It can be especially difficult for startups to compete for good people. Google, Amazon, Facebook and other tech giants have hiring war chests that startups simply can’t match.
And it’s not just other tech companies that startups must compete with. In 2019, according to an analysis by Bain & Company, approximately 40% of software engineer and developer hires were made by companies outside of tech.
So what can the “Davids” of the tech hiring battles to do? As a lawyer who serves as fractional general counsel to startups, I have an up-close perspective on how companies are hiring. One trend I’m seeing is companies offering cryptocurrency in a bid to lure workers.
Some “Goliaths” are looking at crypto as an employee incentive, too. On CNBC, Twitter’s CFO said, “We’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in bitcoin.” Even the City of Miami is getting in on the action. Mayor Francis Suarez announced in October that he is moving forward with a proposal to pay city workers in bitcoin.
So why are employers opting to incentivize workers with cryptocurrency?
Put simply, the calculus in most cases is that it’s a form of differentiation that may attract workers looking for a forward-thinking, innovative employer that offers strong benefits and compensation. For the right worker (and often it’s the type of worker that a tech startup is looking for), a $10,000 starting bonus…
