The Price of Perks: How Workplace Generosity Impacts Valuation
Great workplaces don’t happen by accident. They’re built by strategic leaders who care about their people, invest in their development, and cultivate an environment where teams thrive. And in financial planning, where client trust and relationships are everything, a strong culture and staff tenure is a competitive advantage.
But there’s a risk.
We've seen business owners pour resources into creating exceptional workplaces—offering perks like extra leave, fully stocked kitchens, massages, flexible work arrangements, and even company cars. The intention is clear: attract and retain top talent, build loyalty, and foster a workplace where people genuinely want to be. However, without tying these initiatives to performance and applying commercial discipline, these well-meaning investments can jeopardize the long-term sustainability of the business.
The key to getting this right? A well-structured Employee Value Proposition (EVP).
A thoughtful EVP ensures that workplace benefits aren’t just generous but also strategic aligned with culture, brand, and business goals. Firms that strike this balance don’t just attract top talent; they create environments where employees stay engaged, deliver exceptional client outcomes, and contribute to long-term business success.
A Sustainable Workplace Must Also Be Commercial
Culture isn’t just about generosity—it’s about balance. A business can only be great if it’s sustainable. A strong EVP helps ensure that workplace benefits aren’t just well-intentioned but commercially viable. If employee perks and benefits aren’t matched with clear expectations around performance, efficiency, and client outcomes, they become entitlements rather than incentives.
If employees can choose when and where they work without clear expectations around availability, how do you guarantee timely client responses and seamless team collaboration? If company-funded perks like vehicles are provided without measurable performance benchmarks, are you driving productivity—or just inflating overheads without return?
This isn’t about being stingy—it’s about ensuring the business can continue to thrive while rewarding employees in a way that aligns with commercial reality.
What Happens If We Get It Wrong?
Let’s consider the endgame: succession planning. Many financial planning firms are built with the intention of eventual sale. If the business is overly generous, with weak commercial guardrails, a potential acquirer will see these ‘extras’ as unnecessary costs—and they will strip them out post-sale. That’s when you see staff leaving in the clawback period, clients feeling the impact of instability, and the very culture you worked so hard to build unraveling.
The valuation impact of these benefits also needs to be considered. If we are committing to ongoing spending, say $50,000 p.a. in additional employee benefits, without any increase in revenue, that’s a $250,000 to $300,000 impact to the average financial planning firm—based on a valuation multiple of approximately 5.5 to 6 times these costs.
And even if a sale isn’t on the horizon, the reality is that a business must be commercially strong to survive long-term. If rewards aren’t tied to performance, what incentive does a team have to drive results, win clients, or increase efficiency? The best cultures create a sense of shared purpose, where rewards and expectations are aligned—not disconnected.
Culture + Commerciality = Long-Term Success
A great workplace isn’t just about giving—it’s about creating a culture where generosity is met with accountability.
Want extra leave? Show that you consistently go above and beyond for clients.
Want workplace flexibility? Demonstrate that results won’t suffer.
Want a high-trust environment? Deliver high performance.
A strong EVP doesn’t mean giving endlessly—it means designing benefits that drive engagement, attract top talent, and support business goals. The best firms get this right by ensuring their workplace perks are strategic, sustainable, and aligned with commercial reality.
As financial planners, we advise clients on making sustainable financial decisions for their future. We need to apply the same logic to how we build our own businesses.
To understand the valuation impact of your employee value proposition, or where you sit compared to other financial planning businesses, contact our office. And remember, Generosity without commercial acumen isn’t leadership—it’s a liability.
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