Lifestyle Spending Accounts (LSAs): intentional benefits that drive productivity, culture, and belonging
For many companies, creating a culture of belonging is increasing in importance — workplaces have recently experienced declines in employee engagement and increases in burnout and stress, all of which impact individual and organizational health.
In 2023 and beyond, creating a culture of belonging by leveraging intentional benefits will be the key to success — companies that offer meaningful employee benefits are able to reshape the employee experience positively, leading to higher employee productivity and retention.
At Level, we believe that intentional benefits can be achieved by offering lifestyle spending accounts (LSAs) that give employees the flexibility to spend their benefits on what matters most to them.
What are LSAs?
Lifestyle spending accounts are employer-sponsored benefit programs that allow employees to use funds in a way that best meets their individual needs. LSAs allow employers to move away from one size fits all and to empower employees to spend on the benefit most meaningful to them.
LSAs can be wellness programs encompassing everything from fitness classes to mindfulness apps to gym memberships. They can also be used to cover things like convenience (think housecleaning), pet sitting, baby sitting, financial wellness, food, coffee, and more.
Employers who offer Level LSAs are able to provide their employees more flexibility and choice — their employees are able to spend their funds where they want on eligible items or services, without being limited to a marketplace. For example, some employees use their LSA funds to support their community businesses by joining a local gym or yoga studio that might not be offered in a pre-set marketplace. This allows employees to use their funds to cover expenses that are important to them, which contributes to a greater sense of overall well-being and belonging.
Why are LSAs critical in an employee engagement strategy?
LSAs are important tools for employee retention because they increase satisfaction by offering employees more control over their benefits and provide greater flexibility in how they use their funds. This leads to an increased perception of their company culture which in turn increases job satisfaction.
By offering LSAs as a key component of an employee benefits package, employers can tangibly demonstrate that they value their employees' well-being and understand the importance of providing benefits that meet their employees’ diverse needs. Offering such benefits leads to greater loyalty and retention, as well as increased motivation and productivity among employees who feel valued and supported — all of which are indicators of company culture.
Benefits that benefit everyone
People-first companies partner with Level to build benefits that align with their values. By doing so, we help companies optimize their benefits budgets to amplify their culture, delight their employees, and achieve their business goals.
Are you interested in using intentional benefits to engage and drive your culture, company strategy, and employee happiness and productivity? Would your employees find value in benefits like wellness, medical travel, mental health, education, gender affirmation, and family planning? Reach out to us here to learn about the impact of Level benefits and to schedule a demo.