Business Unusual: COMPANIES ARE ENHANCING BENEFIT TOKEEP EMPLOYEES HAPPY.

In today's thriving economy with its low rate of unemployment and high rate of employee turnover, there is nothing "as usual about business any more.

Companies are competing for top people with sophisticated skills who are demanding higher salaries, bigger benefits and greater respect for their desire to have a 'say' in the business and a life outside the office.

"Nowadays, a business has to do far more than what was expected only a year ago," says Karen Anderson, vice president of member services for Employer's Group, the nation's oldest and Largest human resource membership organization. "To succeed in today's labor market, companies are offering employees a respect for work/life balance, a greater sense of organizational purpose, support for diversity, participatory management paradigms, a learning environment, bonus plans -- plus competitive salaries and benefit packages."

What Employees Really Want

Many companies are turning to surveys to find out what it will take to make their employees happy and keep them on the job. According to a recent survey conducted by FleetBoston Financial, 64 percent of workers "prefer more time over more money." A caring boss is also high on the list of employee priorities.

Deloitte & Touche, a national professional services firm, has been quick to respond to employee preferences and expectations by changing, enhancing and adopting new benefits and policies. The company offers domestic partner benefits, adoption assistance, on-site child care during busy seasons, plus flexible and reduced working hours that enable employees to balance work and family life without hurting their career growth. And that's just for starters.

"One of the enduring myths about employee retention is that traditional rewards -- pay and benefits -- are the sole drivers of an individual's decision to stay with a company," said Mitch Stern, senior manager of human capital advisory services for Deloitte & Touche.

Getting It Right -- Right from the Start

Today's Gen-Xers are more likely to be risk-takers and job hoppers. But they'll stay longer if the job fits -- and expands -- their knowledge and skills and the corporate culture matches their style.

Patti DeDominic, CEO of the staffing firm PDQ Personnel Services, Inc., recommends a five-part hiring process to make sure there's a great match between the person and the position:

1. Write a thorough job description

2. Reach out to as many applicants as possible

3. Use the same interview questions with every candidate

4. Lay out your expectations -- don't oversell or undersell the position

5. Review new employee progress on a regular basis

Yolanda Williams, director of human resources at Alert Staffing, stresses the importance of giving applicants a realistic view of the work environment so there are no surprises once they start working. In addition, companies should pay special attention to their orientation program since an employee's first days on the job can make a lasting impression. Treating all employees with dignity and respect and providing valuable training are two more suggestions Williams makes for keeping employees content.

Perking Up Your Employees

This tightest job market in years means that employers have to be unusually flexible and highly creative to attract and retain outstanding employees. Some of the more unusual benefits, which are becoming almost commonplace, include pets in the office, financial and legal services, auto insurance, telecommuting and extended vacations.

Rhythm & Hues, the Academy Award-winning film production, character animation and visual effects studio in Marina del Rey, provides its 300 employees with an awesome array of benefits: Breakfast and lunch are served every day and there is a barbecue on Fridays. Two chiropractors and a masseuse come on site every week to offer relief from aches and pains. Everyone receives plastic surgery benefits and $760 per year for educational expenses -- whether or not it's work related. And the artists and technical employees whose work is most demanding receive nine weeks of paid vacation every year.

Deloitte & Touche, recognized by Fortune magazine for three consecutive years as one of the "100 Best Companies to Work for in America," now offers help to other companies seeking to develop human resource programs that attract and retain outstanding employees.

While larger companies typically can afford to offer more extravagant benefits, smaller companies may have the advantage of being more flexible to innovative new trends and meeting their employee's needs and preferences -- like the preference for autonomy on the job and the need for more time off it.

"What we have found is that intrinsic rewards such as the challenge of the job, the vision and capability of the company's leadership, and the opportunities to grow and learn, have a more significant impact," Stern says. "Of course, pay and benefits are a factor -- but perhaps not to the extent that people have imagined."

* Telecommuting

Popular Benefits

* Flex time

* Employee training programs

* Tuition reimbursement

* Child care

* Domestic partner benefits

* Allowing pets in the office

* Extended vacations

As president of Corporate & Clinical Consultants in Century City, Dr. Lilli Friedland and her staff partner with executive teams to develop supportive corporate cultures and systems. In her recent conversation with Business Trends, Dr. Friedland offered insight on how to improve the bottom line by enhancing employee performance and job satisfaction.

Greating a Healthy Workplace

Q. How does a high rate of turnover impact a company's profitability?

A. In addition to the direct costs of hiring and training new staff, management is becoming increasingly concerned with the indirect costs resulting from frequent staff changes. These include the impact on morale, the loss of informal networks and institutional knowledge plus the challenge of acclimating customers and distributors to new individuals.

Q. Are there any reliable keys/or keeping employees on the lob?

A. Today, many workers prefer education and career development opportunities over stock incentives and even pay-for-performance programs. They also want time to pursue outside interests.

Given these trends, healthy companies are offering employee training programs and flex time which are more effective retention tools than cash payoffs. Studies show that when companies help employees to balance their lives between job and family without penalizing their career development, people are less likely to leave for a few more dollars.

Q. How can a company -- large or small -- excel in today's market?

A. If breakthrough results are desired -- not just incremental changes but a whole new level of performance -- the company's leadership will focus and promote the strategic direction and vision of the company as well as the involvement of the entire staff. The company that prioritizes the career development and balanced life issues of all employees will show growth on specific performance measures such as profitability, market share, innovation, quality of product and sales growth. This kind of culture develops staff loyalty and retention, turns an ordinary business into an employer of choice and increases organizational growth and profitability.