Should I Pay My Employees Crypto?
Since remote work has become a routine process, plenty of entrepreneurs have challenged some difficulties with paying employees scattered worldwide. Bank fees and the transactions swiftness made some companies think of switching to payrolling the team with crypto. Is it worth it?
Cryptocurrencies run on a variety of blockchains, which are decentralized peer-to-peer systems. Therefore, no intermediaries are required for transactions. This fact and the corresponding technological architecture solve the issues of cost and speed of transactions.
Also, implementing crypto payments for your staff can be a good reward for those enthusiasts who support the growth of the crypto economy and want to become less dependent on the government and bank regulation.
The high volatility of crypto makes such currencies efficient investment instruments. The employee can earn more in one payment period just because of the currency growth, which is not relatable to traditional fiat money. Volatility may become a problem as the currency may not only grow but dramatically fall. So this advantage is applicable only when your staff knows the risks.
Volatility can become a problem, as the currency can not only rise, but also fall sharply. Therefore, this can only be an advantage when your staff is aware of the risks.
A lot of countries either strictly regulate crypto circulation or prohibit it. When you decide to pay your team with crypto, you need to learn where your employee can use Bitcoin and where they cannot.
Due to these restrictions, the global crypto economy is only in its growth stage when there are a few places where one can use crypto to buy something. However, large companies like Tesla have already started experiments with accepting payments in crypto. This fact will lead to a broader cryptocurrency application.
Your team can also be unskilled for using crypto as payment because blockchain technology is relatively new and sort of complicated. Some of your workers may need some time to get acquainted with this payment method and all opportunities and risks it implies.
The crypto solves problems with high transaction fees and swiftness but adds some new ones. However, you should definitely consider paying your team with crypto but make it carefully. For example, you can start with bonuses or partial payment in crypto while still using traditional banking instruments.
It will please blockchain enthusiasts within your company, prepare people without knowledge of the technology, and test if this form of payment fits your needs. Apollo HR team can help you with implementation of blockchain and crypto payments as well as reveal how metaverse can be useful for managing your team.