If you haven’t experienced ghosting, the trend of candidates and employees disappearing without warning, you’ve most certainly heard of it. It’s a real serious problem, apparently. And even if your company hasn’t fallen victim directly, you likely noticed employees are sticking around for less time than they used to.
As a result, vendors who help companies make their workforce feel special and provide perks like saving money on services they already use are hot. Fortunately, the world has moved beyond plaques and gold watches to things that are more practical, useful, and desirable for most folks. Benefits are also coming at a more rapid pace, these days; no longer do employees have to wait ’till the end of the year or retire to get something nice.
Chicago-based PerkSpot is one of these vendors looking to cash in on the workplace warm-and-fuzzies. Founded in 2006 from his home in Chicago, Chris Hill has built a business worthy of a $50 million round of investment. Announced last week, the funds came in the form of a growth equity investment from Susquehanna Growth Equity. The funding marks PerkSpot’s first outside investment.
“We are excited to partner with SGE, who share our vision and growth aspirations for PerkSpot,” said Hill, who also serves as executive chairman at PerkSpot. “In leveraging SGE’s capital and deep expertise, we will continue expanding the service we provide to millions of employees from clients like Southwest Airlines, Walgreens, Adventist Health System, and Spotify.”
Such bootstrapped success stories are rare in any industry, let alone HR. By the numbers, the company employs 25, serves 700 customers and partners with over 1,000 businesses who offer the perks. Employees benefit by saving money and merchants get access to a large pool of potential customers. PerkSpot essentially serves as the middleman.
“We started kind of small with that, with a few discounts with Dell, Brooks Brothers, and a few other merchants, and we’ve just grown over time to nearly 1,000 merchants now,” said CEO Jace Mouse in an interview with Built In Chicago. “We’ll help an employee save money on anything from a movie ticket for the weekend to shoes for work, apparel, travel, or even new cars.”
PerkSpot says employees can save an average of $2,300 each year on purchases big and small. Worker can get exclusive discounts on brands such as Apple, Samsung, AMC Theatres, and Target. The company says it has nearly tripled its revenue by focusing on employee needs.
The landscape is pretty full, so the money comes at a good time. Competitors like Bonusly, Fond, and Corporate Perks offer similar benefits with similar business models. However, Mouse thinks it has the secret formula for success.
“The key to our success thus far has been attracting top talent that are committed to winning the right way and putting our clients first,” said Mouse. “This investment is a testament to our employee-focused product strategy, and we look forward to the opportunity it brings by growing our team and product suite to provide even more benefits to employees in the future.”