Remember when cryptocurrencies were this unconventional trend? Fast forward to today, and we’re looking at a much more mainstream form of finance.

No stone has been left unturned by the impact of cryptocurrency. They’re even offered as part of the benefits packages for employees. And since they’re up for it, who better than HR to guide them through the potential challenges?

There are currently 15,174 businesses worldwide that accept Bitcoin, with 20% of them being American small businesses. So, if companies want to attract new talents, especially among the Gen Z and Millennial generation, they should start digging more into the world of cryptocurrency.

Let’s delve into the perks and benefits crypto has to offer. And more importantly - how both your company and employees can reach new heights by HR stepping in.

Crypto as part of the benefits packages for employees

While traditional compensation is still a thing, today’s tech-savvy generations are thirsty for modern benefits. Statistics show that 94% of crypto buyers are Gen Z and millennials. This got us all thinking - is cryptocurrency compensation here to stay?

If you take a step toward ‘’cryptonazation’’, you can give your employees a chance to receive their salary or bonuses in crypto. By doing so, you’ll immediately pique their interest. And here’s why:

• Lower fees, faster payments. Traditional banking fees are nobody’s friend - not yours, and not your employees’.Implementing crypto as compensation helps you minimize these fees and at the same time, send payments in just a matter of minutes.
• Cryptocurrencies are volatile. No, this isn’t the cons section. The volatile nature of cryptocurrencies can also be a good thing. It’s an opportunity for your employees to benefit from sudden fluctuations. And also, enjoy a higher return on investment.
• No need for intermediaries. Blockchain technology has brought smart contracts to the table. This means that no financial institutions have to be involved in peer-to-peer transactions. You and your employee will have full access to transaction details, without being held up or kept in the dark by third-party intermediaries.

But even though beneficial, a transition is still a transition. It has to be well-managed and your employees have to be informed and guided throughout the process. And this is why your HR team plays a huge role in managing employees’ crypto challenges.

Perks of offering cryptocurrencies in employee benefits

While we’ve listed the general benefits of cryptocurrencies, there are even more opportunities awaiting you and your workforce once your business adopts them. Here’s why crypto compensation is a game changer for modern businesses, especially those with Gen Z and millennial employees:

Appealing to tech-savvy generations

Attracting Gen Z and millennial workforce is the key to any company’s success. These are computer-literate generations interested in ever-evolving trends and businesses. And implementing crypto compensation will help you to align with their tech-driven interests.

Considering how competitive today’s market is, this crypto-adopting move will help you stand out and showcase your commitment to innovation. You’ll strengthen your reputation and at the same time, secure top talents.

Enhanced remote work efficiency

There’s a bigger than ever need for cross-border transactions, as remote working continues thriving. And cryptocurrencies surely beat the traditional banking system in terms of speed and cost-efficiency. Sending and receiving payments is no hassle. You’ll also enjoy more transparent financial relationships with your employees.

Furthermore, the transparent nature of cryptocurrencies is there to make up for the lack of face-to-face interactions. Cryptocurrencies ensure tamper-proof records so that both you and your employees will have access to financial dealings. A great way to establish yourself as a trusted partner.

Compensation through token vesting

Think of this as a type of bonus for your employees. The most loyal ones will receive a share of this bonus, in this case, tokens or cryptocurrencies, the longer they stay with the company. The compensation through token vesting approach is designed to motivate employees and build loyalty over time.

In the end, both sides win. You’ll secure a workforce that’s invested in your company’s success. Your employees, on the other hand, will gain tokens or cryptocurrency rewards for their hard work and loyalty.

Positive impact on company culture

The world is becoming fully digital, whether we like it or not. This means that there will only be a place for businesses that embrace technology. And those that don’t will likely struggle to keep up and slowly fade away.

And if there’s an ever-evolving digital trend waiting to be adopted - it’s cryptocurrencies. Embracing cryptocurrencies will have a positive impact on company culture. You’ll showcase your business as forward-thinking and will spark curiosity among potential employees.

