A lifestyle spending account (LSA), also known as a life account, choice account, or perk allowance, is a type of benefit program that provides employees with a fixed amount of money to spend on various lifestyle expenses. These can include things like fitness classes, hobbies, travel, and other personal pursuits that contribute to an employee’s overall well-being and work-life balance. LSAs are becoming increasingly popular as employers recognize the importance of providing flexible benefits that cater to the unique needs and interests of their employees.
According to our benchmarking report, the demand for LSAs has risen dramatically in recent years, with 70% of employers planning to offer them in the next 12 months. This trend can be attributed to several factors, including the growing need for flexibility in the workplace, evolving employee expectations, and the desire to define one’s own well-being. 95% of employees say flexibility is important in a wellbeing offering. By offering LSAs, employers can empower their employees to take control of their own lives and find the balance that works best for them. In this article, we will focus specifically on how LSAs work on the Fringe platform, providing employers with valuable insights into how they can implement this benefit to attract and retain top talent. To learn more about the rising popularity of LSAs and other benchmarking data, download our 2023 Benchmarking Report and gain valuable insights into the evolving landscape of employee benefits.
Why LSAs Provide Flexibility for an Evolving Workforce
The workforce has undergone a significant evolution over the past few decades. Traditionally, employees were provided with all the tools necessary to perform their job, including a computer, phone, desk, and chair. However, today’s workforce demands more than just the basic tools. They want a workplace that caters to their individual needs and interests, and provides a holistic approach to well-being. For instance, research shows that millennials prioritize a healthy work-life balance, flexible work arrangements, and a sense of purpose and fulfillment in their careers. This shift in employee expectations has forced employers to adapt their approach to recruitment and retention, and offer more than just a salary and benefits package.
As a result, companies are evolving their efforts to attract top talent. In addition to traditional benefits like 401k plans and healthcare coverage, employers are now offering flexible benefits, stipends, and hybrid work opportunities. These lifestyle benefits can include things like wellness programs, mental health resources, professional development opportunities, and more. This shift towards a more holistic approach to well-being has proven to be an effective way for employers to retain top talent and boost employee morale. Additionally, the COVID-19 pandemic has accelerated this shift towards more flexible benefits, with many employees now expecting hybrid work arrangements that provide a better work-life balance. At Fringe, we recognize the importance of catering to the needs and expectations of the modern workforce, which is why we created our platform to help employers provide lifestyle benefits that cater to their employees’ unique needs.
Benefits of Lifestyle Spending Accounts
The popularity of LSAs can be attributed to several broader trends in employee benefits. One of these trends is the growing demand for flexibility in employee benefits. With the workforce becoming increasingly diverse, employees are seeking benefits packages that cater to their individual needs and interests. LSAs can offer this level of customization, allowing employees to invest in benefits that are most relevant to them. Additionally, LSAs allow for greater consolidation of people programs, providing employees with a single platform to access all of their benefits.
By offering LSAs, employers can empower their employees to take control of their well-being. LSAs provide employees with more control over their benefits and allow them to invest in their personal well-being. This, in turn, can lead to increased employee satisfaction and improved health outcomes. Furthermore, LSAs can help employers attract and retain top talent, as they provide a unique and customizable benefits package that meets the evolving needs of the modern workforce. Employers can also save costs by offering LSAs, as they can allocate funds in a more targeted manner and reduce waste. With the Fringe platform, employers can easily offer LSAs to their employees, providing a seamless and customizable experience that caters to the unique needs of each employee.
It is important to note that LSAs are classified as taxable income for employees if spent. However, the benefits of LSAs for both employees and employers far outweigh this potential drawback. By offering LSAs on the Fringe platform, employers can enhance the employee experience, reduce employee turnover, and provide a more holistic approach to employee benefits.
How LSAs on the Fringe Platform Work
At Fringe, we offer an innovative solution to meet the needs of modern employees and employers with our LSAs. Our platform allows employers to create customizable benefit packages that meet the diverse needs of their workforce, while empowering employees to take control of their well-being. Fringe’s LSAs can cover a wide range of expenses, including wellness programs, fitness equipment, and mental health services, to name a few. Our platform’s flexible design means that employees have the freedom to choose what matters most to them.
One of the benefits of using Fringe’s LSAs is the ease of use. Employees can easily track their expenses, and if needed, their expenses require no reimbursement. Fringe’s platform provides users with a simple and straightforward experience, making it easy for employees to take advantage of their LSA benefits. Whether an employee needs a gym membership or therapy sessions, Fringe provides a user-friendly experience for employees to access their benefits. Interested in seeing the Fringe platform for yourself? Create a free demo account and explore Fringe today.
In summary, LSAs are becoming increasingly popular due to the evolving needs and expectations of the workforce. LSAs offer greater flexibility, improved health outcomes, and cost savings for both employers and employees. The Fringe platform offers LSAs as a customizable benefit solution that allows employees to invest in their well-being and have more control over their benefits.
Through LSAs on the Fringe platform, employees can cover expenses related to wellness programs, fitness equipment, mental health services, and more. The platform also offers budgeting allocation, expense tracking and approval, and general account management features. With LSAs on Fringe, employers can attract and retain top talent, while employees can experience increased satisfaction and control over their benefits.
To learn more about how Fringe LSAs can benefit your organization, reach out to the Fringe team and get started today.