In the competitive job market, we want to do our best (as employers) to stand out from the crowd and create a work atmosphere that is desirable for the entire team. If you have been experiencing high turnover in the last few years and as a result, have seen negative impacts on your company, we have an explanation for you.
The job market is booming, and the unemployment rate fell to 3.6 percent in the United States. This figure is the lowest it has been since 1969. As high as this is, your company should be doing everything in its power to hold on to your employees to make them happy. Why? Millennials make up most of the workforce today. These millennials are coming out of college with an excellent education and skills in technology that has always been difficult or even nearly impossible to find. Your young workers know that they are a valuable asset to your company, and if they are not happy with the work environment they are in, they know its easy as one, two, three to apply to a job posting and have an offer by the end of the month.
It sounds like an HR nightmare, doesn’t it? The good news is, it doesn’t have to be! There is a new employee benefits program out there: Lifestyle Spending Accounts. The good news and best part for you as the employers are not many companies have caught onto this new trend, which is why you have the upper hand! Your employees and candidates will be offered a new benefit that is hard to find, and because of that, you will be able to attract the top candidates out there.
Since Lifestyle Spending Accounts are a rising trend and not very common yet, there are some myths about the benefit. Here are some of the most common myths about Lifestyle Spending Accounts:
1. It Requires Too Much Work
Can you imagine offering a paid gym membership to a specific gym for your employers, only to find out that just a handful of your employees actually use the gym that you pay for? You would then have to work to either A.) find another gym or B.) find another perk to offer your employees that hopefully all of them would find a use for.
With a Lifestyle Spending account, you no longer have to put long hours into finding the perfect perk for your limited budget. The hardest part of LSA accounts (if there even is one) is determining how much you want to award each employee. Once you determine the funds, you transfer it into their account. No more calling around to gyms!
2. It's No Different Than a Bonus
Lifestyle Spending Accounts are similar to cash bonuses because they are awarded the money and then get to choose what they want to do with the cash, but there is one big difference. This significant difference is that companies can write it off as a business expense! This is great for those companies who want to reward their hard-working employees but don’t have the money for a huge bonus at the end of the year.
3. It's Essentially A Health Spending Account
Offering your employees health and dental benefits is necessary, and in this day and age, most employees can’t live without it. Some employees provide health spending accounts, but sometimes it's not always what your employees want. Health Spending accounts only cover medical expenses such as vision care or drugstore purchases. The Lifestyle Spending Account can pay for whatever the employer approves, and is designed to enhance your employees’ life through experiences over necessities.
4. It’s Too Structured
As you can probably tell from the myth mentioned above, Lifestyle Spending Accounts are as flexible as you want it to be. If you believe fitness is the best way to boost your employee’s productivity to enhance your work environment, you can use the LSA for fitness purposes. If you want to give your employees the freedom to spend the money in the account on anything that contributes to their happiness, you’re free to approve anything! Do your employees want a spa day after a stressful week? They got it! Do you want to help pay for their family vacation? No problem! The LSA is a resolution for everyone.
5. It’s Unnecessary
If your company is looking to hire the average Joe that has very basic skills that can be found just about anywhere, you may declare LSA accounts unnecessary. If your company is looking to hire the best rock stars out there that will be a precious asset to your company, you need to offer a Lifestyle Spending Account as a perk.
Sure, you can offer your employees higher salaries, but what are you doing to let your team know their hard work is not going unnoticed and you appreciate them? This is what employees want today; to see that they are valued and work in an environment that is comfortable to them. Anyone can offer these skilled candidates a high paying salary, but it is what they do in addition to their salary that lets employees know they are appreciated.
Get Ahead of The Trend with Lifestyle Spending Accounts
The bottom line is Lifestyle Spending Accounts are the perfect perk to offer your employees because it's flexible, easy to manage, better than a bonus, and it makes complete sense if your goal is to hire the best candidates out there.
The trend of Lifestyle Spending Accounts has become popular in Canada, and it is slowly making its way to the HR industry in the United States. Before everyone hops on board with Lifestyle Spending Accounts, get ahead of the game and give your employees what they want.
Want to learn more or ready to get started? Contact Work2live, make the change to a happier and productive work environment!