Recession Strategy: Which Perks to Cut

Cutting employee perks could be a smart way to save money during this economic crisis, but managers should choose wisely

Before taking the more drastic measures of cutting salaries or conducting layoffs, companies routinely target employee perks—free coffee and snacks, corporate cars, nights out on the town—where the return on investment is minimal, or so corporate bean-counters think. A recent survey from outplacement firm Challenger, Gray & Christmas in Chicago found that 20% of companies have eliminated perks to save money during the current economic crisis, and another 10% are considering doing so.

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