Why companies started giving free perks to employees and what is happening to office culture today
Once upon a time, long ago, offices were places where people came solely for work — strictly and without additional“niceties.” However, in recent decades, many companies have been introducing the “friendly office” format, which symbolizes the new corporate culture and attracts employees for work tasks and comfort, care, and attention to detail.
How did the idea of free “office perks” for employees come about?
The practice of providing free treats and other bonuses at work began to spread thanks to technology and global IT giants. Among the pioneers is Google, which, back in the early 2000s, made a bet on corporate canteens with quality food, recreation areas, and even sleep pods. Their offices around the world became a kind of symbol of office paradise — and it attracted the best professionals, strengthening Google’s reputation as a company that values employee comfort.
The idea was quickly picked up by other companies: Facebook, Apple, and Microsoft started introducing free snacks, coffee, fitness rooms, and more. Such pleasantries seemed like “gifts,” but in fact, they became an element of a whole strategy to retain employees and increase their motivation.
Why do we need “office perks”?
Numerous studies show that a comfortable work environment can directly impact employee productivity and satisfaction. Here are a few statistics to back this up:
- Increased Productivity: According to data published in the Gallup report (2022), satisfied employees are more productive, with a 21% increase in productivity compared to coworkers who do not feel attached to their company. Engagement, according to Gallup, is directly related to workplace comfort and feeling supported. Source: Gallup — Employee Engagement Report 2022
- Stress Reduction and Well-Being: An article in Harvard Business Review highlights that programs focused on employee well-being, including office amenities, reduce stress levels. The HBR study states that companies that invest in mental and physical wellness programs reduce employee stress by 36% and improve the overall atmosphere. Source: Harvard Business Review — The Value of Employee Well-being Programs
- Increased Engagement: Forbes ‘ 2023 analysis shows that employees who feel supported and cared for by the company work 27% more engaged and are willing to spend more time on tasks. These companies also see an increase in positive feedback from employees and a decrease in turnover. Source: Forbes — Workplace Trends Report 2023
- Financial benefits to the company: A report by the Society for Human Resource Management (SHRM) indicates that investing in office amenities such as break areas, healthy food, and support programs reduces employee turnover by an average of 25%, which in turn saves the company significant hiring and training costs.Source: SHRM — Workplace Benefits Report
Thus, companies invest in employee comfort not out of simple generosity but to increase employee loyalty, improve productivity, and reduce the cost of recruiting new employees.
Friendly office: what is it?
The concept of a “friendly office” encompasses much more than just free coffee or cookies. It is an office environment aimed at improving employees’ psychological and physical comfort. A friendly office strives to create a space where people feel not like they are at “work” but like their second home. In such an environment, employees have more opportunities to socialize, share ideas, and relax.
Elements of a friendly office include:
- Open spaces and lounge areas for employees to informally socialize and collaborate.
- Meditation areas and sleep pods that allow employees to rejuvenate throughout the day.
- Provision of healthy food, including fruits and beverages, to keep employees physically and mentally healthy.
- Gyms and yoga rooms so employees can stay fit and feel better.
Intel’s example: when familiar perks disappear
In October 2024, Intel announced it was canceling free treats for employees in Israel. Fruit, tea, coffee, and, most importantly, free cookies disappeared from office kitchens, causing excitement among employees. The decision was made to optimize costs related to the financial crisis and mass layoffs.
Employees, accustomed to small “office perks,” perceived it as a loss of a part of their office life. It may seem like a free cookie is a small thing, but such bonuses play a key role in creating a positive atmosphere. When an employee feels valued and needed, it’s easier for them to spend more time in the office and be more engaged.
What does the future hold for offices?
With the recession and changing work formats, companies will continue to seek a balance between optimizing costs and maintaining a friendly atmosphere.
Many companies are reconsidering which “perks” are still relevant with the shift to hybrid models.
For example, while the emphasis used to be on food and beverages, mobile well-being programs and flexible working conditions are now more valued.
Perhaps companies will start to focus on employees’ psychological health, creating more personalized programs that address employees’ internal needs.
Conclusion
Companies give employees small but meaningful perks for more than just image. A friendly office is a powerful tool for increasing loyalty and productivity. It creates an atmosphere where employees feel valued, can focus on work, and interact with each other without stress. Even seemingly small things like free cookies can keep the mood positive, and their disappearance becomes a symbol of how the corporate culture is adapting to new realities.
For employees, a friendly office is not only a place to work but also an opportunity to develop and take care of themselves.
written by Alina Palii, marketing expert
