As companies fight to retain talent, employee benefits startups might escape cost cuts

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When corporate customers cut costs, how will employee benefits companies fare? If trends continue, we will find out.

There was a spike in the number of startups offering employee benefits services through a B2B2C model last year, as nearly every company focused on employee benefits in an effort to retain and attract talent. These startup are selling everything from paid care leave to discounted gym memberships to consumers.

If the market conditions continue to get worse, some of the startup's services may be in danger.

If there is a recession on the horizon, many of these startups would be right to fear for their future growth, but Brian Kropp doesn't think this downturn will mirror the last Even if the market goes into a recession, it won't be like 2008 because of the labor shortage.