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How will employee? benefits for startups when their corporate clients start cutting costs as the market goes downhill? We’re going to see if the 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 during the Great Resignation in an effort to retain and attract talent. These startups sell everything from paid maternity leave coordination and fertility services to discounted gym memberships to consumers through their employers.
But the freewheeling expenses of 2021 is now overand some of these startups could find their offered services on the chopping block if market conditions continue to deteriorate.
If indeed a recession is on the horizon, many of these startups would rightly fear for their future growth, but Brian Kropp, head of HR research at Gartner, does not think this downturn will mirror the latter. Kropp told toptecheasy.com that even if the market goes into recession, it won’t be comparable to what we saw in 2008 because of the ongoing labor shortage.
