An AI startup in the United States is spending $1.7 million every year to help employees live close to the office but there's more to the story. At New York-based Rilla, employees who receive the housing benefit are also part of a demanding culture where the typical schedule is 12 hours a day, six days a week, adding up to a 72-hour workweek.
Rilla, an AI-powered sales coaching company based in Williamsburg, Brooklyn, offers an annual housing stipend of $18,000 to employees who choose to live within about a 10-minute bike ride of its headquarters. CEO Sebastian Jimenez said the goal is to eliminate long commutes, giving employees more time to rest, exercise and focus on doing their best work.
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“We’re not trying to coddle people,” CEO Sebastian Jimenez recently told Business Insider. “A lot of companies offer perks that end up distracting employees. We ask ourselves, ‘Can this help someone get into the flow?’”
“That’s why we pay for three meals a day. It’s why we’re building a gym with a sauna and cold plunge,” he continued. “And it’s why we offer employees an $18,000 annual housing stipend if they choose to live within about a 10-minute bike ride of the office.”
Why Rilla pays employees to live near the office
Rilla offers an annual housing stipend of $18,000 to employees who choose to live within about a 10-minute bike ride of its Williamsburg headquarters.
Around 80% of the company's roughly 120 employees use the optional benefit, bringing the total annual cost of the programme to nearly $1.7 million.
The allowance helps offset the high cost of living in Williamsburg, one of New York City's most expensive neighbourhoods, where studio apartments often rent for around $4,000 a month.
According to Jimenez, reducing commuting time gives employees more time for activities outside work, whether that means exercising, resting or spending time with family. The company has also hired Dr Joe Allen, a Harvard healthy-buildings expert, to help select an office with ventilation systems designed to improve concentration and cognitive performance.
A multimillion-dollar investment in employees
Housing support is only one part of Rilla's spending on staff.
The company spends about $37,000 per employee every year on benefits, amounting to roughly $4.4 million annually across its workforce.
Jimenez believes the investment pays off.
He claims each engineer at Rilla generates between $4 million and $5 million in annual revenue, making the benefits package worthwhile from a business perspective.
The company has also committed to its long-term strategy by signing a 10-year lease for its office.
The catch: A 72-hour workweek
While the benefits package is generous, it comes with demanding expectations. Employees generally work 12-hour shifts, six days a week, creating a 72-hour work schedule.
Jimenez has previously described Rilla's culture as "insanely hardcore." He stated the company intentionally hires people who thrive in high-pressure environments, including former Division I athletes, founders and other highly ambitious professionals.
Rather than appealing to everyone, the company targets employees who actively want an intense work environment.
