Employee lifestyle benefits guide for employers
The employee lifestyle benefits guide for employers. See why flexible benefits and Lifestyle Spending Accounts are a must-have in the workplace.
Employee lifestyle benefits guide for employers
Employee lifestyle benefits are no longer just a bonus perk. In today's competitive job market, they are a crucial tool for attracting and retaining top talent. Employers fund these benefits to create a happier company culture and a more productive workforce.
What are employee lifestyle benefits and why do they matter?
Employee lifestyle benefits are non-wage benefits that companies offer their employees to improve their quality of life. These benefits can range from health and wellness programs to flexible work arrangements and beyond.
When employers offer lifestyle benefits, they can create a more supportive and positive work environment. This environment fosters better employee engagement, productivity, and overall satisfaction.
Employees feel more motivated and loyal when they know their employer cares about their well-being. This leads to better work performance. Employees feel more motivated and loyal when they know their employer cares about their well-being.
Lifestyle benefits and Lifestyle Spending Accounts
Salary and core benefits such as health insurance, dental, and vision coverage used to be sufficient to entice top talent.
However, many employees now realize these benefits don't fully meet their needs. Employers have realized this and are investing more in lifestyle benefits. In 2019, about 80 percent of large U.S. employers offered workplace wellness programs to supplement their traditional benefit offerings.
Lifestyle Spending Accounts (LSAs) are one solution that delivers on this mandate to provide more for the employee. They reward team members for diligent work and serve as a pillar to support the team. When their benefits work for their individual needs, employees feel more appreciated. This leads to increased engagement, productivity, and, ultimately, higher revenue.
By using LSAs, you can satisfy even the most unique needs for your team. This will demonstrate your company's commitment to looking after its employees in and out of the workplace.
How employers can design effective lifestyle benefits packages
The following cases show how customized lifestyle benefit plans are becoming more popular:
A 33-year-old mother of five lives in an apartment building with a full-service gym. She has little use for a gym membership subsidy but might appreciate assistance with the cost of daytime childcare.
A 28-year-old, recent college athlete is in healthy physical condition. He has been off his parents' health plan for two years. He has just enrolled in a new health plan with a high deductible.
A 55-year-old father just sold his gas vehicle van for a brand new, all-electric sedan. A gas subsidy is no longer necessary. However, he would value a way to pay for the electric vehicle (EV) charging unit and its installation.
These highlight only a few examples of how employees’ needs vary in the workplace. The onus is on companies to remain competitive and productive in today's environment. To accomplish this, they must offer benefits. These benefits must adapt and meet the diverse needs of all their current and potential employees.
Popular lifestyle employee benefits
There are many types of employee lifestyle benefits to choose from. With a Lifestyle Spending Account, the options are truly endless. Employees are empowered to discover and choose meaningful benefits that fit their personal lifestyles and needs.
Employers are moving away from vendors that only offer one solution. This is in order to replace point-solution frustrations with a solution with many options. Additionally, employers are looking for inflation-proof benefits and the agility to respond to today's changing world.
In 2022, Forma Research gathered data to gather better information about the design, strategy, and usage of flexible benefits. The full data is presented in the 2022 Lifestyle Spending Accounts benchmark report.
The top ten lifestyle benefits account offered were:
- Lifestyle: An employer can offer its employees a lifestyle account. This account allows them to spend on items or activities that will improve their lifestyle with designated eligible expenses. This account may cover expenses such as gym memberships, travel, entertainment, or personal hobbies.
- Wellness: A wellness account is an account that is used to cover expenses related to an employee's health and well-being. It may cover expenses such as gym memberships, wellness classes, nutritionist consultations, mental health therapy, or preventative health screenings.
- Work from home: A work-from-home account is an account used to cover expenses related to working from home. It may cover expenses such as home office equipment, internet service, and home utilities like electricity and heating.
- Learning: A learning account is an account that is used to cover expenses related to an employee's educational or professional development. It may cover expenses such as tuition fees, training courses, books, or conferences.
- Family formation: A family formation spending account is an account that is used to cover expenses related to starting a family. It may cover expenses such as fertility treatments, adoption fees, or expenses related to having a child.
- Caregiving: A caregiving account is an account that is used to cover expenses related to caring for a dependent. It may cover expenses such as childcare, eldercare, or expenses related to caring for a disabled or special needs individual.
- Rewards: A rewards spending account is an account that is used to reward employees for their performance or achievements. This may cover expenses such as gift cards, travel, or other perks.
- Tuition/student loans: an account used to cover expenses related to an employee's education. It is a spending account specifically for tuition reimbursement and student loans. It may cover expenses such as tuition fees, textbooks, or student loan payments.
- Team building: A team-building account is used to cover expenses related to team-building activities or events. It may cover expenses such as retreats, team-building exercises, or social events.
- Commute: A commute spending account is an account that is used to cover expenses related to an employee's commute to work. It may cover expenses such as public transportation costs, parking fees, or bike share memberships.
How Tripadvisor launched global lifestyle benefits with Forma
Patti Petrella, Sr. Director of Global Benefits at Tripadvisor, had a lifestyle benefits program in place.
As the company grew, it realized it had to scale it to make it more equitable and global. There was a need to support employees' diverse needs on a global scale. At the same time, it was necessary to manage costs and ease administrative burdens placed on the HR team.
After discussing internally, Tripadvisor opted for one expansive Lifestyle Spending Account (LSA). Petrella offered details about the LSA, saying, “It includes everything with the exception of home renovations. We offer the opportunity for an employee to make a purchase, but it can be for somebody else in their family. ” With a 72% usage rate and 98% CSAT score, they have a winning program on their hands.
Petrella noted, "We are constantly delighting our employees." She continued, "I have to say we delighted them the most with our lifestyle benefit."
If you're ready to take your employee lifestyle benefits to the next level, <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">schedule a consultation</span> with our team today! Together, we can create a customized benefits package that meets the unique needs of your workforce.