How crypto can be used to attract and retain top talent
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In April 2020, US unemployment was at “the highest level ever”, followed by near-record low unemployment in 2022. There are also a record two open jobs for every unemployed person, driving fierce competition for talent. Some firms are turning to cryptocurrencies to sweeten the pot.
Offering salaries in cryptocurrency is not new, but it is becoming more common as companies attempt to lure top talent. In 2017, Japanese internet company GMO announced that it would pay part of its employees’ salaries in bitcoin, joining the likes of SC5, Fairlay and io.
Related: 3 Ways to Stay Competitive in the War for Talent
Why offering crypto wages is a meaningful benefit
A whopping 56% of American adults (around 145 million people) own or have previously owned crypto. To offer salaries denominated in cryptocurrency is to appeal to a much wider segment of the population. Also, young people are particularly positive about crypto. A recent survey found that buyers in the Gen Z and millennials buckets make up nearly 94% of all crypto buyers.
Offering cryptocurrency as a payment option is a way for companies to capitalize on this enthusiasm and signal that they are forward thinking when it comes to new technologies. It is also a way to attract employees who may be interested in working for a company that is comfortable with and supports cryptocurrency.
Of course, paying wages in cryptocurrency comes with some risk. The value of digital assets can be volatile, so a worker paid in crypto may see his earnings fluctuate wildly from month to month. For this reason, it is important for companies to consider whether they are prepared to offer salary protection in the form of cash top-ups or other benefits if the value of crypto falls.
Employees may want to be paid in crypto for a number of reasons, from the potential for appreciation to the simple fact that it’s a more convenient way to hold and use digital assets. But regardless of the reasons, companies looking to stay ahead of the curve would do well to consider offering crypto pay options. It can be the key to attracting and retaining top talent in today’s competitive landscape.
Related: The Complete Guide to Crypto, Bitcoin, ApeCoin and Blockchain Technology
Crypto wages are also beneficial for employers
In addition to the ability to attract top talent, there are a number of reasons why paying salaries in cryptocurrency can be beneficial for employers.
First, it can help businesses save costs. Cryptocurrency transaction fees are generally lower than those associated with traditional payment methods such as bank transfers or credit cards, especially for cross-border payments.
In addition, crypto wages can help firms hedge against currency risk. If a company pays its employees in foreign currency, it is exposed to the risk that the value of that currency will decrease in relation to the company’s home currency. By paying wages in cryptocurrency or stablecoins such as USDT, companies can hedge against this risk. For example, the value of the Japanese yen fell over 20% against the US dollar (or its stablecoin equivalent, USDT) this year.
Last but not least, crypto wages can give companies a competitive edge when it comes to speed and efficiency. Cryptocurrency transactions are generally much faster than traditional payments, meaning employees can access their earnings faster. And because digital assets can be stored and used electronically, there is no need for paper documents or checks (which can often be lost or delayed in the post) – everything is stored securely on the blockchain.
Related: The Future Of Banking: How Blockchain Technology Can Merge Crypto And Traditional Banking
How to offer crypto wages
If you are interested in offering crypto wages to your employees, there are a few things to consider.
First, you need to decide which cryptocurrency(s) you want to use. There are thousands of different digital assets out there, so it’s important to do your research and consider what makes the most sense for your business.
For example, if you want to offer employees the ability to keep and spend their earnings easily, you may want to consider a major cryptocurrency such as bitcoin or Ethereum. If you are more interested in hedging against currency risk, a stablecoin like USDT may be a good choice.
Once you’ve chosen a cryptocurrency, you’ll need to set up a way to pay wages in that currency. The naive approach would be to simply ask employees to give you their cryptocurrency wallet address and manually transfer the correct amount each month. But this is time-consuming and exposes you to the risk of human error.
Another option is to use a crypto salary service. This not only saves you time and reduces the risk of errors, but it also makes it easy for employees to receive their earnings directly in their own wallet or exchange them to other currencies if they wish.
Ultimately, offering crypto salaries is a way to stay ahead of the curve and attract top talent. If you are interested in doing so, there are a number of things to consider. But with the right preparation, it can be a huge competitive advantage for your business.
