Biotech companies are among those that have challenges recruiting employees with technology skills that are in high demand. Their smart talent management and total rewards program have prevented employee shortages by treating employees with respect, sharing the success stories of the lifesaving drugs they produce, sharing financial success with bonuses, rewards for longevity, onsite child care, and improving quality of life by sending employees home with prepared dinners. 

Genentech uses genetic information to “discover, develop, manufacture medicines to treat patients with serious or life‐ threatening medical conditions,” according to the company website. The company seems to have a permanent spot on Fortune’s “Best Places to Work” and also receives “Best Places to Work” honors from Working Mother, LGBT Equality, and Computerworld. The reasons for this recognition are the important work that they do and the strong company culture that values equality and communication. Any discussion of how great it is to work at Genentech always circles back to the benefits that show a real respect for employees. In addition to providing retirement and health care benefits to employees who work at least 20 hours a week and their dependents, they provide family‐friendly perks such as unlimited sick leave, personal concierge service, flexible work scheduling, childcare, nursing mother’s rooms, onsite nurses, adoption assistance, and company‐sponsored family events. The list of innovative benefits goes on to include unusual benefits such as haircuts, pet insurance, weekly car washes, and $10,000 annual tuition reimbursement! Zappos, the online shoe retailer, offers perks that match their fun‐loving culture such as pajama parties, nap rooms, regular happy hours, and a full‐time life coach.

Have these benefits worked for Genentech and Zappos? If you translate longevity to morale and loyalty, you’d say they have. Both boast low turnover rates and high employee ratings for workplace satisfaction.

Questions: 

1. Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM at Genentech and Zappos.

2. Explain how Genentech and Zappos use voluntary employee benefits as a motivating tool.

3. Research: Review the findings of three different lists of excellent workplaces such as “Best Places to Work.” What strategic role do benefits seem to play in these workplaces? Do any specific benefits seem to be more important than others? Which ones?