilities such as laundry rooms, there can be a perception that employees no longer need to go home to complete that task and will therefore work longer hours.

Similarly, transforming the work environment into a more domestic space can make it difficult for employees to switch off from one or engage with the other. “If it’s done in the wrong spirit, this absolutely can happen,” said Saghal. “That’s why context is so important. But at the same time, I think people don’t really separate work and life quite as much today as perhaps in previous generations – work is more an extension of life.”

There’s also the matter of cost. Installing unique facilities certainly isn’t cheap – nap pods, for example, can cost up to $13,000 a pop. Smaller companies simply cannot afford that sort of investment, but this could mean they lose out on top talent as candidates defect to companies that can splash out. “Of course it’s a cost, but it’s also extremely costly to have to find new talent if you can’t retain the talent you already have,” said Saghal. “By staying longer, [talented employees] provide a return that’s… much larger than any outlay that goes on to perks, benefits and so on.”

Saghal added, however, that companies don’t necessarily have to splash out on Instagrammable features to retain employees. In fact, initiatives that are very low-cost or even free can have similar benefits. Saghal gave the example of a ‘bring your dog to work’ policy, saying: “That’s really no cost to us, but immediately, it takes a load off our employees’ minds and it makes for a much more fun environment.” He continued: “A company shouldn’t be dissuaded from implementing perks because of cost.”

Appearances can deceive
Ultimately, as an employer, the best way to go about deciding on how to make your office space more appealing to your employees is to ask them what facilities would benefit them the most. Before that process begins, though, it’s vital to ensure that the company has the structures in place to support potential benefits. “Employees are increasingly cynical of being somehow missold policies such as the ability to work from home,” said Oldman. While many may jump at this opportunity, “if [employees] then don’t have the technology, the digital security to be able to connect from home, or their employer isn’t contributing to their internet connectivity, it all falls down quite quickly,” he added.

Only once those logistical issues have been worked through should an engagement process with employees begin. “This shouldn’t just be with employees that are high up, either,” said Saghal. “If you’re really trying to create a kind of culture that’s nimble and agile, there should be consistent and constant feedback at a variety of levels.”

This consultation process can help employers develop a value proposition, which is designed to improve the experience of existing employees and draw in new talent. “That starts with mission and values, and continues through perks,” said Saghal. It may be that employees of a certain company do particularly value perks such as massages, beanbags or foosball tables, but the implementation of those facilities should be a result of their feedback, not a top-down policy according to what other companies are doing or what’s considered trendy. A consultative culture where all contributors feel valued is worth far more than a slide in the office, even if the former doesn’t look so swish on the pages of a magazine.