How Much Does a Free Lunch Cost?

In the tech world, there's an unwritten law that new employees get taken out for lunch on their first day. Since people in this industry tend to work long, irregular hours and often forsake normal sustenance, the 'first day lunch' has evolved as a kind of tradition that helps the new hire get integrated into the department, get to know coworkers a little bit, and generally feel good. The lunch never happens at any place fancy - most often it's the local Montana's, Applebee's, or whatever similar chain is in the area.

Cost to company: About $100, depending on the size of the team involved.

Value to company: Very high, since it speeds the ramp up of the new hire and gives existing staff a bit of a treat as well.

Seems simple enough, right?

A colleague of mine recently started work at a tech company in this area, and wasn't taken out for lunch on the first day. The other managers were either busy with other things and skipped lunch, or had other plans already. In fact, no one brought up the subject at all on the first day, or any day since - it hadn't crossed their minds that they might do this. 

The company ended up saving the hundred bucks and managed to get a little more (short term) productivity since more people were working through lunch.

However, what did it really cost them?

My friend got a very clear picture of what this company's priorities are, and how much they value their employees. He certainly DIDN'T come home feeling like part of a team, and could barely remember the names of his coworkers. Not a great way to start a relationship with a new company.

After spending several months filling this position (and probably several thousand dollars as well), this company now has a new hire who's disenchanted and skeptical after working there for all of 8 hours. How long is he likely to stick around? What are the chances that he'll do extra work evenings or weekends? What is he going to tell other people?

This company is at a big disadvantage with a new hire that they presumably had a lot of faith in (after all, they did pick him over other the candidates). They may be able to turn it around, but first impressions matter and they're going to have a tough job to overcome those.

What will most likely happen is my friend will stick around for 3-6 months until he finds something better and then he'll be gone. The company will be scratching their heads wondering why and complaining about how tough it is to find and keep good people.

This particular story strikes me as a case of incredible stupidity, since everyone in tech knows you have to provide a free lunch for new hires! I'm stunned that there are companies out there that have missed that.

Of course, in the world of transport you're probably not taking drivers out to lunch on the first day. It's not a bad idea, but probably not feasible logistically. However, this story is still a good example of how small things can make a big difference. There are lots of little things can be done pretty easily and cheaply that can dramatically impact someone's impression of their workplace. By getting in the habit of doing those things, we can see some big differences in overall employee attitude, retention rates, and productivity.