The premium beverage bar seemed like a brilliant idea. Artisanal teas, freshly ground coffee beans, and sparkling water on tap would surely boost morale at the Bengaluru corporate office. Instead, it created chaos. Fifteen-minute coffee breaks stretched to 45-minute socialising sessions, queues lengthened, supplies vanished, and productivity plummeted. Within weeks, management scrapped the initiative entirely.
This cautionary tale reflects a broader challenge facing companies worldwide: the delicate balance between empowering employees and overindulging them. As workplace perks have evolved from simple benefits to elaborate lifestyle enhancements, many organisations are discovering that good intentions can produce unintended consequences.
The evolution of expectations
Corporate perks have undergone dramatic transformation over recent decades. “Perks were once a way to attract and retain top talent, especially at senior levels,” explains Ramesh Shankar, a seasoned HR leader and former CHRO, Siemens India. “They were not only tax-efficient but symbolic of prestige—such as club memberships or company-provided cars. But the landscape has changed.”
“Perks were once a way to attract and retain top talent, especially at senior levels. They were not only tax-efficient but symbolic of prestige—such as club memberships or company-provided cars. But the landscape has changed.”
Ramesh Shankar, a seasoned HR leader and former CHRO, Siemens India
Today’s workforce values flexibility over standardised luxuries. Fixed benefits like club memberships seem outdated when employees have diverse preferences—from early morning yoga to late-night gaming. Companies increasingly offer cash allowances rather than predetermined perks, allowing staff to choose what suits their lifestyles.
“What was once a privilege has become passé,” notes Shankar. “Even cars—once a prized benefit—are now being replaced with car allowances, letting employees choose what suits them.”
However, personalisation hasn’t eliminated problems of overconsumption and misuse.
The 80-20 problem
Anil Mohanty, chief people officer, DN Group, has witnessed how well-intentioned generosity can spiral into exploitation. At a previous company, management introduced an “open pantry culture” with fresh fruits, biscuits, and juices stocked twice daily on each floor.
“A small group of employees would stalk the pantry refills, scoop up items in bulk, and hoard them—leaving little for others,” recalls Mohanty. “It became a morning raid. Some treated it like a hunger strike, taking 10 items each and stashing them in drawers.”
“Many organisations confuse headcount with true talent management and mistakenly believe perks alone drive engagement. Most companies don’t even know what employee engagement truly means.”
Anil Gaur, a senior HR leader and former CHRO of Akums Pharmaceuticals and Uniparts
The company eventually imposed quantity limits and timing restrictions, but the damage was done. “Anything in excess has an impact,” observes Mohanty. “The 80-20 principle applies—20 per cent of employees can create negative consequences for the remaining 80 per cent.”
His lesson: “Free perks shouldn’t be an invitation to freeload. Give what is sustainable and manageable. Unplanned generosity is a recipe for chaos.”
Intent versus impact
The proliferation of elaborate perks—lavish cafeterias, unlimited leave, gaming zones—stems from genuine desires to enhance engagement and retention. Yet many initiatives fail because organisations misunderstand their purpose.
“Anything in excess has an impact. The 80-20 principle applies—20 per cent of employees can create negative consequences for the remaining 80 per cent.”
Anil Mohanty, CPO, DN Group
“Many organisations confuse headcount with true talent management and mistakenly believe perks alone drive engagement,” warns Anil Gaur, a senior HR leader and former CHRO of Akums Pharmaceuticals and Uniparts. “Most companies don’t even know what employee engagement truly means.”
Without clear performance expectations and accountability frameworks, perks become distractions rather than incentives. The beverage bar exemplifies this disconnect: what began as a morale booster morphed into unregulated breaks and resource waste.
Gaur highlights a revealing productivity gap. In a typical nine-hour workday with breaks, expected productive time is 480 minutes. However, studies suggest actual productive work often falls to just 250-300 minutes. “The disconnect lies in perks being offered without linking them to performance milestones or consequences,” he explains.
This creates environments where comfort overshadows discipline, and employees view perks as entitlements rather than performance-linked rewards.
Cultural challenges
The problem is particularly acute in contexts where time management and accountability remain ongoing challenges. Generous perks without corresponding performance frameworks create mismatched expectations between comfort and responsibility.
When employees expect rewards regardless of contribution—viewing increments and promotions as automatic rather than earned—perks reinforce rather than correct problematic attitudes.
Finding balance
Despite these challenges, all three experts believe perks remain valuable when properly managed. The key lies in boundaries, transparency, and cultural alignment.
Companies must clearly communicate what’s offered, who it’s for, and how it’s managed. They should prepare for potential morale dips when perks require withdrawal due to misuse, making employee involvement in policy design crucial for maintaining transparency and shared ownership.
Effective perks should be meaningful and aligned with company values—curated learning budgets, wellness reimbursements, childcare support, or travel stipends that are customisable, accountable, and well-communicated. Crucially, they should be framed as enablers rather than entitlements.
Building collective responsibility is equally important. When employees understand that benefits are shared resources rather than personal bonuses, they’re more likely to self-regulate. This requires trust, ongoing conversations, and gentle accountability systems—subtle nudges that reinforce fairness rather than heavy-handed policing.
Lessons learned
The Bengaluru beverage bar’s failure offers valuable insights. Perks can indeed inspire, reward, and retain talent, but they’re not magic solutions. When mismanaged or misunderstood, they can foster discontent, create divisions, and undermine the very culture they aimed to enhance.
The solution isn’t to eliminate perks but to design them thoughtfully, monitor them empathetically, and evolve them maturely. Successful organisations treat perks as cultural reinforcement tools rather than standalone benefits—carefully aligned to inspire responsibility and boost performance.
After all, whilst a well-made espresso might energise a morning, it’s the underlying culture of trust and accountability that fuels long-term success. In the delicate dance between employee satisfaction and organisational effectiveness, getting the choreography right makes all the difference.