From Health Insurance to Cold Brew: The Evolution of Workplace Benefits and the War for Talent

A Brief History of Workplace Benefits: From Health Plans to Office Food Delivery

The origins of employer-sponsored benefits in the U.S. trace back to World War II. With government-imposed wage controls in place, employers needed creative ways to attract and retain workers. Enter health insurance. Because benefits were not subject to wage caps — and later received favorable tax treatment — employer-sponsored health plans became widespread. In 1943, the IRS ruled that employer contributions to health insurance were tax-exempt, and in 1954, the IRS codified the tax-free status of these benefits.

This set the stage for what became a fundamental pillar of the American employment model: employer-driven group benefits. Companies could pool employees together to purchase insurance at scale, reducing individual risk and lowering costs. Over time, the range of benefits expanded — pensions, life insurance, and eventually 401(k) plans joined the mix.

But the logic remained consistent: employers could unlock economies of scale by buying for the group, while offering something employees couldn’t easily access (or afford) on their own.

Why Group Benefits (Including Office Snacks) Make Financial Sense

Just like with corporate food service or modern office kitchens, scale allows companies to provide employees with more variety and better value. These employer-sponsored benefits offer two significant financial advantages to employees:
Group Purchasing Power: The average employee buying individually simply cannot match the pricing, quality, or variety that an employer can negotiate by purchasing for a group. Whether it’s insurance premiums or curated cold brew, scale unlocks access and value.

Pre-Tax Funding: Perhaps even more important is that these benefits are often paid for with pre-tax dollars. If an employee were to spend $5 a day on snacks and drinks out-of-pocket, they’d have to earn closer to $8 (after taxes) to do so. But if the company provides these items directly, as part of a benefit package, the employee receives that value tax-free. It’s like giving someone a raise without increasing payroll.

From Healthcare to Hospitality: The New Workplace Arms Race

Fast-forward to the 21st century, and the battleground has shifted. While health insurance remains critical, it’s now table stakes — particularly in a competitive labor market where culture, experience, and flexibility matter just as much as compensation. In tech hubs, corporate headquarters, and hybrid workplaces around the country, companies are investing in quality-of-life benefits that reflect a deeper understanding of what employees value day to day.

That’s where Crafty comes in.

Today’s best employers use Crafty to offer curated office pantry programs that go far beyond the vending machine. Cold brew on tap, locally sourced snacks, kombucha, plant-based options, and rotating seasonal products aren’t just perks. They’re part of a strategy to enhance the employee experience in the following ways:

• Create a welcoming, energizing in-office experience,
• Encourage informal collaboration and community,
• Signal investment in employee well-being.

And just like health insurance in the 1940s, Crafty enables companies to deliver value at scale. By centralizing purchasing across hundreds of clients and sourcing from top CPG brands and local suppliers, Crafty helps employers provide a boutique experience at a fraction of the cost, all while funding it with pre-tax dollars.

Benefits Reflect Company Values and Culture

If traditional benefits said “we’ll take care of you,” modern benefits say “we understand you.” Employees want to feel seen and supported, not just insured. That’s why the most forward-thinking companies are investing in workplace food and beverage experiences that reflect their values: sustainability, diversity, wellness, and joy.

Crafty’s role in this new ecosystem isn’t just about snacks — it’s about helping companies deliver a daily expression of their culture, one pantry at a time.

From Group Health to Group Hospitality
Whether it’s group health insurance or group cold brew, the principles remain the same: shared purchasing power, tax efficiency, and high-value experiences for employees. What’s changed is the definition of “meaningful.”

The war for talent is ongoing — and the best benefits don’t just meet needs, they exceed expectations. With Crafty, companies are bringing that mindset to the pantry.

Ready to evolve your office benefits? Explore how Crafty’s office snack delivery and modern pantry programs can transform your workplace: craftydelivers.com