Employee Experience Insights

Our insights, observations and thoughts on all things employee experience

Is it ever ok to remove employee perks?

Mar 6, 2025 | Employee communications, Employee engagement, Employee experience, Psychological contract

Manchester United Football Club recently hit newspaper headlines when they announced the closure of their staff canteen. The UK-based Guardian newspaper led with ‘Let them eat fruit’ – a reference to the perk of a hot meal and tea or coffee being replaced with fruit.

The closure was part of a range of cost-cutting activities designed to stem the flow of five years of financial losses. Many described the canteen closure, which the Club was predicted to save £1m, as ‘embarrassing’ when compared with the average footballers’ salary.

So, this led us to consider – is it ever okay to remove employee perks? The reality is that yes, there are times when organisations may need to reduce or remove perks, especially in times of financial difficulty. However, the way these changes are managed can have a significant impact on employee morale and the overall employee experience.

Here are some things to consider to help manage the removal of employee perks more effectively:

  1. Understand the Impact on Employees

Before making any decisions, consider how the removal of perks will affect employees. Perks like free meals, gym memberships, or additional leave may seem small, but they can play a huge role in how valued employees feel. Engage with staff to understand what the perk means to them and the wider impact on their wellbeing, productivity, and financial situation.

  1. Explore Ways to Offset the Negative Impact

If perks need to be removed, think about what could be offered instead. This could be smaller, lower-cost benefits such as additional flexible working options, employee discounts, or wellness initiatives. Small gestures can show employees that their wellbeing is still a priority, even during challenging times.

  1. Consult with Employees

Where possible, involve employees in the decision-making process. Seek feedback through surveys or focus groups to understand which perks matter most to them. Transparency in how decisions are made helps to build trust and shows that the organisation values its people.

  1. Communicate with Care and Empathy

How changes are communicated is just as important as the change itself. Be open and honest about why the decision is being made, explain the business rationale, and acknowledge the impact it may have on employees. Show empathy and offer reassurance that the organisation remains committed to supporting its people.

  1. Reinforce the Bigger Picture

Link the decision to the organisation’s long-term vision and goals. If perks are being removed to safeguard jobs or secure the organisation’s future, helping employees understand the bigger picture can create a sense of shared purpose.

By taking a thoughtful and transparent approach, organisations can navigate difficult changes while maintaining trust, morale, and a positive employee experience.

If you want any help to improve your employee experience or have a potentially difficult future change to your employee experience, get in touch for a chat.