At Ethena, building connections outside of work is less about forcing friendships and more about creating organic opportunities for collaboration. The remote-first compliance software company offers employees up to $100 a month to spend time with their colleagues outside of work, turning casual meetups into meaningful moments of engagement.

From Office Space to Employee Connection

Ethena’s VP of People, Melanie Naranjo, shared how this innovative program came to life. Before the pandemic, Ethena maintained a Brooklyn office designed for 50 employees. But as employees relocated and remote work took hold, the space became underutilized.

Realizing the engagement benefits of in-person interactions, the company repurposed its office budget into a program that reimburses employees for spending time together. Whether it’s grabbing drinks, seeing a Broadway show, or kayaking, the goal is the same: fostering meaningful relationships.

The Strategy Behind the Perk

The $100 monthly stipend can be saved for up to three months for larger group outings or pooled with colleagues for shared experiences. There are no restrictions—any activity involving two or more employees qualifies.

This approach shifts the focus from HR-mandated events to employee-driven engagement. Naranjo explained that traditional company-sponsored happy hours often feel obligatory and don’t necessarily impact retention. By empowering employees to choose their activities, Ethena encourages genuine connections that are more impactful for relationship-building.

“We’re optimizing for retention of high performers, not avoiding every potential risk,” Naranjo said. “Strong relationships outside of work can prevent misunderstandings and foster collaboration in a remote-first environment.”

The Results Speak for Themselves

Ethena has fully embraced remote work, even abandoning its office space altogether. Employees who feel they need an office environment can request a coworking space membership, but the focus remains on building strong personal connections.

The program is part of a broader engagement strategy that includes company offsites and other perks. Naranjo believes these initiatives provide a more effective measure of engagement than any single event or policy.

Rethinking Engagement in the Modern Workplace

Ethena’s innovative approach challenges traditional engagement models, proving that meaningful employee experiences don’t require an office—or even structured corporate events. By trusting employees to choose how they connect, the company fosters stronger relationships, improves retention, and empowers its workforce to succeed.