Pluxee, formerly known as Sodexo’s Benefits and Rewards services unit, has ambitious plans to expand its technology and data operations in 2024.
According to CEO Aurelien Sonet, the company aims to hire approximately 1,000 employees to capitalize on the growing demand for employee benefits in the face of new work trends and increasing inflation.
Sodexo, recognizing the opportunity to support employers grappling with the cost-of-living crisis without raising wages, intends to spin off and list its voucher unit on the stock exchange in 2024. This move reflects the company’s confidence in the voucher business’s positive performance.
Sonet emphasized the immense potential of the employee benefits market, estimating a spending potential of around 1 trillion euros from companies. He highlighted that the market is still relatively untapped, particularly among small and mid-size companies that have yet to provide comprehensive employee benefits.
Pluxee aims to invest 10 percent of its turnover in technology each year until 2025, expanding its offerings to help clients effectively manage their employees’ hybrid work arrangements and foster a satisfying work-life balance.
In addition, Pluxee has noticed an increasing interest from companies in mobility solutions that support eco-friendly commuting, such as bikes, scooters, and car sharing. Sonet revealed that these solutions are attracting clients who are striving to reduce their carbon footprint associated with commuting.
Edenred, a smaller French competitor, experienced growth in operating revenue during the first quarter of the year by providing meal tickets and fuel cards to help employees cope with inflation. Edenred recently joined France’s blue-chip index, CAC 40.
With a presence in 31 countries and a workforce of 5,000, Pluxee is targeting a full-year organic revenue growth of nearly 20 percent and an underlying operating profit margin of approximately 32 percent.
Sodexo’s voucher business reported a core profit of 162 million euros ($177 million) in the first half of 2023.
