There are some people who will take personal advantage of every situation. There are some people in whom the dark side wins. Your company should rigorously weed these people out. You can do it with compassion (remember, it was your mistake to hire them in the first place); but it should be done.

Fortunately, these people are rare. And we don’t base this claim solely on a personal faith in human nature.

6.4. Fuck Massages

“Getting benefits right is crucially important for your team and their families. You want to support the people you work with and make their lives better. Benefits allow your team and their families to stay healthy and happy and achieve their financial goals. This is where you should be spending your money.

Perks are a very different matter. In and of themselves, perks are not a bad thing. Surprising and delighting your team is wonderful and often necessary. But when perks are always free,

appear constantly, and are treated like benefits, your business will suffer. An oversupply of perks hurts a company’s bottom line and, contrary to popular belief, employee morale. Some people can become obsessed with what they can get rather than what they can do—believing perks to be a right, not a privilege. Then when times get tough or when the perks don’t scale, they become outraged that their “rights” are being taken away.

And if the primary way you’re attracting talent is through perks, then times will absolutely get tough.

Instead of making the office so luxe that employees would never leave, we spent our money on meaningful benefits for them and their families—better health care, IVF, the stuff that really changes people’s lives.

When we handed out perks, I wanted them to be purposeful in the same way. So we didn’t try to trap people in the office—we rewarded employees by paying for dinner out with their families, or a weekend away. And we were happy to throw serious cash at stuff that genuinely improved people’s experience, that brought them together and exposed them to new ideas and cultures and turned coworkers into friends.

These aren’t mere gripes. They are evidence of a fundamental disconnect in incentives. Employees in market-facing roles know that if they fail to satisfy user needs, they’ll get fired by their customers. Corporate staffers, by contrast, can only be fired by their overlords, so that’s where their loyalties lie. Internal administrators suffer little or no penalty when they inflate costs, offer substandard services, or insist on compliance at any cost.

Last, when it comes to the key people who absolutely drive performance, great managers/coaches simply do whatever it takes to keep them on board, including offering a customized compensation package. If one person wants less base and more incentive-based pay, so be it. If another wants more time off, let it happen. “Fairness” does not mean “sameness.” You need to be creative and flexible in order to keep your top talent happy, from a compensation-package perspective.

Wages are one of your biggest expenses and should be used strategically to differentiate your firm from the competition.