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Home»Tech News»As companies fight to retain talent, employee benefits startups might escape cost cuts – DailyTech
Tech News

As companies fight to retain talent, employee benefits startups might escape cost cuts – DailyTech

August 15, 2022No Comments1 Min Read
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As companies fight to retain talent, employee benefits startups might escape cost cuts – TechCrunch
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How will employee benefits startups fare when their corporate customers start slashing costs as the market goes downhill? We’re going to find out if current trends continue.

There was a spike in the number of startups offering employee benefits services through a B2B2C model last year, as nearly every company focused on employee benefits amid the Great Resignation in an effort to retain and attract talent. These startups sell everything from paid care leave coordination and fertility services to discounted gym memberships to consumers through their employers.

But the freewheeling spending of 2021 is now over, and some of these startups could find their offered services on the chopping block if market conditions continue to worsen.

If there is indeed a recession on the horizon, many of these startups would be right to fear for their future growth, but Brian Kropp, chief of HR research at Gartner, doesn’t think this downturn will mirror the last. Kropp told DailyTech that even if the market enters a recession, it won’t be similar to what we saw in 2008 because of the ongoing labor shortage.

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Benefits companies cost cuts DailyTech employee escape fight retain startups Talent
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The Redmi Note 13 is a bigger downgrade compared to the 5G model than you might think

Xiaomi Redmi Watch 4 is a budget smartwatch with a premium look and feel

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