Landing a job in the tech industry isn’t as easy as it once was. With widespread layoffs and a surge of applicants chasing fewer roles, jobseekers face intense competition. Employers, on the other hand, hold most of the leverage.
The shift is visible in the kinds of perks startups are offering—or no longer offering. Flashy incentives like hefty sign-on bonuses, fully remote roles, or lavish on-site perks such as gourmet meals and massages are fading. Companies are rethinking their benefits packages, cutting costs without entirely sacrificing employee morale.
According to Jaclyn Chen, CEO and co-founder of Benepass—a platform that helps companies manage perks—startups are now laser-focused on value. “Everyone’s very cost-conscious,” Chen shared. Lately, companies are leaning into benefits that support fertility, dependent care, or customizable perks employees can pick based on personal needs.
At the same time, perks deemed underused are on the chopping block. For instance, company-wide gym memberships are being trimmed, especially when hybrid work means fewer people show up at the office. Extravagant on-site events and gourmet snacks are also giving way to simpler, budget-friendly alternatives.
From Big Perks to Bare Essentials: A Shift in Startup Culture
Just a few years ago, startups competed fiercely for top talent. Flush with venture funding, companies dangled high salaries, flexible schedules, remote work opportunities, generous PTO, and subsidies for everything from gym memberships to childcare.
Big tech giants like Google and Meta set the standard, known for their luxurious campuses packed with perks designed to attract and retain the best minds.
But in 2025, the tables have turned. Today, fewer employees are tempted to jump ship for better perks elsewhere. With fewer job openings and lengthier hiring processes, job hopping has slowed. Data from IT training provider CompTIA shows tech employment levels are still trending downward.
Despite this, startups aren’t dropping perks entirely. Instead, they’re shifting focus. HR teams now prioritize supporting their existing workforce—preventing burnout, fostering engagement, and addressing the evolving needs of employees at different life stages. Young professionals might crave mentorship and social events, while older workers focus on family care and work-life balance.
Flexible Benefits Take Center Stage
To meet diverse employee needs while staying within budget, startups are turning to flexible perks. Lifestyle Spending Accounts (LSAs) are growing in popularity. These give employees a set budget to spend on options they actually value—gym memberships, remote work expenses, even pet care.
Family-related benefits are also evolving. While parental leave has become a standard offering, more startups now add fertility benefits, covering IVF, consultations, or adoption-related costs to support employees growing their families.
Commuter perks are another area seeing growth. As hybrid work becomes the norm, companies aim to ease the cost of returning to the office. Subsidies for transportation or parking are among the new incentives designed to make the commute less painful.
Top AI Startups Still Splash Out—If You’ve Got the Skills
Of course, well-funded startups—especially those in AI—are still rolling out premium perks to attract rare talent. The competition for top engineers and AI specialists is fierce.
OpenAI, for instance, offers unlimited flexible time off, daily meals, and personal coaching. Their benefits package includes generous medical coverage, family leave, and travel perks.
At CoreWeave, healthcare perks stand out. The company covers 100% of medical, dental, and vision insurance while offering childcare support and mental health benefits. Both CoreWeave and AI rival Anthropic also include fertility support, partnering with Carrot Health for family-building services.
Other unicorns sweeten the deal with mental health platforms like Spring Health and childcare solutions through Kinside—making benefits a key differentiator.
The Perks Pendulum Always Swings Back
Much like the economy, startup perks follow a predictable cycle—booming in good times and shrinking during downturns. Right now, the market has cooled, forcing companies to scale back.
Still, this is likely temporary. If history is any guide, the next funding boom will bring another wave of flashy perks and aggressive hiring. For now, though, flexibility, family care, and thoughtful perks tailored to individual needs define the landscape for 2025.
