Why Your "Perks" Aren't Keeping Your Best People

Read time: 6 minutes

Hey, welcome back.

Last week, we dove into the art of true rest.

​You can read that (and all past issues, here).

By the way, if you're finding these insights helpful, I've started collecting all these tools, resources, and one-sheets in the ever-growing 'Science of Success' vault. Check it out here for additional materials on today's topic and more.

Today, we're tackling a thorny issue that's costing businesses millions:

Keeping Your Best People From "Firing" Themselves.

You know the scene. Fancy offices with killer views. Fridges stocked with craft beer and kombucha. Ping pong tables gathering dust in the corner. Companies are throwing money at these perks like there's no tomorrow.

And yet, their best people are still walking out the door.

Why? Because we've fallen into the perk trap.

The Perk Trap

Here's the thing: perks are like plastering a broken arm. They might look nice, but they don't fix the real problem.

I've been there. In my early days of building companies, I thought cool perks were the answer. Spoiler alert: they weren't.

I've learned that losing your best people is like cutting off your fingers one by one. Sure, you can function without your pinky, but keep it up, and suddenly, typing that important email becomes a Herculean task.

And it's expensive. Replacing an employee can cost up to 200% of their salary. Ouch.

The Real Issues

So what do employees actually want? It's not that complicated:

• Fair pay
• Good leadership
• Growth opportunities
• Recognition
• Work-life balance
• Autonomy

Notice how "free pizza" isn't on that list?

The thing is, these aren't perks. They're the foundations of a healthy work environment. Without them, all the ping-pong tables in the world won't keep your best people around.

What Actually Works

At Heights, we've learned (sometimes the hard way) that focusing on these basics pays off:

1. Paying people what they're worth. It's not about breaking the bank, it's about fairness. When people feel they're compensated fairly, they're not constantly looking over their shoulder at other opportunities.
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2. Investing in leadership training. Great leaders aren't born, they're made. And bad managers are the number one reason people leave jobs. We've made leadership development a priority, and it's paid off in spades.
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3. Creating clear growth paths. Your best people are ambitious. If they can't see a future with you, they'll find it somewhere else. We've worked hard to create clear, achievable growth paths for every role.
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4. Recognising good work regularly. It's not about big, showy rewards. It's about consistent, genuine recognition. A simple "great job on that project" can go a long way.
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5. Respecting people's time outside work. Work-life balance isn't a buzzword, it's essential for long-term productivity and retention. We trust our team to manage their time and don't expect them to be always on.
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6. Trusting your team to do their jobs. Micromanagement is a morale killer. We hire smart people and then get out of their way.
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The Challenge

Here's my challenge to you: take a hard look at your company. Are you addressing these core issues, or just throwing perks at the problem?

Try this:

• Ask your team (anonymously) what would make them stay long-term
• Look at your last few exit interviews for patterns
• Calculate how much you're spending on perks vs things like training and fair pay

You might be surprised by what you find.

The thing is, creating a place where people want to work isn't about being cool. It's about being fair, being clear, and being human.

It's not always easy. It requires consistent effort and a willingness to listen and adapt. But in my experience, it's the only way to build a team that doesn't just stick around but thrives.

To building teams that last,

Dan

P.S. If you're struggling with retention, remember: people don't leave good leaders. Focus on becoming a better leader, and the rest will follow.

SOS (Science of Success) Curated:

LinkedIn of the week: Stop Throwing Money at Employee Perks That Don't Matter​

Podcast of the week: How to Start a Business With Zero Skills (And Make It Work)​

My Tweet of the week: We separate mind and body as if they're different systems​

The Hidden Cost of Employee Turnover

A study by the Centre for American Progress found that replacing a single employee can cost anywhere from 16% to 213% of their annual salary, depending on their role.

What's more, the study revealed that this cost isn't just financial. High turnover rates were linked to decreased productivity, lower morale, and loss of institutional knowledge.

It's a stark reminder that retention isn't just about keeping people around – it's about protecting your company's health, wealth, and future.

Read more: https://www.americanprogress.org/article/there-are-significant-business-costs-to-replacing-employees/​

Savile Row is one of the most prestigious shopping streets in London, and with just £10,000, Sean Dixon transformed his brand, Richard James, into one of the city's most sought-after tailors.

From designing Sir Alex Ferguson's iconic coat to hosting Elton John and Oasis in his shop at the same time, Sean shares the journey of relentless hard work and dedication it took to break into such an elite market.

He reveals how Richard James became a magnet for A-list celebrities and the pivotal moments that helped shape the company's success in the world of luxury fashion.
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​Listen in to learn and develop your thinking...​

Until next week - smash your success,

Dan

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1-1 Coaching with Dan

In my goal to help more entrepreneurs/people who are looking to level up their careers, I've just started taking 1-1 consulting calls (only 1 a week)

Why book a call? Some of my expertise/success:

I've built 5 startups. 1 win, 1 fail, and 3 still going.

E-Commerce: Heights — with revenue over $15M a year.

Community: Foundrs, one of the UK's top founder communities

Podcasting: Leaders Media - bootstrapped media company that makes the UK's top business podcasts, Secret Leaders, with over 50M downloads.

Health/Mental Health: Managed to overcome burnout, insomnia, depression & anxiety in pursuit of success as I talk about in my interview with Steven Bartlett on Diary of a CEO​

Angel Investing: I've invested in over 90 startups

Coached & Mentored: Certified coach & done lots of mentoring

Personal Brand: Have grown to 178k on LinkedIn and X (Twitter) in the past 12 months

So if you're interested in booking a session with me to talk all things business or building a personal brand, book for 30-minutes or 45-minutes. (limited spots).

Science of Success Vault

I'm building a vault of valuable tools, resources, and one sheets that I hope help you succeed.

These will be stored in the ever-growing 'Science of Success' vault — you can always access that here

Want to take your success (even more) seriously? 👇​
🧠 Fuel your brain and feed your gut, try Heights here (use code 'SOSDMS' for 15% off your first month of any subscription

🎧 Check out my podcast Secret Leaders here​

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