8 unconventional benefits million-dollar companies use to retain employees, from minimum vacation days to work-from-home care packages
Jennifer Ortakales Dawkins
- Employee benefits are key to hiring and retaining talent in today's competitive labor market.
- HR expert Sophie Theen suggests companies tailor their policies and culture to their employees.
- Here are eight unconventional benefits million-dollar companies use to keep workers happy.
Last year, Nike introduced a new company policy granting all of its corporate employees a week off in August, deeming it "well-being week."
While this type of company perk may seem appealing to replicate at your own company, benefits aren't one-size-fits-all, said Sophie Theen, an HR expert, author, and leadership coach. Theen advises companies that are between their seed to Series B funding rounds to help them build their human resources and culture. She's seen many startups make the mistake of trying to offer the same benefits that large companies do, prioritizing quantity over quality.
"We are so far from talking about traditional benefits to retain people," she told Insider. "We're talking about people-centric strategies."
Though the US unemployment rate remains low and the quit rate stays high, small-business owners are seeing an increase in competition for talent. It's important for entrepreneurs to take a people-centric approach to benefits to retain employees.
Theen suggests founders cater their offerings to what makes the most sense for a range of employees. For example, an employee in their 20s may care more about mentorship and career advancement than dental plans. Meanwhile, an employee in their 40s with children may care more about healthcare coverage and flexible hours than office perks.
If a company doesn't cater to multiple age groups, "you really lose out on a slightly different generation," Theen said. "Think about the benefits that actually work for every stage of their life."
Small companies are uniquely positioned to offer creative benefits, because it's easier to budget and get leadership's approval, she said. Theen gave examples of effective policies she's seen in her career working for and advising startups.
Here are eight policies and benefits that companies with millions of dollars in funding or revenue use to retain employees, based on Theen's advisory experience and additional reporting from Insider.
Goop closes its office for two weeks in August and one week in December
Total funding: $75 million (Source: Crunchbase)
Goop is a US-based lifestyle company that gives all its employees two weeks off every August and one week off in December for the holidays.
Goop's founder and CEO Gwyneth Paltrow started this company policy while she was living in London. When she moved back to the US, she kept the tradition going, despite pushback from investors, she recalled during a fireside chat at the Goldman Sachs 10,000 SMB Summit in July.
"In August, everybody is on vacation or people are slowing down anyway," she said. "It affords people the luxury of time with their families and not being concerned that they're missing something."
Flexa makes its roles open to an employee's availability
Total funding: $3.05 million (Source: Crunchbase)
Flexa is a job-search company based in the UK that offers some roles as either part time or full time, based on a candidate's availability. This flexibility shows employees the company is considerate of their needs and circumstances, Theen said.
"They're catering it for someone who can do the job regardless, in what capacity they can," she added.
Boom gives a work-from-home budget and cultural holidays off
Total funding: $18.5 million (Source: Crunchbase)
Boom is a photo-tech startup based in Italy that offers a budget for work-from-home expenses, which makes it easier for employees to travel while working remotely. The company also lets employees take off any cultural or religious holidays of their choosing.
Theen said these benefits attract a more diverse staff. "It becomes a really attractive benefit for people who want to join a global company," she said.
Vangst encourages staff to join its book club
Total funding: $31.5 million (Source: Crunchbase)
Vangst is a cannabis-job-recruiting company based in the US that hosts a weekly book club, focused on reading about personal development. The founder and CEO, Karson Humiston, previously told Insider that the highest-performing employees in her office were members of the book club.
"People who read books about the power of positivity, set their intentions and goals, and then follow through on them, really do outperform people who don't prioritize personal development and self-improvement," she said.
Oakam requires employees to take a minimum amount of time off
Total funding: $41.5 million (Source: Craft)
Oakam, a UK fintech company, has an unlimited vacation policy but takes it a step further by requiring employees to take a minimum of 20 days off a year.
Theen said offering unlimited vacation without guidelines can lead to disaster because employees are less likely to take time off. Providing a minimum promotes mental health and prevents burnout. "You're less likely to lead to burnout or people not taking holidays, especially in today's world where everybody's working remote," she said.
Checkout.com sends care packages every six months
Total funding: $1.8 billion (Crunchbase)
Checkout.com, a UK payments-solutions provider, is fully remote with no office location, so it sends employees care packages every six months to keep everyone connected virtually. This fosters conversations among staff about the different gifts they received, Theen said.
"It creates this really nice, casual social conversation that otherwise would not happen when you're in a virtual world," she said.
Lush has an employee shares program
Total revenue: $943 million (Source: Insider)
Lush is a global cosmetics company based in the UK that grants employees shares in the company through its Employee Benefit Trust. Lush's cofounder Rowena Bird told Insider that 10% of the company's shares are in the EBT, and although employees don't receive dividends, they hold voting power on major decisions the company makes.
"The last thing we want as the founders is that as we get older and move out and other people run the business, they could then sell it to somebody like L'Oreal or another big conglomerate that changes the whole nature and feel of the company," Bird said, adding that whenever she leaves the company, her shares will go into the EBT.
11:FS sends small gifts to boost employee morale
Total funding: $3.81 million (Source: PitchBook)
11:FS is a fintech company based in the UK that sends its staff small tokens of appreciation, such as doughnuts or plants. For mental-health month, Theen said the company mailed employees postcards with an encouraging message.
Small touches don't have to be costly and can brighten an employee's day, she said. "Everybody had this postcard on their laptop and they go, 'I know some days are tough, but I've got this.'"
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