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How to Pitch Lifestyle Spending Accounts

Cassandra Rose, SPHR, SHRM-SCP

Lifestyle spend­ing accounts (LSAs) are a type of employ­ee ben­e­fit pro­gram that allows work­ers to allo­cate a por­tion of their com­pen­sa­tion towards expens­es relat­ed to their per­son­al life, such as well­ness pro­grams, child care, trans­porta­tion, and even pet care. This type of ben­e­fit pro­gram has become increas­ing­ly pop­u­lar in recent years, as more employ­ers rec­og­nize the impor­tance of sup­port­ing their employ­ees’ work-life bal­ance and over­all well-being.

LSAs offer numer­ous ben­e­fits to both employ­ees and employ­ers. For employ­ees, they pro­vide a greater degree of flex­i­bil­i­ty and auton­o­my over their per­son­al spend­ing, allow­ing them to pri­or­i­tize expens­es that align with their unique needs and lifestyle. Addi­tion­al­ly, LSAs can help alle­vi­ate finan­cial stress and improve over­all job sat­is­fac­tion, which can in turn lead to increased pro­duc­tiv­i­ty and reten­tion. For employ­ers, offer­ing LSAs can help attract and retain top tal­ent, as well as improve employ­ee morale and engage­ment. Fur­ther­more, LSAs are often tax-deductible, mak­ing them a cost-effec­tive way for employ­ers to pro­vide valu­able ben­e­fits to their workforce.

The pur­pose of this arti­cle is to pro­vide guid­ance for indi­vid­u­als look­ing to advo­cate for the imple­men­ta­tion of LSAs in their work­place. By high­light­ing the ben­e­fits of these pro­grams and pro­vid­ing strate­gies for mak­ing a com­pelling case to key deci­sion-mak­ers, the arti­cle aims to help indi­vid­u­als effec­tive­ly com­mu­ni­cate the val­ue of LSAs to their employ­ers and secure sup­port for bud­get­ing for these impor­tant employ­ee benefits.

Speak to the Priorities of Key Decision-Makers

When it comes to the deci­sion-mak­ing process for employ­ee ben­e­fits, HR pro­fes­sion­als should under­stand that it can be a lengthy and com­plex process. It’s impor­tant to iden­ti­fy the key deci­sion-mak­ers involved and under­stand their pri­or­i­ties and con­cerns. In addi­tion to exec­u­tives, finance, and HR pro­fes­sion­als, there may also be oth­er stake­hold­ers involved such as legal and com­pli­ance teams.

To effec­tive­ly make the case for LSAs, HR pro­fes­sion­als should focus on how LSAs can meet the pri­or­i­ties and con­cerns of each stake­hold­er. For exam­ple, high­light­ing the cost-effec­tive­ness of LSAs can address the con­cerns of exec­u­tives, while empha­siz­ing the com­pli­ance and reg­u­la­to­ry aspects of LSAs can address the con­cerns of legal and com­pli­ance teams. By tai­lor­ing the pitch to the spe­cif­ic needs of each stake­hold­er and pro­vid­ing rel­e­vant data, case stud­ies, and HR trends, HR pro­fes­sion­als can increase their chances of suc­cess in secur­ing fund­ing for LSAs.

Focus on the Flexibility and Cost-Effectiveness of LSAs

LSAs offer unique fea­tures that make them an attrac­tive employ­ee ben­e­fit for both employ­ees and employ­ers. The flex­i­bil­i­ty offered by LSAs allows employ­ees to choose how they spend their ben­e­fit dol­lars, which can increase employ­ee sat­is­fac­tion and reten­tion while also reduc­ing admin­is­tra­tive bur­dens for HR pro­fes­sion­als. With LSAs, employ­ees have the free­dom to allo­cate their ben­e­fits in a way that suits their indi­vid­ual needs, such as for health­care, trans­porta­tion, or child­care expenses.

Anoth­er ben­e­fit of LSAs is their cost effi­cien­cy. LSAs can pro­vide employ­ees with greater pur­chas­ing pow­er while also reduc­ing the employ­er’s pay­roll tax­es because they are fund­ed with pre-tax dol­lars. This makes LSAs a cost-effec­tive employ­ee ben­e­fit, allow­ing employ­ers to offer more ben­e­fits to their employ­ees with­out increas­ing their over­all ben­e­fits bud­get. By empha­siz­ing the unique fea­tures and ben­e­fits of LSAs, HR pro­fes­sion­als can tai­lor their mes­sage to the spe­cif­ic needs of their orga­ni­za­tion and make a com­pelling case for invest­ing in this employ­ee benefit.

It’s impor­tant for HR pro­fes­sion­als to keep in mind that dif­fer­ent orga­ni­za­tions have dif­fer­ent pri­or­i­ties and con­cerns when it comes to employ­ee ben­e­fits. By under­stand­ing the spe­cif­ic needs and deci­sion-mak­ing process of their orga­ni­za­tion, HR pro­fes­sion­als can make a strong case for LSAs that is tai­lored to the orga­ni­za­tion’s needs. They can high­light how LSAs can sim­pli­fy ben­e­fits admin­is­tra­tion for orga­ni­za­tions look­ing to reduce admin­is­tra­tive bur­dens or how they can save costs for orga­ni­za­tions con­cerned about the cost of employ­ee benefits.

