A new startup is leasing Teslas for its employees. Practichem, a startup based in North Carolina, recently reserved the new Tesla Model 3 for all of its 15 employees. All I can think is…WHERE DO I SIGN UP?
“If you’re one of the brave souls trying to launch a startup and offering employee perks is in question, think seriously about it.”
I’m a big Tesla fanboy, and have been since I saw the original Tesla Roadster in a parking garage in San Francisco. I don’t own one, but that’s because I have yet to hit big with a startup…these things take time, right? Imagine my dismay when I read about another start up out there offering Teslas as a signing bonus.
Startups offering cool perks is not a new thing – free massages, gym memberships, bar tabs, paid vacation on your birthday, etc. But is it really worth it? An article in the San Diego Business Journal looked at the investment versus the returns of employee perks at Hunter Industries. Hunter Industries has a great company culture and offers things like a full indoor gym and sport fields (which they frequently use in company soccer match). While they train their employees so they can be successful anywhere they go, they only have an attrition rate of 4%. Their employees don’t want to leave.
When you factor in the cost of recruiting, advertising, and training new employees, hiring is very expensive. Keeping employees around vastly outweighs the cost of keeping a full fitness center and offering more vacation. While it’s slightly harder to measure, the company also has a much higher rate of productivity relative to many of their competitors. This allows them to generate more revenue and profit for the company.
If you’re one of the brave souls trying to launch a startup and offering employee perks is in question, think seriously about it. While there are plenty more examples, it is clear that employee perks can help with retention, and keeping good employees around will vastly outweigh the investment costs. Just make sure that if you’re going to be offering your employees a new Tesla, hit me up.
Does your company give some good perks? Please share in the comments below.