With tons of different options out there in terms of perks, rewards, and recognition, it can be challenging to filter the best options for your organization. With that in mind, there has been a push for more flexibility when it comes to the rewards employees receive, but equally as important is what an employer is working to address/build in terms of company culture and employee experience.
To that point, Lifestyle Spending Accounts, also known as LSAs have become a popular solution. So what is an LSA? Lifestyle Spending Accounts are essentially individual accounts for each employee which contain lifestyle dollars. These dollars are post-tax which means they are considered additional income to the employee (aka a bonus). This means that employee must pay income tax on this money just as they would a cash bonus. The nice part about LSAs is that the funds are discretionary which means that employers can distribute and award funds as they see fit. Also, as part of these accounts employers can set up different rules such as time limits (use it or lose it), quarterly installments, etc. Again, the flexibility around these accounts for employers makes them easy to work with and implement.
At the core of LSA popularity on the employee side is the ability to choose how and when they spend their funds. At Work2Live, our LSAs are specifically set up to address critical elements of work-life balance, so deciding what your organization is working to address in terms of employee experience is absolutely something that should be agreed on prior to installing any type of new program, and most certainly an LSA program. The reasoning behind this is that you'll want the program to be both meaningful and impactful, so taking the time to understand what your people want is key.
If you'd like to speak more about LSAs or would like to setup a demo with us, feel free to drop us a note at info@work2live.com
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