Recession forces businesses to rethink employee perks - Phoenix Business Journal:

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Many of the Valley businesses contacted for this stort declined to comment about theitrcost savings, even though strugglingy industries such as construction, financial real estate, the media and the publicd sector are enduring a varietyh of cost-cutting moves. Still, a few Phoenix-are businesses acknowledged curtailingbusiness travel, hiking co-pays for and reducing some amenities and perks, while some others said they aren’tf cutting benefits or perks.
has asked employees to pay more towardc their benefits to keep those offeringsw and make it throughtough times, said Katherine the charitable group’s chief operating Some companies are dictating the cuts, but others are givingv employees the choice of what to keep and what to get rid of in the face of needefd savings. “Even in tough times, if your staff isn’t operatinhg productively and happily, the service to clients suffers,” said Davir Eichler, a principal of Phoenix-based .
“So what we did, rather than just blindlgy slashing the budget ofeverything perkish, we estimatefd how much attrition there would be in the business and cut costas by the same percentage. Then we took the part of the budgeyt that covers things like stocking the and assigned it to our We wanted to give themownership — dare we say an allowanced — to preserve what was important to but do it responsibly.” Marianne a business ethics professof at Arizona State University’xs W.P.
Carey School of Business, said companies are cutting perks and benefits not onlyfor rank-and-fil e staff, but also for company executives who are undedr scrutiny in the wake of the Wall Street bailout and firestorms over CEO pay and executivs retreats. “I am seeinhg that the perks such asfinancialk planning, cars, etc., are dwindling. Paying dues for country clubs, etc., is going by the Jennings said. “I also see that companieas are even balking at paying for participation in charitable golf She also said businessese are scaling back on college tuitionreimbursement benefits.
Dona an employment attorney with lawfirm , said some cost-consciouss employers are finding savinges in new health and dental plans as providera offer discounts to new customers. recently had its employeesz start paying more for cable boxes but that was because of a taxliabilitty issue, not the economy, said spokeswomajn Andrea Katsenes. The telecommunications company still is offering its employees free cable and reducedphone prices, she Some businesses not only are keeping all of theirr amenities and perks, but also are addin g new ones. Phoenix-based , for example, recently openedc a child care and fitness cented at its northPhoenix headquarters, said spokes­womajn Jessica Douglas.
Vice President Elizabeth Driscol saidthe Scottsdale-based Web domain firm has not cut any perk s or benefits.