With white-collar workers settling into hybrid work arrangements, a legacy of the pandemic, companies are rethinking how they offer corporate perks like transportation, cafeterias and gyms (much to the chagrin of some). As the concept of “the office” evolves, employers are encouraged to offer flexible benefits that can be tailored to the needs of individual employees. Instead of complimentary laundry service, for example, workers are embracing the idea of work-from-home and wellness stipends.
There are many benefits management platforms out there, including Cherry, Fringe, and Origin (which offers financial planning as a benefit). But Amy Spurling, chief executive of Compt, argues that established solutions rely too heavily on vendor marketplaces or benefits cards, limiting the ways employees can use their perks.
“The missing key to simultaneously rationalize the [employee perk] process for managers and increase employee engagement [is] customization,” Spurling told TechCrunch via email. “When companies look to support employees with personalized benefits solutions, they can choose vendor marketplaces, card-based models, and reimbursement. The goal is to offer something unique to each employee, but vendor marketplaces and card-based models are inherently the opposite; they limit the options an employee has to a few big-name companies to spend their money on benefits.”
She pitches Compt, based in Cambridge, Massachusetts, as the answer. Building on a $13 million Series A led by Battery Ventures, which the company announced today, Compt allows teams to allocate flat stipends across broad categories like “health and wellness” or “family” and then allow employees to choose services on those categories that appeal to you. to them To get reimbursed, workers upload photos of receipts through the Compt mobile app or Slack integration.
“Compt’s reimbursement model allows an employee to spend money anywhere and on anything: a local restaurant, a favorite mindfulness app, vet bills, a charity close to their heart. The possibilities are truly endless,” Spurling said. “Also, by enabling customization, more money is spent locally in the communities where people live… Through personalized benefit stipends with Compt, companies can support their teams and the communities in which they live and work.”
A path to advantages
Spurling was previously the COO and CFO of Jana, a mobile advertising company, where she led the human resources and finance teams. While she was there, she says she saw that the company was trying to implement a successful benefits program, but all the employees wanted different things.
“In response, HR tried to schedule more and more benefit providers and track usage so the finance team could ensure taxation. The resulting mess was an administrative nightmare,” Spurling said. “[I] realized that the missing key to simultaneously simplifying the process for managers and increasing employee engagement was personalization.”
Compt accomplishes this by integrating with HR systems and payroll software on the backend. The platform is designed to be “IRS friendly,” Spurling says, but also to support global teams: Compt currently supports businesses in all 50 US states and 60 countries.
In addition to basic benefit policies, Compt can send employee bonuses and link bonus programs to a benefit stipend. For example, companies can reward employees on their birthdays and work anniversaries or for reaching milestones and project goals.
Standing out from the crowd
Compt is growing fast, says Spurling, with ambitions to expand from a 12-person team to 20 by the end of 2022. Annual recurring revenue in 2021 grew 500%, and the company claims its gross margin profile is 97%. . The total raised from Compt is $16.5 million.
When asked about near-term plans, Spurling says that Compt will double down on customer acquisition, increasing its marketing focus. “As the future of work tends to become more employee-centric and less company-centric (a huge benefit to our business model), we are still, like so many others, working to overcome the old way of thinking that employees should log in. sit down and be compatible work robots,” he added.
It’s true that corporate profits are ripe for disruption (excuse the buzzword). In a recently published 2020 employee wellness study by Gallup, only 24% of workers said they participate in wellness programs at their companies, and only 12% say they help wellness. In another employee survey, this one conducted by Metlife, 61% of workers said having access to emergent benefits would reduce their stress, while 52% said it would make them more loyal to their employer.
But, as the $12.3 billion venture capitalists funneled into HR technology startups last year illustrate, there is no shortage of strong competition. Compt will have to prove that its platform is differentiated enough to stand out from the crowded field.
“There are…more HR technology companies entering the market and there could very well be an oversaturation of reimbursement options, making it difficult for decision makers to determine which platform will be best for truly personalized benefit stipends” Spurling said. “This defeats the purpose of supporting an employee’s general well-being and not just their job well-being.”