In This Post:
Presenters:
Alexandra Vela
Account Executive
Today’s HR and benefits teams are stretched thin. With dozens of point solutions, multiple vendors, and increasing pressure to meet employee demands, many organizations are left trying to deliver meaningful benefits in an increasingly fragmented environment. The result? Programs are paused, perks are cut, and the intended value of benefits often gets lost in the process. The organizations are scaling back, not because there’s a lack of care, but because the administrative burden and rising costs make it unsustainable. That’s where Lifestyle Spending Accounts (LSAs) come in.
In our recent “Meet a Vendor” webinar, Alexandra Vela, Account Executive at Forma, led an engaging discussion on a topic that’s becoming increasingly urgent for organizations, brokers, and HR leaders alike: how to deliver impactful employee benefits without adding complexity or cost. The session focused on how LSAs can address some of the most pressing challenges in today’s benefits landscape by offering personalization, reducing administrative burden, and creating measurable business value.
During the webinar, it was emphasized that a fragmented approach is no longer sustainable. There are simply too many vendors, too many administrative headaches, and too little impact. The key to better outcomes lies in offering a solution that’s flexible, inclusive, cost-effective, and built for scale.
About Forma
What sets Forma apart from others in the space is the way they’ve reimagined the entire benefits experience. Unlike other platforms that rely heavily on third-party systems or limited vendor networks, Forma built their technology in-house. This means they can offer a smoother, more customizable experience that doesn’t just bolt on benefits, but brings them together in a single, flexible platform.
With over 300 customers, nearly 1 million members across 110 countries, and a network of 200+ strategic partnerships, Forma is a benefit provider that is helping organizations deliver value on a scale while keeping employees at the center. The results speak for themselves: a 98 CSAT score, 88% engagement, and 97% client retention.
What is an LSA?
Lifestyle Spending Account, or LSA is an employer-funded account that gives employees the flexibility to spend on the benefits that matter most to them. Unlike traditional benefit programs that lock employees into narrow categories or pre-selected vendors, LSAs put choice into the hands of employees while keeping control in the hands of the organization. LSAs are designed to be adaptable, covering categories like fitness and wellness, caregiving, professional development, student loan repayment, fertility support, environmental initiatives, and more.
What makes LSAs especially powerful is that employers control the structure and funding, while employees enjoy the freedom to use those funds in ways that truly support their well-being. From legal services, mental health support, home office setups, and even pet care, LSAs are built to be inclusive and responsive to the diverse needs of today’s workforce. Employees get access to a personalized platform with three convenient ways to pay, making the process feel intuitive, seamless, and aligned with how people actually live and work.
What’s also clear is that benefit priorities differ across generations, and LSAs are uniquely positioned to support that. Gen Z might lean toward mental health apps and virtual fitness subscriptions, while Millennials often use benefits for work-from-home setups or meal delivery services. Gen Xers may prioritize ergonomic office equipment, and Boomers might turn to estate planning tools or wellness memberships. Forma’s platform showcases how a single $240 budget can stretch to meet different generational needs, highlighting just how flexible and inclusive LSAs can be.
LSAs through Forma are not treated as payroll dollars, but as dedicated benefit budgets. Every dollar goes toward benefits that employees use, and that employers can track and optimize. With Forma handling the administration, organizations see real returns: reductions in admin time, improvements in engagement, and significant cost savings.
Real Results: Case Studies That Prove the Point
Three stories shared during the webinar brought these ideas to life.
At Guild, a personalized LSA program helped the organization meet its employees’ evolving needs, while driving efficiency and better returns on its investment (ROI). With Forma, Guild saw a reduction in administrative load and gained clearer insight into how benefits were being used.
Affirm rethought their benefits strategy after going fully remote, recognizing an opportunity to better support their 2,500+ global employees. When the finance team reviewed their old reimbursement tool, they saw that $8-per-claim fees were adding up quickly, so they switched to Forma’s flat, per-employee model. The change saved them over $500,000 and boosted employee satisfaction, earning a 98 CSAT score.
And at Garver, an engineering firm with 1,300 employees across 22 states, had a well-loved wellness program that was manually managed with spreadsheets and quarterly reimbursements. As they scaled, the process became unsustainable, so they launched a Lifestyle Spending Account through Forma that offered $300 per employee for wellness expenses like gym memberships, fitness equipment, and nutrition apps. The results included a complete elimination of admin work, 98% of employees meeting wellness goals, and early signs of improved health across the team.
Benchmark Data: LSAs in 2025 and Beyond
One of the highlights of the webinar was the reveal of early insights from Forma’s newly released 2025 LSA Benchmark Report, with data gathered directly from their platform. The snapshot reflects usage trends as of December 2024 and January 2025, offering a timely look at how organizations are designing and leveraging LSAs today.
Once considered a niche solution for fast-growing tech companies, LSAs have now firmly entered the mainstream. In fact, 59% of companies using Forma’s LSAs are outside the tech sector, spanning industries like finance, manufacturing, healthcare, and education.
What’s more, organizations of all sizes are adopting LSAs, from startups looking to differentiate in competitive hiring markets, to large, multinational employers aiming to standardize and scale benefits globally.
The report also outlined the top 10 most popular account types, which include categories like fitness and wellness, caregiving, home office setup, professional development, and more. Median funding levels vary, but the flexibility to build programs around different budgets remains key. For example, the median annual funding per employee was $930 for all-inclusive LSAs, while more specialized offerings, such as medical travel or family formation, reached up to $10,000 annually.
Another notable trend from the report is the growing shift toward consolidation. As organizations face continued pressure to reduce administrative overhead, more are choosing centralized solutions like Forma to streamline their benefits offerings. According to the research, 54% of companies have consolidated two spending accounts, while 25% are already operating with a single account. This means that organizations are actively moving toward a simplified, more unified benefits experience. For HR teams, it reduces time spent managing vendors and systems. For employees, it means one platform, one login, and a clearer path to the benefits that matter most.
Ready to Rethink Benefits? Get in touch with Forma Today!
Traditional benefits are often costly, complex, and fall short of what employees really need. It’s time for a more practical, strategic solution.
Lifestyle Spending Accounts (LSAs) give employees the freedom to choose benefits that matter most, while helping organizations cut costs, boost engagement, and reduce admin time. By consolidating multiple vendors into one streamlined platform, Forma makes it easier for HR teams to focus on people, not processes.
Whether you’re a growing business introducing flexible benefits or a global company looking to simplify operations, Forma’s all-in-one LSA solution offers a smarter path forward.
Ready to rethink your approach? Follow Forma on LinkedIn for updates.
For more information, contact:
Alexandra Vela – alexandra@joinforma.com
Forma Sales – sales@joinforma.com
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