25. March 2025
Tech Job Market Heats Up: Flexible Work Becomes New High-Value Perk
The Tech Job Market of 2025: A Shift Away from Lavish Perks and Towards Flexibility
In recent years, the tech job market has become increasingly competitive, with startup and tech jobs being harder to come by. The rise of remote work and flexible schedules has led to a shift in the way employers approach workplace perks. Gone are the days of lavish sign-on bonuses, gourmet meals, and on-site masseuse visits. Instead, startups are retooling benefits and perks with an eye to maintaining or reducing costs while sustaining workplace morale.
According to Jaclyn Chen, CEO and co-founder of Benepass, a startup that works with companies to set up perks and benefits plans, “Everyone’s very cost-conscious.” In recent quarters, more companies have been adding benefits in areas such as fertility, dependent care, and individually selected perks. However, employers are also cutting benefits that they see as underutilized, such as universal gym memberships or on-site events.
The current environment is a shift from the more-is-better mantra when startup funding was hitting record highs a few years ago. Back then, startups vied for talent in a tight labor market by offering higher salaries, flexible schedules, remote work, extensive paid time off, and subsidies for things like gym memberships and dependent care. Besides competing with each other, startups also had to contend with big tech companies like Google and Meta, known for their chic campuses and lavish perks.
Today, the risk of employees jumping ship for a bigger paycheck and more perks is lower. For one, it typically takes more time and effort to land a new job than was the case a few years ago. Employment by tech sector companies has also been trending lower, according to analysis from IT certifications provider CompTIA.
However, perks and benefits aren’t only designed to lure new hires. Companies also want to keep existing employees engaged, avoid burnout, and maintain high job satisfaction. At maturing startups in particular, HR departments have to balance the needs of workers at different stages in their lives. Core constituencies might include recent graduates seeking mentoring and social connections as well as older peers starting families and navigating work-life balance.
One way startups are catering to employees while keeping costs in check is by offering a choice of perks. Lifestyle spending accounts, for instance, allow employees to allocate a given sum across several options such as gym memberships, work-from-home expenses, and even potentially pet care. And while parental leave has long been a standard benefit, we’re seeing an uptick in fertility benefits tailored to employees’ particular needs, with coverage potentially contributing to IVF, fertility consultations, and adoption costs.
Another growth area is perks around commuting. While remote or hybrid work isn’t going away, we’re also not returning to the peak work-from-home pandemic days. As employers seek to bring more workers back on-site, they’re adding benefits aimed at reducing the cost of coming into the office. Where talent is in short supply, benefits follow.
For example, at OpenAI, employees receive unlimited, flexible time off, daily breakfast, lunch, and dinner, and coaching sessions, along with robust medical, family leave, and travel benefits. At CoreWeave, 100% of medical, dental, and vision insurance are covered, with benefits extending to childcare support and mental wellness.
The level of perks employers offer tends to rise and retreat, much like economic cycles. Currently, with the startup job market down from its peak-era frenzy, we appear to be in one of the periods of retreat. However, past history teaches us that given enough time, things will shift again.
The rise of AI has created new opportunities for startups to attract top talent. However, this also means that the competition for skills is fierce, and employers must be willing to invest in their employees’ well-being and happiness. As we move forward, it’s likely that perks and benefits packages will become even more tailored to individual needs.
The future of work benefits is likely to be shaped by the ongoing shift towards flexibility and remote work. Employers will need to find ways to make work-life balance a priority for their employees while also maintaining productivity and efficiency. This may involve offering flexible schedules, compressed workweeks, or on-site childcare services.
As we look ahead to 2025, it’s clear that the tech job market is undergoing a significant shift. Gone are the days of lavish perks and benefits packages. Instead, startups are focusing on creating a more sustainable and equitable work environment that prioritizes employee well-being and happiness. With the rise of AI and remote work, employers will need to be creative and innovative in their approach to benefits and perks.
Ultimately, the future of work benefits is likely to be shaped by the needs and expectations of employees themselves. As we move forward, it’s clear that companies will need to be more attuned to the changing needs of their workforce if they want to attract and retain top talent. By offering a range of flexible and personalized perks, startups can create a workplace culture that prioritizes employee well-being and happiness, while also driving innovation and productivity.
The shift towards flexibility and remote work is likely to continue, with more companies adopting hybrid models that allow employees to split their time between working from home and working on-site. As this trend continues, it’s likely that perks and benefits packages will become even more tailored to individual needs, with a focus on creating a sense of community and connection among employees.
In the end, the future of work benefits is about creating a workplace culture that prioritizes employee well-being and happiness, while also driving innovation and productivity. By offering flexible and personalized perks, startups can create a workplace environment that attracts and retains top talent, while also setting them up for success in an ever-changing job market.