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How to make employees feel valued with LSAs
One of the most important aspects of being a successful business leader is creating a work environment where employees feel valued and appreciated. There are many ways to do this, and one of the most effective is to offer benefits that support and enhance employees' personal lives. In this blog, we'll take a closer look at Lifestyle Spending Accounts and how to make employees feel valued.
LSA's are more than just gym memberships and home office reimbursements. LSA's are a proven way to encourage employees to use their benefits, engage everyone, and make people feel a part of the company culture.
Listen to these employees describe the value of an LSA:
"I'm excited about an amazing reimbursement for me as a parent. I think Forma’s a huge plus because I feel that the company cares for my well-being and for the well-being of my family. It's definitely a retention bonus for me." Marina Carpova Global Director of Payroll at DoubleVerify
"I was able to use the program to cover piano lessons, which I had promised my oldest daughter she could start when she turned 5." Sofia Safety and Security Manager Palo Alto Networks
"I can’t believe that this benefit will pay for my housekeeper!" A Splunker’s response to their eligible expenses and Lifestyle Spending Account coverage.
Lifestyle Spending Accounts are a flexible benefits programs. They allow employees to use pre-tax dollars to pay for personal expenses. These expenses could include child care, education, or health and wellness expenses. The money is deducted from an employee's paycheck and placed into an account that they can use to pay for these expenses. These accounts are typically offered as part of an employer's benefits package and can be a valuable tool for attracting and retaining top talent.
Wendy Macias, Director of Global Benefits at Dropbox describes LSA's in this way, “ We've had people ask about surfboards or guitars with amplifiers and our stance is that if something is going to refill your soul or fills that reservoir of goodness in your heart, then do it! That's what this is for!”
Purchasing a Lifestyle Spending Account is like purchasing a reservoir of goodness in your heart, which in turn leads to higher employee satisfaction.
Why are Lifestyle Spending Accounts Important for Employee Satisfaction?
One of the biggest reasons why Lifestyle Spending Accounts are so important for employee satisfaction is that they help employees balance their work and personal lives. Employers are offering financial support for things such as child care and education. This makes it easier for employees to meet their personal needs while still being able to focus on work.
Listen to how this one member describes how LSA’s helps them pay for their internet service. “My wife and I are both working from home now, so we had to upgrade our internet service. Having that expense be something that I don’t have to take on is huge. Mid-Market Sales Manager at Affirm
Additionally, Lifestyle Spending Accounts are a great way to show employees that their employer cares about their well-being and is committed to helping them achieve their goals. By offering these accounts, employers can demonstrate their investment in their employees' personal and professional growth, which can help foster a positive work environment and promote employee satisfaction.
Implementing Lifestyle Spending Accounts in the workplace
To implement Lifestyle Spending Accounts in your workplace, start by researching the different types of accounts available and determining which ones would be most beneficial for your employees. You'll also want to consider factors like cost, administrative requirements, and the impact on your benefits budget.
Be sure to check out the Forma Research 2022 Lifestyle Spending Accounts (LSA) benchmark report. Companies are shifting resources toward a benefits strategy that prioritizes choice and flexibility to support employees. A 2021 Gartner study on retention planning saw that 74 percent of HR leaders plan to offer more flexible options in their strategy. A Glassdoor survey found that 94 percent of employees want benefits that meaningfully impact their quality of life, health, and well-being. As such, a personalized, flexible benefits strategy is key. This report shows the types of accounts employees are loving and utilizing.
Next, research Lifestyle Spending Account vendors. Things to consider when choosing a vendor include customer service and support, LSA administration method, and international availability.
Next, communicate the availability of the accounts to your employees and provide them with clear and concise information about how they can enroll and use the accounts. Make sure to educate employees about the benefits of these accounts and how they can use them to meet their personal needs. Forma’s utilization rate of their LSA’s averages 85%.
Finally, be sure to monitor the use of these accounts and make any necessary changes or adjustments based on employee feedback. This will help ensure that the accounts are being used in the way they were intended and that they're making a positive impact on your employees' lives.
In conclusion, Lifestyle Spending Accounts are a powerful tool for making employees feel valued and appreciated. Employers can help employees balance their work and personal lives by offering financial support for their personal needs. This can lead to higher levels of employee satisfaction and improved job performance.
For more information on lifestyle benefits for employees, please <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">schedule a consultation</span> with one of our experts.