Nowadays, more employees are demanding cash for overtime rather than a plate of barbecue or a microbrew. They want time off instead of must-attend company picnics on the weekend to play paintball. Not long ago, it was that fun environment and buckets of stock options that led many workers from old-line companies to dot-com start-ups. But since the stock market took a dive in April and many Internet companies fell out of favor with investors, more employees are finding that the start-ups aren't yielding the riches or satisfaction they had hoped for. Suddenly, that culture of bosses who don't discipline or provide structure, cubicles that double as kennels, endless hours at offices equipped with pool tables, beanbag chairs, jukeboxes and in-house bars is pushing some Internet employees back into the traditional workplace. It's also forcing the companies to consider growing up.
"I don't miss the foosball, I don't miss walking around in my flip-flops,'' said Tracey R. Collins, a 22-year-old veteran of two Internet start-ups.
"There's something to be said for a little structure and stability,'' said Collins, now an associate at Pan Communications in the US. "I like knowing I can leave the office at 5:30 p.m. or 6 p.m. and that it's still going to be there.''
As the 10th employee of LifeSimple.com, an online scheduling site, Collins worked long hours, holidays and weekends. But in September 1999, the company went out of business without any warning.
Collins then joined Computer.com as the third employee. The Internet computer retailer launched during the Super Bowl in 1999 with an expensive ad campaign. Again, Collins worked through Thanksgiving, Christmas and New Year's. But she quit in May to join a traditional marketing and public relations firm.
Both Lifesimple and Computer.com had very relaxed work environments. People brought their dogs to work. They climbed up onto the roof with their laptops and worked while sunbathing. Employees had meetings while playing foosball. People walked around barefoot.
"The free-spirited dot-com culture came with a price tag that was basically your life,'' Collins said. "I'm just so happy to be back to business.''
Collins is not alone. The downdraft in the market is causing more people to move from the new economy to more stable companies, said Rick A. Smith, a headhunter at Spencer Stuart in the States. And Internet companies are becoming more selective in hiring executives, he said.
"The type of talent companies are looking for is a mix of new-world and old-world experience,'' Smith said.
The type of executives Spencer Stuart is recruiting has changed from people in their late 20s with three or four years of experience to candidates in their 30s or 40s with 10 or more years of work experience, Smith said.
"In general, there has been a dramatic maturation in the marketplace,'' Smith said.
The cappuccinos and microbrews may still be flowing freely at many dot-coms, but some are adopting more corporate-like structures to ensure too much fun doesn't come at the expense of profits and growth.
Take Dash, a fast-growing Internet advertising company in New York. It raised US$50 million in venture capital. But even during the high times, it didn't spend its millions on Super Bowl ads or company parties, said 31-year-old Daniel Kaufman, one of the company's founders.
Dash has been run more like a corporation because the four founders have all had other Internet companies and they felt they needed some structure to succeed, Kaufman said. The company has a relaxed environment. There's no dress code, and dogs are allowed to roam freely. But it doesn't have on-site manicurists or massage therapists.
What sets this dot-com apart from many other Internet start-ups is that it has always had a human resources manager, a corporate attorney and policies regarding standards of conduct. And every employee gets a handbook that spells out corporate policy.
"It's a pretty serious place and people work pretty hard,'' Kaufman said. "We're not throwing keg parties on Friday, but we still go out and have a lot of fun.''
At ELetter, a US-based Internet sales and marketing company, lavish and kooky perks are out and old-style benefits are back in vogue, said Manish Mehta, the company's 32-year-old president and chief executive.
"These days it's not the perks that will get you the people and keep them,'' Mehta said. "Employees want to know that the company has a solid business plan and that it makes money.''
ELetter still offers employees on-site massages and caters lunch every couple of weeks. But it has done away with extravagant off-site parties, Mehta said. Now, the 40-employee company rewards people for their hard work with money and time off, he said.
Less than 3 percent of all Internet companies spend money lavishly on parties and other perks, said Tom Kippola, managing director at marketing strategy firm The Chasm Group, and a venture partner at Voyager Capital.
"Most companies are responsible about their spending,'' he said, emphasising that a little fun is OK.
