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In April 2020, the unemployment rate in the US was at “the highest level ever,” followed by almost record low unemployment in 2022. There is also a record two job openings for every unemployed person, making for fierce competition for talent. Some companies are turning to cryptocurrencies to sweeten the pot.
Offering cryptocurrency salaries is not new, but it is becoming more common as companies try to lure top talent. In 2017, the Japanese internet company GMO, announced that it would pay some of its employees’ salaries in bitcoin, and it’s joined by the likes of SC5, Fairlay, and io.
Related: 3 Ways to Stay Competitive in the War for Talent
Why Offering Crypto Salary Is A Meaningful Benefit
a great 56% of US adults (about 145 million people) own or have owned crypto. Offering salaries denominated in cryptocurrency is appealing to a much larger segment of the population. In addition, young people are particularly optimistic about crypto. A recent study found that Generation Z buyers and millennials are almost good 94% of all crypto buyers.
Offering cryptocurrency as a salary option is a way for companies to tap into this enthusiasm and send a signal that they are ahead of the curve 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 familiar with and advocates for cryptocurrency.
Paying salaries in cryptocurrency naturally comes with some risks. The value of digital assets can be volatile, so an employee who is paid in crypto may see his or her earnings fluctuate wildly from month to month. For this reason, it is important for companies to consider whether they are willing to offer salary protection in the form of cash supplements or other benefits if the value of crypto falls.
Employees can be paid in crypto for a variety 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 would do well to consider offering crypto payroll options. It could 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 Payroll Is Beneficial For Employers Too
In addition to its 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 cut costs. Transaction fees for cryptocurrencies are generally lower than those for traditional payment methods such as bank transfers or credit cards, especially for cross-border payments.
In addition, crypto payroll can help companies hedge against currency risks. If a company pays its employees in a foreign currency, it runs the risk of the value of that currency falling against the company’s home currency. By paying salaries in cryptocurrency or stablecoins such as USDT, companies can hedge against this risk. For example, the Japanese yen has fallen more than 20% against the US dollar (or its stablecoin equivalent, USDT) this year.
Last but not least, crypto salary can give companies a competitive advantage 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 are often lost or delayed in the mail) – 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 payroll?
If you are interested in offering crypto payroll to your employees, there are a few things to keep in mind.
First you need to decide which cryptocurrency or cryptocurrencies you want to use. Thousands of different digital assets exist, so it’s important to do your research and consider what makes the most sense for your business.
For example, if you want to give employees the ability to easily hold and use their earnings, consider a major cryptocurrency such as bitcoin or Ethereum. If you are more interested in hedging currency risk, a stablecoin such as USDT could be a good choice.
After you select a cryptocurrency, you need to set up a way to pay salaries in that currency. The naive approach would be to simply ask employees to provide 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 payroll service. Not only does this save you time and reduce the risk of errors, but it also makes it easy for employees to receive their earnings directly into their own wallet or exchange them for other currencies if they wish.
Ultimately, offering crypto salary is a way to stay ahead and attract top talent. If you’re interested in this, there are a few things to keep in mind. But with the right preparation, it can be a major competitive advantage for your business.
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.