While I was meeting with one of my managers about a project I’m working on in the office, we got to talking about a little bit of history within our department. Several years ago, the group went through a major budget cutback and massive layoffs. The team I now work with (within the larger department) used to have 90 employees and now we have ten. The cutback included removal of the floor’s water cooler. Management claimed this was an “enterprise-wide initiative,” but in reality, our department proposed the removal of watercoolers cost-saving plan to the corporate office, who suggested it be attempted in this department only.
Employees were clearly upset. Employees in other departments did not have watercoolers removed. This created a large amount of bad sentiment among the employees.
According to Business 2.0, the trend of increasing on-site benefits has returned in an effort to attract and keep talent. But it’s a zero-sum game. The magazine gives the example of Microsoft, which has cut back vacation time, reduced the employee stock purchase plan discount, and increased the prescription drug co-payment, while returning their old benefit of “free towel service.”
I don’t know which I’d rather had. While the watercooler lets me fill up my bottle for free and keep me hydrated throughout the day, I could probably survive without it if the alternative was more vacation, lower medical costs, or a higher salary.
Updated February 6, 2012 and originally published August 8, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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{ 5 comments… read them below or add one }
The little perks are what make people happier when they are actually at work. It’s an immediate feeling, as opposed to the sort of global unhappiness that people get from not being paid well or not getting enough vacation. But taking away the watercooler is such a small expense that it seems hardly worth it for the excessive pissing-off it created.
Absolutely. It might have saved a thousand dollars or two, but that’s negligible. It definitely made a lot of people upset. The management in the division has completely changed since then and the attitude is much better. I joined this department at the right time.
of all the DUMB ideas!
water cooler removal, sheesh. would potentially lose more in medical liability, etc. as not enough water can lead to kidney stones among other things. two people in my office have had those (k. stones) and we always Have water….
certain people need even more water such as those who are pregnant.
doesn’t seem legal to not have some type of drinking water available.
I think it’s funny when companies make boneheaded decisions like that, pinching pennies while ignoring pounds is ridiculous.
I think the whole company benefits thing is a tricky thing to value. I think employees get used to benefits, expect them, and as a result don’t correctly the benefit and hence offer little return to the employer.
I suspect most of us with health insurance through our employer would not acurately value the benefit provided by the employer (ie the subsidy kicked in my the employer). Same with other benefits.
I have thought that employers could get alot more value out of offering benefits that were temporary in nature or one time perks offered by the company. I recognize I might perceive more value in them because I can’t assume I would get them or normally have to pay more for them so I can more accurately value the benefits.