They also set out how they've paid the value of these benefits to employees instead, and have started a profit sharing plan. Looks like a better deal to me?

Paid out "this year" - pretty weaselly. Are they going to pay out the value next year too or just cut it from the budget?

The job market is great, if people aren't happy with their comp they can find someone who wants to pay them more.

Answer the question.

They are paying out this year, then introducing a 10% profit share next year. But, as I said, this is just a compensation discussion. If people are unhappy they can renegotiate their comp or find someone else to pay them more.

I don't know what Basecamp's books look like, I don't have the clairvoyance to know what they will look like in the future..

humor a speculative question for a moment: would the "better deal" have been to give employees the option of how they'd like to receive their fringe benefits versus a one-size-fits-all edict, so that those with less tolerance for the volatility of profit sharing can enjoy a bit of stability with such fringe benefits if profits decline?

Especially after, as another commenter mentioned: the tax implication of cash payout?

Cash value != Benefit value.

That you interpret the cash value as being identical shows you trust management over the employees, who this actually effects...

cutting benefits and paying out the cash value of them so you can decide what to do with it. i understand the objections to the other points in the post, but why do you present half the story on this one?

> paying out the cash value of them so you can decide what to do with it.

Doesn't this have tax implications? At least in my country, some types of benefits are income tax exempt.

thats a fair point. no idea if its possible perhaps they could classify it as a lump sum tax exempt benefit rather than a categorical reimbursement based one that mostly goes unused.

still even with a 40% tax hit - i'd take a "cash benefit" over the piles of benefits i know i'm not using.

That wouldn't work for US employees. Any benefits other than very specific allowed categories are taxable income. The wellness benefit, CSA share, etc are already taxable.

They've paid out the benefits for "this year". They could have, but did not, raise base compensation by the value of those benefits.

I wonder what the cash value is, since a large group can usually negotiate a better deal than an individual. Will employees get the amount the company spends per employee, or the amount it would take for them to get the benefit for themselves?