[jiggy2011]

Once a company goes beyond a certain scale these perks can be delivered quite cheaply, at a much lower per employee cost than the employee would ever be able to get for themselves. This is one of the things a big company can use to entice people away from small startups where they might not get similar perks.

Having say a small fund to use for sporting activities can improve interpersonal relationships between employees and provide a way for new employees who might have relocated for the job a way to meet new people. The dividends this can pay can be well in excess of the costs.

[smacktoward]

> Once a company goes beyond a certain scale these perks can be delivered quite cheaply, at a much lower per employee cost than the employee would ever be able to get for themselves. This is one of the things a big company can use to entice people away from small startups where they might not get similar perks.

Or you could just, you know, pay them more.

[jiggy2011]

The extra that you have to pay somebody to compensate for the lack of say gym services could well be substantially more than it costs a larger company to deliver gym services themselves.

Consider that a gym membership might cost $50/month at a private gym because the gym needs to make a profit. There is also dead loss because of time travelling between work and the gym.

A company might well be able to provide on site gym services to employees at a much cheaper rate, especially if they already have space that is underutilised, they don't need it to be profitable and the facilities are so close that employees can just work out during their lunch break.

So with everything factored in you might be comparing $60/month to compensate an employee for a private gym vs $15-20/month with an employer provided gym.

The net result is healthier employees because more of them are likely to use the gym than if it was not provided and it's also a more efficient way to provide gym services if it is used by more than X% of employees.

[AndrewKemendo]

I think you missed a critical piece about economies of scale.

A larger company would likely be able to negotiate a lower per-instance cost for a "perk" than an employee would be able to get themselves. Hence if you "just paid them more" with the idea that they would be going to get that same perk, it would cost some multiple more given that they don't have the same purchasing power as the company.

You can disagree that they would go and choose the same perk, but this line of reasoning assumes that there is no consistency of preferences eg. Gourmet coffee or good food is fungible as a perk regardless of the provider.

[kelnos]

I do somewhat believe this, but this ignores the fact that people will trade money for time and convenience. Things like not having to worry about doing laundry, or cook, or pick a place to eat, etc. are often things people will "pay for" via a slightly lower salary.