Demonstrate the Effectiveness of LSAs

When mak­ing the case for lifestyle spend­ing accounts (LSAs), it’s impor­tant to sup­port the argu­ment with real-world data. HR pro­fes­sion­als can look to their own orga­ni­za­tion’s data on employ­ee sat­is­fac­tion sur­veys and reten­tion rates to demon­strate the val­ue of LSAs. For exam­ple, data may show that employ­ees high­ly val­ue the flex­i­bil­i­ty offered by LSAs, lead­ing to increased job sat­is­fac­tion and low­er turnover rates. Addi­tion­al­ly, HR pro­fes­sion­als may high­light the low­er admin­is­tra­tive costs asso­ci­at­ed with LSAs com­pared to oth­er employ­ee ben­e­fits, such as health insur­ance or retire­ment plans. By using data to sup­port their pitch, HR pro­fes­sion­als can help deci­sion-mak­ers under­stand the tan­gi­ble ben­e­fits of invest­ing in LSAs.

While data from with­in the orga­ni­za­tion is ide­al, indus­try bench­marks and data from oth­er orga­ni­za­tions can also pro­vide con­text for the pitch. For exam­ple, HR pro­fes­sion­als may look to indus­try reports or case stud­ies of oth­er orga­ni­za­tions that have suc­cess­ful­ly imple­ment­ed LSAs to high­light the preva­lence and effec­tive­ness of this employ­ee ben­e­fit. Fringe’s 2023 Bench­mark­ing Report may also pro­vide use­ful data on LSAs that can be used to sup­port the argu­ment. By incor­po­rat­ing real-world data and indus­try bench­marks into the pitch, HR pro­fes­sion­als can make a stronger case for LSAs and increase the like­li­hood of secur­ing sup­port from key decision-makers.

Tips for Overcoming Objections to LSAs

As HR pro­fes­sion­als pre­pare to advo­cate for LSAs, it’s impor­tant to antic­i­pate poten­tial objec­tions and have respons­es ready to address them. One com­mon objec­tion is the cost of imple­ment­ing LSAs, but HR pro­fes­sion­als can empha­size the cost-effec­tive­ness of LSAs com­pared to oth­er employ­ee ben­e­fits. By pro­vid­ing data on the poten­tial cost sav­ings and demon­strat­ing the low­er admin­is­tra­tive bur­den asso­ci­at­ed with LSAs, HR pro­fes­sion­als can help deci­sion-mak­ers under­stand the val­ue of this employ­ee benefit.

Anoth­er com­mon objec­tion is the per­ceived com­plex­i­ty of imple­ment­ing LSAs. HR pro­fes­sion­als can address this con­cern by high­light­ing how easy it is to admin­is­ter LSAs through a plat­form like Fringe. By pro­vid­ing clear com­mu­ni­ca­tion and edu­ca­tion­al resources to employ­ees, HR pro­fes­sion­als can help ensure that employ­ees under­stand how LSAs work and how to make the most of their ben­e­fit dol­lars. In addi­tion, HR pro­fes­sion­als can also direct deci­sion-mak­ers to Fringe’s FAQs sec­tion, which address­es many com­mon ques­tions about LSAs.

To address con­cerns about the per­ceived val­ue of LSAs, HR pro­fes­sion­als can pro­vide data on employ­ee sat­is­fac­tion and reten­tion rates, as well as case stud­ies of oth­er orga­ni­za­tions that have suc­cess­ful­ly imple­ment­ed LSAs. By demon­strat­ing how LSAs can pos­i­tive­ly impact employ­ee sat­is­fac­tion and reten­tion, HR pro­fes­sion­als can help deci­sion-mak­ers see the val­ue in invest­ing in this employ­ee ben­e­fit. Ulti­mate­ly, by proac­tive­ly address­ing poten­tial objec­tions and pro­vid­ing deci­sion-mak­ers with the infor­ma­tion they need, HR pro­fes­sion­als can make a com­pelling case for LSAs.


In sum­ma­ry, LSAs offer flex­i­bil­i­ty, cost-effec­tive­ness, and ease of admin­is­tra­tion, mak­ing them a com­pelling employ­ee ben­e­fit for orga­ni­za­tions to con­sid­er. To make a con­vinc­ing case for LSAs, HR pro­fes­sion­als should tai­lor their pitch to the spe­cif­ic needs and pri­or­i­ties of their orga­ni­za­tion. It’s also impor­tant to address poten­tial objec­tions and pro­vide data on employ­ee sat­is­fac­tion and reten­tion rates, as well as case stud­ies of suc­cess­ful implementations.

Ulti­mate­ly, the strongest argu­ments for bud­get­ing for LSAs will be based on the unique pri­or­i­ties and deci­sion-mak­ers of each orga­ni­za­tion. We encour­age HR pro­fes­sion­als to reach out to our team to learn more about how Fringe can help sup­port their orga­ni­za­tion’s employ­ee ben­e­fits pro­gram. Addi­tion­al­ly, we offer a range of resources, includ­ing a free tri­al, pod­cast episodes, and arti­cles, to help sup­port HR pro­fes­sion­als in mak­ing their case for LSAs. Con­tact us today to learn more.

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