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Benefits
Boost retention with a lifestyle spending account
Employers are turning to lifestyle spending accounts (LSAs) as and as a recruiting tool for new employees. Why? Because experienced employees carry a wealth of knowledge, a variety of skills, and a mature perspective in their roles. There鈥檚 considerable value in developing a successful retention strategy. One report even estimated that replacing a single employee, on average, costs you $15,000! An LSA is a trendy benefit that appeals to a wide array of employee needs.
And beyond recruitment and retention, there are plenty of additional benefits! You can design an LSA how you鈥檇 like, deciding how often funds are distributed into the account and what types of purchases are considered eligible.
Employees are also drawn to these accounts because, while their LSA funds are taxed, the account itself is funded by you, as the employer. Keep reading to learn more about how these accounts benefit employees and why you should consider adding them into your benefits offering mix. Or watch our episode of Benefits below for tips on how to design an LSA that works for you and your employees.
Encourage healthy employee habits
听补苍诲听employee wellness programs聽are trending, and it鈥檚 no surprise that鈥檚 happening at the same time! Though LSAs don鈥檛 have to be health-specific, they can be a part of an effective employee wellness program, which have shown returns on investment聽. Wellness programs increase productivity, influence employee happiness and reduce healthcare claims (helping you and your employees save money). Your LSA can also be part of your overall wellness initiative if you choose for it to cover expenses such as:
- Gym memberships
- Athletic clothes
- Fitbits
- Healthy recipe meal-kit services
Reduce financial stress
聽for decreased productivity at work. Nearly half of all employees say聽finances are their biggest stress trigger, and聽 has led them to either miss work or has negatively impacted their productivity. To encourage your employees to develop better financial habits, offer a lifestyle spending account that covers expenses for student loan repayment assistance or life emergencies (such as when their car breaks down or a home appliance breaks).
Promote leadership and learning opportunities
Your best employees are going to give 100 percent every day they鈥檙e at work. They care deeply about the success of your business, and it鈥檚 important you show them you care too. That can come in the form of聽. For example,聽聽say that professional development and career growth opportunities are very important to them. Encourage your career-oriented employees by providing an LSA that covers the cost of conference tickets, professional development classes or motivational speaker events.
Want to learn more about an LSA? Check out our graphic below.
