Why every company should offer a wellness reimbursement
Everything employers should consider when implementing a wellness reimbursement program. How Lifestyle Spending Accounts drive engagement.
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Why every company should offer a wellness reimbursement
Employers are always looking for ways to attract and retain top talent. How do employers stay ahead of the curve and ensure they are offering a benefits package that meets the requirements of top-talent employees? It may seem at times that the packages and needs of employees are constantly changing. How do employers keep up with the constant demand? One such program that has gained popularity is wellness reimbursement.
A wellness reimbursement is an employee benefit that has gained popularity in recent years due to its ability to address the physical and mental health needs of employees. The program usually involves an employer reimbursing their employees for eligible expenses related to health and wellness. This could include gym reimbursements, mental-health reimbursements, and other health-related expenses. The benefits of wellness reimbursement are numerous, and in this blog post, we'll explore them in detail and how employers can implement such a program and even take them to the next level for higher utilization.
Benefits of a wellness reimbursement
The only constant these past few years has been change. Workers have had to look out for their health, job security, how much money they take home and so much more. The demands from employees over the years continue to rise, and employers continue to try and offset the demands by offering new benefits.
Wellness reimbursements can significantly improve employee morale and job satisfaction. In the wake of “quiet quitting” and employers struggling to figure out how to keep employees engaged, employers took to new point solutions and wellness vendors to solve this problem. In regards to wellness, when employees feel supported in their wellness journey, they're more likely to feel valued and appreciated by their employer. This can translate to increased loyalty and reduced turnover rates.
Wellness reimbursement programs can also help employers reduce healthcare costs. When employees prioritize their health and wellness, they're less likely to require medical treatment, which can quickly add up.
Wellness reimbursements and Lifestyle Spending Accounts (LSAs)
When selecting a wellness reimbursement program, it's crucial to identify your company's wellness needs. This will help you determine which program is most appropriate for your employees. Additionally, you'll need to consider your budget and available resources. Some programs may require a significant financial investment, while others are more budget friendly.
Many companies are turning to the Lifestyle Spending Account to solve their wellness reimbursement needs. With a high utilization rate, Lifestyle Spending Accounts have proven to be a way employers can provide the most flexible benefits most cost-effectively.
Lifestyle Spending Accounts (LSAs) bridge the gap between what employees want and what companies have traditionally provided. They are essentially an allowance given by employers to employees who can use the funds, within certain constraints, to meet their individual needs.
Employees are empowered to discover and choose meaningful benefits that fit their personal lifestyles and needs. Employers are able to move away from single-solution vendors and replace point-solution frustrations with endless options for customization, inflation-proof benefits budgets, and the agility to respond to today’s evolving world.
It’s time to expand the overall definition of wellness into a more flexible option. One that gives employees more flexibility in deciding what wellness means to them.
Tips for the most successful wellness reimbursement program
Employee engagement and communication are critical factors in the success of any wellness reimbursement program. Employees should feel involved in the process and understand the benefits of participating. Additionally, providing incentives and rewards can encourage participation and motivation.
Tracking and analyzing program effectiveness is also crucial. This can help you make informed decisions about the program's future and identify areas for improvement.
Zoom completely transformed its employee wellness benefits program with Forma and saw a dramatic increase in engagement with their members. Originally, the organization was offering a wellness program with $300 a month available to all employees across the globe for gym memberships. However, the benefit only had about 10% utilization.
Having conducted employee engagement surveys and speaking with employees during open enrollment, the Zoom HR team discovered that employees were struggling with vendor fatigue and that the existing programs had low engagement. As a means to better utilize benefits dollars and support a workforce in different life stages.
Sheila Kreuger, Head of Global Benefits of Zoom explained, “the Lifestyle Spending Account was the number one benefit that we offered.” After implementing the Lifestyle Spending Account flexibility they saw engagement jump to 83%!
Final considerations for wellness reimbursements
Inadequate funding and resources can derail even the most well-intentioned wellness reimbursement program. It's essential to ensure that you have the resources necessary to implement and sustain the program. Lifestyle Spending Accounts may be a great idea to stretch HR budgets further as wellness programs are considered. LSAs will be able to encapsulate wellness, as employees and employers define wellness (not a point-solution vendor).
Additionally, lack of employee participation and engagement can be a significant barrier to success. Choosing a program that aligns with your company's values and goals can help address this issue.
Wellness reimbursement is a valuable benefit that can have a significant impact on employees and employers alike. By choosing the right program, engaging employees, and providing incentives, companies can reap the benefits of a healthy and productive workforce. With proper planning and implementation, wellness reimbursement programs can be a win-win for everyone involved.
To learn more about Lifestyle Spending Accounts, the three ways to pay (Forma store, card, and claim reimbursements), <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">schedule a consultation</span> with one of our experts.