Why 'flashy' perks won't keep employees at work

• Key Insight: Learn why perks no longer drive retention; benefits must enable meaningful work.
• What's at Stake: Failure to adapt benefits risks lower retention, engagement, and competitive positioning.
• Forward Look: Expect benefits personalization, flexibility, and leadership practices to define employer competitiveness.
• Source: Bullets generated by AI with editorial review

Leaders may believe that offering flashy, unique perks encourages employees to stay, but in some cases, those efforts could have the opposite effect.

Fifty-one percent of employers say that using benefits to retain employees will become even more important in the next 3 to 5 years, according to a survey from insurance company MetLife. However, despite knowing the importance of comprehensive plans, many still rely on nonessential perks such as office amenities and social events to recruit and retain employees. But according to one workplace expert, that won't work for long. 

"It's not that workplace perks like free food, happy hours, swag, or game rooms aren't appreciated — employees may still enjoy them," says Michele Herlein, founder of workplace culture consulting firm CultureMax. "The challenge is that perks provide temporary satisfaction rather than lasting fulfillment. They are short-term boosts, not sustainable solutions."

Read more: Child care surpasses retirement as top work perk

Employee's expectations have evolved, Herlein says, and they are placing more value on respect, purpose and leadership than on traditional perks. Employees increasingly want to feel their contributions matter, have opportunities for growth and trust the people leading their organizations. This shift reflects a broader change in how workplace culture is being defined: Instead of being shaped by amenities or extras, culture is now more closely tied to employees' day-to-day experiences, their sense of connection and whether they feel fulfilled at work, Herlein explains

"The most effective organizations view perks not as culture creators but as culture reinforcers," she says. "The goal is no longer to impress employees with extras, it's to support them in ways that make their work and lives a little easier and more meaningful."

For leaders looking to make impactful changes to their benefit strategy, Herlein shares why employees' needs have evolved, how leaders should be responding and the consequences if they don't move fast enough. 

What prompted the shift in workplace perks? 
Benefits are evolving beyond one-size-fits-all perks toward flexibility, personalization and whole-person support. This shift reflects a fundamental change in how people think about work and life. Today's employees are not looking for extras that create short-term enjoyment; they are looking for support that makes work sustainable and meaningful. Flexibility in when and where work happens, benefits that reflect different life stages and individual needs, expanded mental health and financial wellness resources, and meaningful opportunities for growth have become far more valuable than traditional perks. 

How should benefit leaders be adapting?
Benefit leaders need to shift their focus from adding more programs to creating more impact. The question is no longer, "What else should we offer?" but rather, "What do our people actually need to thrive?" This starts with listening and understanding the real pressures employees face across different life stages, roles, and circumstances. From there, the priority should be flexibility, personalization and simplicity.

Read more: A new employee perk: Help navigating the funeral home maze

Just as important, benefit leaders must think beyond offerings and consider the overall employee experience. The most valued benefits today — flexibility, manageable workloads, supportive managers, and opportunities for growth — sit at the intersection of benefits, culture and leadership. This requires a closer partnership with business leaders to ensure policies, work expectations and manager practices reinforce well-being, rather than undermine it.

What are some workplace perks leaders could be preserving? 
There are still many workplace offerings worth preserving, particularly those that strengthen connection, reinforce appreciation and support the daily work experience. Perks that bring people together, such as team celebrations, shared meals during key moments, and opportunities for in-person connection, continue to matter because they build relationships and a sense of belonging. Recognition programs, small moments of appreciation and milestone celebrations are also important because they reinforce that people and their contributions are valued.

Convenience-focused perks like wellness resources, on-site or virtual fitness options or employee discounts can also have a meaningful impact by reducing friction in the workday. The difference today is that these perks should be intentional and aligned with what employees actually find useful, rather than being offered simply to create a fun environment.

What are the consequences of not adapting their strategies?
When organizations do not adapt their benefits and people strategies, the consequences show up quickly in engagement, retention and performance. Employees today are more intentional about where they invest their time and energy. If their workplace does not support their well-being, growth and flexibility, they may stay physically present but become emotionally disconnected. Over time, this leads to lower discretionary effort, reduced innovation and a more transactional culture.

Read more: One Size Doesn't Fit All: Customizing Perks for Every Generation

Organizations that fail to evolve their employee experience struggle to attract and retain top performers, especially in a market where flexibility, growth, and meaningful work are key decision factors. What was once considered competitive quickly becomes table stakes, and organizations that stand still begin to fall behind.