From Van Marken to Netflix: the history of secondary benefits (1880-present)

This article is about the history of secondary benefits. Using key questions, periods, and events, we look back at the origins of these benefits and how they have evolved over the years, from the late 1800s to the present day.

To compile this article, we drew on various online sources as well as conversations we held with HR professionals.

When, why, and by which organisation were secondary benefits first introduced?

A brief history lesson reveals that the founder of the Nederlandsche Gist- & Spiritusfabriek (now part of DSM) and the Nederlandsche Oliefabriek (later Calvé) was the first social entrepreneur in the Netherlands. He was Jacques van Marken, a Delft native born in 1869. Both companies grew rapidly thanks to Van Marken's passion and drive for innovation. For him, labour and capital were equally important: he was the first employer to provide his staff with health insurance and a pension scheme. He also ensured that affordable workers' housing was built, as he believed that good housing was essential for good work.

A key driver behind the rise of secondary benefits was that much of the work on offer looked alike. In sectors where pay and job roles barely differed between employers, companies sought other ways to stand out. Offering additional perks thus became a strategic tool for attracting and retaining staff.

The timeline of changing working hours

A major turning point in history regarding working hours came when Henry Ford decided in 1922 to introduce the 8-hour working day in his factories. Until then, most employers still believed in the idea that more hours worked meant more produced. The decision by several major employers to move away from this thinking marked a genuine shift in mindset. Ford also reasoned that more leisure time meant his workers would have more time to spend money, ideally, of course, on a shiny new Ford ;).

Much also changed in working hours after 1922, including during a period of war that led to people working longer hours once again. The next major breakthrough in the Netherlands came in 1961, when the country transitioned to a five-day working week, something that had already been standard practice in the US. This new legislation also freed up more time for spending in the Netherlands, which, boosted by rising wages, is certainly what happened.

From factory floor to collective agreement: the institutionalisation of benefits (1950-1980)

After the war, the idea grew that government and employers share responsibility for people's financial security. In the Netherlands, this took shape through collective labour agreements (cao's) in which an increasing number of secondary benefits were enshrined:

• Holiday pay (introduced in 1968)
• Pension accrual
• Travel expense reimbursements
• Year-end bonuses
• Collective insurance schemes

This period marked the heyday of the welfare state, during which benefits became collective and standardised.

The role of trade unions was also crucial during this period. They played a major part in putting secondary benefits on the map, not only through collective agreements, but also in dialogue with the government. Fixed holiday entitlements, continued pay during sick leave, and supplementary pension arrangements were, in many cases, the result of years of union advocacy.

Individualisation & flexibility (1990-2010)

From the 1990s onwards, the demand for tailored arrangements increased:

• Cafeteria model: employees gain more flexibility in choosing their own benefits
• Life-course savings schemes, sabbatical leave, additional training opportunities
• HR becomes a strategic partner in attracting and retaining talent

Secondary benefits are increasingly used as a differentiator: a way for employers to position themselves positively in a tight labour market, rather than simply meeting the standard.

European legislation also began to play a role during this period. EU directives on minimum leave entitlements, equal treatment, and part-time work drove harmonisation and strengthened employees' rights in many areas.

The new era: experience, wellbeing & workplace happiness (2010-present)

In recent years, a new development has emerged: benefits are no longer seen as "extras", but as part of the broader employee experience.

• Vitality budgets, remote working allowances, mental health support
• Younger generations expect personally relevant benefits
• Transparency is becoming increasingly important: people want to know what they're getting, and why

Today's secondary benefits are a blend of care, flexibility, recognition, and trust.

At the same time, a different voice is also being heard: companies such as Netflix, HubSpot, Virgin, and Coolblue have moved away from the traditional model of fixed hours and standard leave. Instead, they opt for working models in which employees set their own hours, take unlimited holiday days, work wherever they choose, and make use of creative relaxation spaces.

This era has also seen the concept of employer branding rise sharply. Secondary benefits are no longer just an internal HR concern, they have become an external communication tool. They play a significant part in determining how attractive you are as an employer and take centre stage in the competition for talent.

Acceleration through COVID-19

The coronavirus pandemic brought about an abrupt and lasting shift in how we view work and benefits. In a very short space of time, working from home became the norm, attention to mental health grew significantly, and work-life balance emerged as a decisive factor in employee satisfaction and retention. Since then, many employers have been reassessing their benefits packages, placing flexibility, trust, and health at the heart of what they offer.

The paradox of today: secondary benefits have long since become primary

What once began as perks offered by visionary employers now shapes how employees feel connected to their work. And yet:

• Benefits are often poorly explained
• They are scattered across handbooks, portals, and HR systems
• Employees are unaware of everything they are being offered

In an era of labour market tightness and shifting expectations, employers can no longer afford to let this slide.

Our vision: benefits deserve more than a footnote at the back of the handbook

• Make them clear: plain language, without legal detours
• Make them visible: ensure employees know what they have
• Make them flexible: what works today must be able to adapt tomorrow
• Make them personal: because work has long since ceased to be one-size-fits-all

What we now call 'secondary' benefits increasingly touches on what people truly value in their work. It determines how connected they feel to their employer, and whether they stay or leave. In that sense, they stopped being secondary a long time ago.