TL;DR: The world is moving in this direction but nothing catches my eye yet. Seeing more point solutions (mat/pat leave etc.) rather than end-to-end core software right now.
Besides mat/pat players, companies are still repackaging old HCM software in better UI/UX and doing manual exports of rewards, allowances, etc. It’s really hard to go international due to each geography’s preferences and culture. Few in the US have been able to layer in insurance as well. Overall bullish on the tailwinds but don’t think any company has been able to build something beyond an incremental improvement yet.
If evaluating Europe, the benefits culture is very different and should consider a different set of evaluation criteria. France is one of the hardest countries to tackle re benefits - they have government mandated benefits.
Tailwinds
Generational Shift > Boomer to Gen Z / Millennial
Care about different things
Pensions becoming a thing of the past
Gym, traveling, mental health, fertility
Remote / Hybrid first > need more flexible benefits and different benefits that are RELEVANT
More gig / freelancers
Technology first
Old UI / UX is not going to fly
Great resignation
Focus on attracting and retaining talent
Benefits packages = competitive advantage
TLDR
Future of work
Tends to be more tech companies focused on doing better benefits packages – understand target market
American landscape is more fragmented into
Benefits admin > for HR / ops
Benefits providers > old school, integrated with insurance
Perks > non insurance
Key Question: How to drive higher utilization % and lower costs?
American Companies
Compt
Benefitfocus
Beneplace
Nava benefits
Forma – life benefits
Rewards
Kazoo
Blueboard
Perkspot
Xceleration partners
Everythingbenefits
Achievers
European companies
Sodexo
Edenred
Worklife
Swile
Flash
Benify
Perkbox
darwin
Happypal
Cobee (portugal)
Coverflex
Ben (London)
Club employes (meal voucher)
Circula
Other
Mercer
Aon
Other consideration factors
Insurance?
Integration with broker, if playing with insurance?
Regulations
Regulations / mandated? % allocated towards benefits?
France has pro-benefits regulation of CSE
Product
Card? Interchange? What are revenue lines? What is recurring?
Global expansion > good or bad strategy?
What is proprietary? Product? Tech? insurance integrations?
Specifically from company POV
Cost efficiency - How it drives utilization % of benefits to ultimately save money for the company
Tax benefits if any
Data reporting / ease of use for HR / ops
User experience > digital is table stakes
Specifically from rom customer POV
User experience > digital is table stakes
Flexibility – can customize? Stipend style?
If just perks / rewards, how to layer in local market dynamics and culture? What do people want?
Customer Type
Target customer – enterprise, mid, micro?
ACV expansion opportunities
Industry preference?
Metrics
ARR retention and growth
Pipeline / sales team
Tends to be not a sticky product > how are they creating stickiness?
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