From startups to scale-ups: Rethinking employee benefits for growth

By Prashant Maheshwari, Finance Director, Pluxee India: India has emerged as the world’s third-largest startup hub, home to over 1.57 lakh recognized ventures driving innovation. Fueled by a young workforce where nearly 65% are under the age of 35, this ecosystem thrives on energy, experimentation, and ambition.

While startups are redefining how businesses scale, many are realizing that sustainable success depends not only on products and funding but also on how they care for their people.

Founders increasingly recognize that early-stage benefits define culture, express values, and power both attraction and retention. Today’s HR isn’t reactive, it’s foundational, strategic, and deeply tied to business growth.

Laying the foundation: Building value-aligned, scalable benefits

In the early days, startups must design employee benefits as extensions of their culture, clear signals of purpose and care. For founders, the key is to embed this mindset before the team reaches 30 people. This is also the point to transition from founder-led HR to structured People Operations (PeopleOps).

At this stage, focus on essentials that matter most for a lean team: comprehensive health coverage, flexible time-off policies, and work arrangements that acknowledge individual needs. By putting these in place early, startups build a workplace where trust grows alongside ambition.

Case in Point: Classplus launched the Wellness+ program early on, providing 24×7 emotional support to employees and dependents via confidential therapy channels. These moves underscore how early investments in wellbeing signal care, shape culture, and promote trust, even before PeopleOps teams are formalized.

Scaling with intention: adapting benefits as teams grow

As teams cross the 50–200 employee mark, complexity rises. Companies expand into new locations, roles diversify, and what worked for 20 people rarely fits 200.  This is when scalable systems and processes become non-negotiable.

Here, HR must evolve into a true strategic partner. Compliance with labour laws, scalable policies, and strong employee experience must all work together. For startups hiring across borders, benefits must adapt too, accounting for local insurance norms, statutory leaves, and retirement rules.

While cost often worries founders, investing early in benefits saves far more by reducing attrition and rehiring expenses later. It also signals to investors and senior hires that the business is built for longevity.

How to evolve employee benefits as you scale

1. Prioritize personalization

Employees value benefits that align with where they are in life and work. For instance, early joiners often appreciate ESOPs and learning allowances that signal growth and ownership.

As teams mature, mid-level employees seek family health cover, childcare support, and richer wellness options. For senior hires, long-term incentives, elder care assistance, and financial advisory services become critical markers of an employer’s commitment to their future security.

2. Design for flexibility, not just policy

Remote and hybrid work are here to stay; benefits must travel with employees. This means offering pan-India health insurance, access to coworking spaces, mental health subscriptions, and digital wellness tools that move with your team.

3.    Enable managers as benefit ambassadors

Many benefits go underused simply because employees aren’t aware of them. Line managers play a key role in bridging this gap. Equip them with simple playbooks, FAQs, and talking points so they can guide their teams effectively.

4.    Keep benefits as a ‘living system’

A policy created once and filed away soon loses relevance. Use regular surveys, usage data, and informal check-ins to adapt your benefits to changing employee needs. This creates a sense of ownership and ensures your investment delivers real impact.

Leveraging technology and data to stay ahead

Forward-looking startups now use analytics and AI to create smarter, more personalized benefits. Leaders in the benefits space now use data to tailor offerings that align with employees’ roles, life stages, and actual usage patterns. Benefits are no longer static; they evolve alongside people and teams.

Mobile-first platforms further simplify enrollment, claims, and day-to-day queries, which is especially valuable for remote and distributed teams. By investing in these innovative tools, organizations signal that they value not just work output but employee wellbeing – anytime, anywhere.

Final thoughts

Scaling is about more than hiring talent. It’s about building systems that are resilient, sustainable, and human-centered. Yet, benefits often remain the most overlooked investment during this transition. Leaders must stop seeing benefits as a cost center and start viewing them as an engine for trust, belonging, and long-term retention.

The startups that evolve their benefits proactively, rather than reactively, will define the next generation of future-ready, people-first organizations.

Scale your benefits with purpose, and your people will scale your success.

Disclaimer: This article reflects the personal views of the author based on their professional experience.

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