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Genentech and Zappos Case Study

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advantage of providing benefits to employees is to reduce turnover rate and to employ new highly skilled workers at a competitive rate compared to other competition. Giving good benefits is the foundation of keeping good skilled workers. With a lower turnover rate compared to other companies with these benefits, it will allow employees to build their career within that company as provided examples by Genentech and Zappos. Also since a paycheck is not powerful enough anymore to keep skilled workers from leaving, adding additional packages for the organization's employees, gives the feeling of perks. For example, Hewitt Associates was a company that managed benefits for large corporations. One of the benefits of working at Hewitt was its free lunch program that was provided to every Hewitt employee. The main cafeteria in the building provided free lunch and breakfast every day. It was a great way to keep employees happy and to recruit new skilled workers. When Hewitt ceased this benefit, employees started leaving the company for higher pay and the company's reputation went with it.

2. Genentech is providing benefits such as "Unlimited sick leave, concierge service, child care, etc.” These great benefits give the employee a piece of mind that helps alleviate the stresses that affect them daily. Zappos on the other hand provides benefits that are more entertaining, for example, "pajama parties, nap rooms (my favorite), regular occurring happy hours, and a life coach." if more companies provided these kind of extraordinary benefits to their employees, there would be less and less people looking for positions or defecting to competitive companies in their respective industries. Hewitt Associates breakfast and lunch benefits really kept their employees happy. Unfortunately is not to be , and is eventually taken away costing the company millions of dollars a year to

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