We hear about all these huge companies like Facebook, Apple, Microsoft that offer incredible benefits. It’s no surprise that these companies attract the best talent out there, so it’s easy to get discouraged when we can barely compete with the big companies that offer all the best benefits. Or can we? You might not be able to provide a full year of paid parental leave, but is there something else you can offer your team?
Let’s be honest. Unless you are Facebook or Apple, you are like the majority of companies out there that can’t afford to offer insane benefits like $4,000 in baby cash to new parents. To be clear, most companies don’t provide benefits like that. There are still some ways you can compete to attract top talent, so don’t despair.
All is not lost
On a smaller scale, offering your employees fitness memberships, spa services, or assistance with daycare can be plenty to help attract and retain top talent. It might not be the paid year of parental leave, but at the end of the day, you are doing what you can to show your employees that you are a company that cares about its employees. You demonstrate that you are doing what you can to prioritize their well-being and invest in their careers. That speaks volumes to your employees!
Give Your Team What They Really Want
Since you cannot afford to offer your employees crazy benefits that cost you a ton of money, it’s essential to cater to your employee’s taste. For Instance, offering your employees the perk of access to sports events and entertainment might work for a handful of people but what about the others? Maybe you have several employees who would benefit much more from financial assistance for daycare or a gym membership.
The truth is, not everyone will benefit from a gym membership or any other specific benefit. Everyone is different and gets pleasure from various interests. That’s why it is so important to offer employees a benefit that is as individual as they are. A lifestyle spending account could be the answer you are looking for. A lifestyle spending account (LSA) enables each team member to select what they want. Better yet, lifestyle spending accounts are easy to manage for executives and HR professionals.
What Are Lifestyle Spending Accounts?
A lifestyle spending account is an employer-funded account that is dedicated to employee perks. Rather than guessing what perks your employees want, Lifestyle spending accounts help employers put the money and choice in the employee’s hands so employees can get what they want and need the most.
Lifestyle Spending Accounts can contribute to various experiences to enhance employee productivity and work-life balance. Does your employee love going to the gym to relieve stress at the end of the workday? What about spa days? Would your team benefit from a day driving a racecar? Or maybe an employee can use some financial assistance paying for a vacation. Lifestyle spending accounts are flexible and can be used for just about anything.
Lifestyle Spending accounts also don’t have to be spent on one thing. As an employer, you can put $100 in an employee’s account for the month, and that money can go to a gym membership fee, learning experiences, and a lunch outing.
Establishing an LSA
The taxability of lifestyle spending accounts avoids many of the legal constraints placed on tax-advantaged accounts. Because of this, lifestyle savings accounts are easy for HR managers to set up and maintain. Here are a few simple steps to get started:
Set a budget
An advantage of lifestyle spending accounts is how flexible it is. Unlike a massive bonus at the end of the year, you don’t have to add a large amount of money to it (unless you wanted to.) You can start with as little as $100 per month and increase it if necessary. Along with the budget, you must keep in mind what you will do with the funds should an employee leave your company. Will they have access to these funds, or will they lose it?
Make it Relevant
Lifestyle Savings Accounts could be as broad or as limited as you want it to be. For instance, if you wanted the funds to only be put towards health and wellness, you can limit the use to only those sorts of expenses. Or, if you wanted to allow your employees to use the account as broadly as they wish, you can do this too. If you are unsure of what exactly you want to approve for your lifestyle savings account, Work2Live would be happy to guide you in the right direction.
Communicate
Another advantage of a lifestyle savings account is that they are relatively new. This gives you the upper hand to get better employees out there in the job market because many employers in the US have not caught onto the trend, although it is increasingly popular in Canada and other countries outside the US. As a result, many employees will be unfamiliar with lifestyle savings accounts. Employees will need time to understand how they work and how to claim the funds in their accounts. It would be best if you also gave a detailed explanation as to how employees can use the funds.
Top it off with pampering your employees
As you can see, although $4,000 in baby cash from Facebook sounds appealing, you don’t need to have crazy, unheard of benefits to attract top talent. Little things are what goes a long way. Always keep your work kitchen stocked with water bottles, coffee, soda and snacks. Try some new furniture out in a break room so your employees can sit back and have a nice, peaceful break. Doing the little inexpensive things, combined with benefits such as a lifestyle spending account can go a long way and won’t break the bank.
Lifestyle Spending Accounts are becoming increasingly popular in the US, and we urge you to get onto the trend while it’s still unique! The top talent is out there- you just have to get creative in thinking of ways to attract them. Want to learn more about Lifestyle Spending Accounts? Contact Work2Live for a free demo!