May 30, 2024

Evaluating the Suitability of a Lifestyle Spending Account for Your Clients

As a benefits broker, your role is pivotal in helping clients navigate through various benefits options to find what best suits their company’s and employees’ needs. Lifestyle Spending Accounts (LSA) are increasingly popular due to their flexibility and employee-focused benefits. To determine whether an LSA might be the right choice for your clients, consider asking these five essential questions and diving deeper for additional context and information:

Does your client already allocate funds for employee stipends?

Understanding whether there’s a pre-existing budget for employee stipends is crucial. This question helps determine if the client is financially prepared to adopt an LSA and highlights their commitment to employee wellbeing. Since LSAs are a relatively new concept, consider asking leading questions such as:

Do you offer any subsidies for gym memberships or fitness programs?

Is there support for mental health initiatives outside of your health plan, like meditation apps?

Do you provide stipends for home-office setups or cover internet/cell phone bills for remote workers?

Are there opportunities for professional development or learning through platforms like Udemy or LinkedIn Learning?

Is there assistance for employees to consult financial advisors or manage student loans?

Do you support family planning or offer aid for working parents?

Do you provide funds for meals or social gatherings to promote coworker connections?

Are there any unique benefits or perks, such as pet insurance, outside of your health plan?

Would your client consider replacing a less popular or manually administered benefit with an LSA?

Ask if your client has evaluated their current benefits usage and if they are open to swapping underutilized or manually managed benefits for a flexible benefit allowance that gives employees the freedom to choose. This could optimize their benefits spending and increase overall employee satisfaction. Also, find out if they currently administer any benefits through cumbersome processes like expense reporting or receipt tracking. If so, they might be ideal candidates for a more automated and modern solution.

What are your client’s objectives concerning employee satisfaction and retention?

Identifying your client’s goals regarding employee satisfaction and retention will clarify whether an LSA is a suitable tool to meet these objectives. If improving employee health and happiness is a priority, an LSA could significantly contribute to their benefits strategy.

How varied are the needs and interests of your client’s workforce?

With a diverse workforce comes diverse needs. Discuss the demographic diversity (age, race, gender, region, etc.) within the company to assess how the versatility of a flexible benefit platform might cater to various personal and professional development interests.

Is your client interested in a low-administration benefits solution?

Although implementing an LSA typically involves some administrative setup, if your client prefers a hands-off approach, recommend JOON. With JOON, there’s virtually no administration required on the client’s part, and implementation can be completed in just a couple of hours, not weeks or months. This makes JOON an appealing option for companies seeking efficiency along with enhanced employee benefits.

These questions are designed to help you and your client thoroughly evaluate the potential of integrating an LSA into their benefits scheme. The focus is on aligning with the company’s financial capabilities, goals for employee engagement, and the administrative ease provided by solutions like JOON. This approach ensures that the benefits strategy not only fits the budget but also aligns seamlessly with the company’s broader objectives.