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HR in overcoming employees’ crypto challenges

Cryptocurrencies have been present for over a decade. However, there’s still an air of mystery surrounding them. Proper regulations haven’t been put in place and they’re still operating in a regulatory gray area. They’re not covered by Federal Deposit Insurance Corp. policies nor by Securities Investor Protection Corporation.

Even though blockchain is highly secure, cryptocurrencies are still vulnerable to cyber-attacks and hacking. If your employees aren’t familiar with crypto decentralization and how it impacts security, it might come as a shock.

Additionally, the volatile nature of cryptocurrencies must be taken into account. This is probably the biggest challenge as it can act as a double-edged sword. The prices can fluctuate so much that it can lead to double payments or reduced values of benefits. And this can all happen overnight.

These crypto challenges are inevitable. And once you embrace crypto compensation, your HR team will have to understand how these assets function. Otherwise, confusion could arise among employees. Here’s how HR can help manage potential employees’ crypto challenges:

• Offer education. While some might already be familiar with cryptocurrencies and the way they work, old-school employees might not understand them at all. HR can provide them with enough knowledge, whether through workshops or educational videos. That one’s up to you. Timely informing employees about this transition gives them enough confidence to embrace it.

• Flexible compensation. Rather than one approach, give your employees a chance to choose between traditional and crypto compensation. Not everyone has the same preferences and level of risk tolerance. Show that you care about their individual needs and preference. Whether remote or on-site, provide a friendly environment and support system for your employees.

• Regulation and tax awareness. Cryptocurrency regulation is still a work in progress. Private-to-private wallet transactions aren’t regulated at all. And while crypto regulations are advancing, it’s important to keep up with the latest developments. And later, share these updates with your employees.

As for tax implications, it’s a smart idea to engage a tax advisor that’s familiar with cryptocurrencies. In the eyes of the IRS, cryptocurrencies are capital assets. And as such, can be subject to income or capital gain taxes. Consult with an advisor to make sure you’re adhering to capital and federal laws.

• Enhancing cybersecurity. Cryptocurrencies have been subject to a few cybersecurity incidents since the release of Bitcoin in 2009. And despite blockchain’s secure landscape, they remain vulnerable. HR can step up and promote cybersecurity awareness by educating employees about safety precautions.

There’s no denying that HR plays a crucial role in navigating employees’ crypto challenges. By educating your employees, you’re providing a safe and supportive environment where everyone is allowed to make their own decisions.

Embracing the future with crypto compensation

Cryptocurrencies have had their ups and downs. But it seems like they’re here to stay. As businesses are becoming more interested in the idea of crypto compensation, educating yourself and your HR team about these digital assets becomes inevitable.

Sure, challenges will arise. But here’s your HR team to help employees successfully navigate through them. Not only that but you’re opening a door full of possibilities - attracting young talents and giving your company a competitive edge in a competitive digital market.

FAQ

What is the role of HR in managing employees’ crypto challenges?

HR is responsible for welcoming and guiding employees through a crypto compensation transition. They can offer education, and keep employees informed about potential price fluctuations, and any changes regarding regulation and tax implications.

What are the perks of offering crypto as part of employees’ benefits packages?

Crypto compensation is gaining popularity for a reason. Many perks and benefits come with it. For example, you’re showcasing a forward-thinking company culture that’s ready to embrace technology and innovation. You’re attracting young talents by appealing to their tech-savvy interests. And you’re also enhancing remote work efficiency by providing fast and secure transactions.

How can flexible compensation help manage employees’ crypto challenges?

Consider giving your employees a chance to choose between traditional and crypto compensation. It shows them you care about their individual needs. It also demonstrates your company’s flexibility.

Author bio

Makedonka Micajkova is a freelance content writer and translator, always bringing creativity and originality to the table. Being multilingual with professional proficiency in English, German, and Spanish, it’s needless to say that languages are her biggest passion in life. She is also a skilled communicator, as a result of having three years of experience as a sales representative. You can find her on Linkedin.