PERK UP

The literal meaning of Perk up is to regain or cause to regain one's good spirits or liveliness for cheering up in work. Therefore in business practices Perk up is a method of retaining employees as they are not related to productivity. Perks can encourage staff attachment to the business. It is benefits given in addition to salary as a means of increasing satisfaction at work. Perk up e.g. performance-related bonuses - can help to boost staff performance. The rewards or benefits usually relate to the achievement of certain goals, either personal, team or organizational, or a combination of all of these. It is often the most important staff motivator and incentives and perks must not be seen as a substitute for a good pay scheme. Perk up has an important role for both company & executives. Role of perk up in business:

Persuade staff to join your business. Retain existing staff. Increase staff motivation, morale and loyalty. Boost up productivity. Link individual and business performance. Focus employees on achieving targets. Build teamwork.

Executive summary
Smithson Industries is a leading company of the world. Last year and in three of the five preceding years, Smithson Industries lost millions of dollars. Smithson has found these losses hard to accept and the chairman of the board decided freeze on wage increases for its executive and to offer nonfinancial incentives. Unfortunately, however, the perk was not enough. Grumbling about the chain of events, two executives jumped ship. Above the nonfinancial incentives that I discuss better my point of view in question answers section (three question of perk up case study of-Smithson opinion here. To analyze the compensation and benefit chapter I took the Industries). I have taken the conception from compensation and benefit chapter and own thinking and have given my

supplemental nonfinancial compensation. I tried to extract and interpret the actual nonfinancial incentive to get the executive. The outcomes also presented that nonfinancial incentives are view for the better understanding of any executive.

Question Answer 1. How could this perk have been offered or marketed better to these executives? Ans: In this case all executives get extra privilege by get a membership in local spa from the company. The offered perk up may offered better to the employees by: 1. Free membership with a privilege card which includes all the facilities the spa parlor has. 2. The privilege card is transferable to the spouse who is known to the executives. 3. Membership totally free for executives family and a weekly one day full free discount on spa for executives and their spouse 4. Free transportation services for both executives & their family. 5. Get complementary invitation to all the programs held in spa. e.g. Free access to use stream bath & gym to all the executives & their spouse 6. Always updated the executives to spas new services.

2. How do you believe is the reason why most of the executives did not find the perk rewarding? Ans: The reasons why most executives did not find this perk up rewarding are given: 1. There is no option for executives families to use the spa. 2. This membership does not describes what type of membership is this. Is it gold, silver or platinum? 3. No discount available in spa service. 4. No transportation facilities and No Foods & beverages are serving to executives before or after the spa. 5. Security assurance is not mentioned clearly. 6. No complementary service was available in spa .e.g. Gym, steam bath & changing room facility. 3. Face with a similar dilemma, what would you have done if you been the chairman of the board? What would you do know that the executives are upset? Ans: If I face the same dilemma as a chairman of the board I have to take some actions to deal with the crisis. The actions are given bellow: 1. Arranges some sessions with all the executives in day basis in order to share their opinion and to identify what problem they are facing for this recessions for last few years.

2. Giving non financial compensation to all the executives. e.g.transport,lunch,medical services. 3. Calling a Special meeting where all board of directors, treasures, CEO, Managing Directors should be present to discuss about the problem. And thereby to solve the financial crisis from any other resources for the time being. 4. To reduce the other extra expenses of Smithsons organization to get proper funding to give them proper wages the executives. I as a chairman take some initiatives & actions so that all executives should come out from the mental pressure which they are facing now on. The initiatives are as follows: 1. All executives get transport facilities. 2. All get extra medical allowances or free medical check up in a hospital. 3. All executives get free breakfast, lunch & snacks. 4. All executives get foreign tour on yearly basis for improvement their skills. 5. Get extra paid for their overtime. 6. Extra maternal & paternal leave along with organizations existing leave status. 7. Education allowances for executives child. 8. Arranging Picnic with all the executives & their families form outside of the town.

Conclusion Some incentives and perks may benefit your business indirectly, e.g. free health assessments may reduce absences.

Incentives and perks must be affordable, transparent and appropriate to your business and the jobs they link to. For example, in a sales environment an employer may wish to offer extra pay or benefits when targets are achieved. It is worth consulting with staff or unions before introducing incentives and perks. They work best alongside good pay schemes and working conditions and can be most successful when implemented with other good management practices, such as performance management, appraisals and appropriate communication and training programmes.