With the increasing rate of emerging graduates, the job market has become more competitive than ever. On one hand, it’s great for employers because you have tons of qualified candidates out there, but on the other hand, you are also competing with other companies to get those top candidates that will really make a difference to your business.
Unfortunately, candidates out there don’t just value a big paycheck these days. Candidates in the job market today are looking for a decent salary, benefits and a company that promotes a flexible, enjoyable lifestyle. Many organizations have found a niche that helps them to stand out from the crowd, and an emerging trend in the HR industry can help you do this yourself. This trend is offering employees the benefit of having a lifestyle spending account (LSA.)
The greatest advantage to this benefit is that not many companies in the United States have started to offer it yet(although LSA’s are big in other countries,) which allows you to stand out from everyone else.
A lifestyle spending account is an employer-funded account that is dedicated to employee perks. These perks can be anything from a gym membership to drinks with coworkers. The goal of this benefit is to enhance the work environment by providing great opportunities outside of it. Employees find these perks incredibly motivating, helping LSAs to stand out from run-of-the-mill perks. Here are some of the reasons why and how these accounts will motivate your team.
1.) Lifestyle spending accounts are flexible
Some companies offer their employees perks such as paid lunches, gym memberships or tickets to entertainment events. The problem with specific employee perks is not everyone can find the value in it. For instance, what happens if you offer paid gym memberships and you have some employees that don’t exercise or use a gym? It might be great for the few employees that do enjoy exercising, but others won’t use it. Ultimately, you end up losing money because the gym membership you pay for is for all your employees, and not all of them are using it.
LSAs, however, are much more flexible. Your employees have the option to choose what perks they want. All the employer has to do is supply the funds to the account, and the employees are free to choose where they would like to spend the money. Because the account is flexible, they are more motivated to use the perks. Perhaps an employee doesn’t enjoy a gym membership, but they do like fitness group classes; they will use the perk much more because it’s something they chose for themselves.
2.) Lifestyle spending accounts give employees incentive
In the past, it was common to offer employees a bonus at the end of the year. As a result, your team worked harder to earn that bonus. LSAs work the same way. As the employer, you can add as much or as little money as you wish. This account works as an ongoing incentive; the harder your employee works, the more funds you put in their account.
LSAs are great for both the employer and the employee because you can add to the account whenever is necessary. Here is an idea. Let your team know that you are able to add to the account whenever you’d like. Set some monthly goals for them, and if the goals are met, reward them with an increase in their LSA. It’s a win-win for everyone! The employees work hard to reach their goals and the employee is rewarded.
3.) Lifestyle spending accounts enhance their personal lives
The goal of LSAs is to ultimately enhance the work environment. If an employee is unhappy in their personal life, it’s hard for them to perform at their best when they are at work. Your enhanced work environment comes from the happiness of your employees in their personal lives. LSAs are a great way to achieve this. A lot of people follow a tight budget and leave little room for activities that are simply good for their heart and soul. Does your employee need a vacation? The LSAs can contribute to the expenses. Could your employees use financial counseling? LSAs can cover those expenses too. Would your employees enjoy a weekly activity like a fitness class? That’s right, LSAs pay for those as well!
As an employer, you don’t have total control over what your team chooses to do in their personal lives, but with LSAs, you can certainly do your part to ensure they have everything they need to be successful and content!
4.) Lifestyle spending accounts promote health and wellness
A lot of your employees are concerned about their health and well-being, but it’s something that very few people make time for. When you start to make your employees’ concerns your own concerns, you will notice a happier, stress-free, productive, work environment and as a result, very little turnover. When your employees take care of themselves mentally and physically, they will strive harder in their work environments. When you offer your team lifestyle spending accounts, they will have the option to put those funds towards activities that promote their well-being where they otherwise wouldn’t on their own.
Incorporate lifestyle spending accounts with Work2Live
At Work2Live, we’re all about helping you enhance your work environment. Whether you don’t have any benefits in place, or you want to add to the current benefits that you offer, lifestyle spending accounts are a perk that everyone will enjoy. The lifestyle spending account was created to nurture the body and soul and motivate employees in a way that they associate with the positive attributes of your company. Did we mention that it’s extremely easy to manage? Not only will your employees love the new perk, but your HR team and executives will too!
Want to get on your way to becoming one of the top employers out there? Contact Work2Live to put your lifestyle spending accounts into action!