In This Post:
Presenters:
Megan Burns
Lead Benefits Solutions Consultant at Benepass
Last week, we welcomed Megan Burns, Lead Benefits Solutions Consultant at Benepass, to our Meet a Vendor webinar series. During the session, Megan covered the basics of Lifestyle Spending Accounts, reviewed benchmarking data and spending trends from Benepass’s proprietary data set, and explained how to set up LSA programs that clients and their employees will love.
Who is Benepass?
Benepass is a forward-thinking, customizable, and financially driven spending accounts platform that is centered around the value of personalized benefits.
They help companies reimagine how benefits are delivered to their employees and consolidate the different programs they offer into one platform and one card.
Today, Benepass is the vendor of choice for more than 200 employers like Workday, On Running, Anthropic and others representing over 200,000 employees in more than 110 countries globally.
What is a Lifestyle Spending Account (LSA)?
With a diverse workforce spanning five generations, employees now demand benefits that cater to their unique needs. Historically, companies implemented multiple point solutions, resulting in low engagement (1-20%) and low perceived value, as not every employee benefited from these programs. This approach also led to “point solution fatigue,” with benefits teams overwhelmed by managing numerous programs and vendors.
Clients have expressed that this method is unsustainable and are seeking more effective ways to offer benefits. LSAs provide a solution by allowing employers to create customizable, flexible programs that meet the varied needs of their employees.
A LSA is like a Flexible Spending Account (FSA), but instead of the IRS setting limits, the employer decides on funding and eligibility. Setting up an LSA is simple. Benepass collaborates with employers to design accounts based on their goals, challenges, and budget. Employers determine the benefit amount, distribution frequency, and rollover options. For employees, using LSA funds is easy—they can spend on what matters most within the program’s guidelines.
To learn more about LSAs you can visit this page.
The 2024 Benepass Benchmarking Report
The 2024 Benepass Benchmarking Report compiles data from a diverse range of employers, from small businesses with 12 employees to large corporations with over 20,000. This report spans various industries, including tech, financial services, healthcare, retail, professional services, manufacturing, and construction.
While Lifestyle Spending Accounts (LSAs) initially emerged in the tech sector, tech now represents only 43% of our clients. Benepass has experienced significant growth in healthcare, retail, financial services, and manufacturing.
Key Trends in Employer-Sponsored Accounts
- LSA Popularity: In 2024, 66% of companies offer LSAs, up from 51% in 2023.
- Emerging Perks: New perks like entertainment and mental health-only benefits have gained traction.
- Funding Frequency: Monthly contributions are most common, followed by annual and one-time contributions.
- Fund Rollover: Most accounts allow funds to accumulate but do not roll over into the new year.
Trends in Utilization and Engagement
- Highest Utilization: LSAs, as the most flexible benefit, receive the highest utilization.
- Top Engagement: Food and phone and internet accounts see the highest levels of engagement.
Who does Benepass serve?
Benepass partners with some of the world’s fastest-growing, leading, and most innovative companies, including Wix, On Running, TalkSpace, MindBody, and Sikich.
These highly progressive organizations prioritize their employees, understanding that attracting and retaining talent goes beyond competitive salaries. They aim to make a positive impact on the world, demonstrating their commitment through exceptional employee benefits.
Get in touch with the Benepass team today!
One-size-fits-all employee benefits don’t work for today’s diverse global workforce. Offer your employees flexible benefits that adapt to their lifestyles and empower their choices. Reach out to the Benepass team today!
Megan Burns – mburns@getbenepass.com
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