As companies battle to retain talent, employee-benefit startups can get away with cutting costs – TechCrunch
What will the staff be like? benefits for startups raising prices as their corporate customers start cutting costs as the market goes down? We will find out if the current trends will continue.
The number of startups offering employee benefits through B2B2C model spiked last year, as nearly every company focused on employee benefits amid Big Resigners in an effort to retain and attract talent. These startups sell everything from co-ordinating paid care leave and discounted fertility services gym membership to consumers through their employers.
But the free spending of 2021 is it’s over nowand some of these startups could find their offered services on tight block if market conditions continue to deteriorate.
If a recession were indeed imminent, many of these startups would be right to fear for their future growth, but Brian Kropp, head of HR research at Gartner, do not think this downturn will reflect the last time. Kropp told TechCrunch that even if the market enters a downturn, it won’t look like what we saw in 2008 because of the ongoing labor shortage.