As an HR leader, the retention and recruitment of the best talent is always a top priority. Millennials will make up nearly 75% of the workforce within just a few years, so recruiting rising stars will be crucial to the future success of your business. However, competition for this talent is fierce in the current marketplace, particularly when it comes to targeting the most in-demand workers.
Because of the rising cost of healthcare and a growing cultural emphasis on healthy living, employees are paying more attention to their benefits than ever before. Meaning organizations that take steps to prioritize well-being will likely establish an advantage over their competition. To this point, 60% of workers say they would take a job with lower pay but better benefits.
Let’s take a closer look at the changing role of benefits in the recruitment and retention process and how new, innovative solutions can help you achieve your talent acquisition and retention goals.
Meeting the on-demand employee mindset
We’re living in the age of the empowered consumer and on-demand services like Netflix and Amazon Prime. Employees increasingly expect this level of convenience when it comes to their benefits, too. But many benefit plans are ill-suited for this modern lifestyle, and meeting the on-demand mindset requires crafting meaningful employee experiences driven by technology.
Employees want the freedom to access their benefits instantly from a smartphone, 24/7. They want advice and answers to coverage questions within minutes, not hours. Most of all, employees crave tools that support their physical, social, mental, and financial wellness.
Health Spending Accounts (HSAs) and Lifestyle Spending Accounts (LSAs) are two benefit solutions that can help satisfy the changing expectations of today’s multi-generational workforce. These types of spending accounts give your employees the customizable experience they want, plus the healthcare they deserve.
Reimagining the Role of Benefits
Since your benefits plan has the potential to be a key differentiator in recruiting and retaining the best talent, it’s important to fully explore the innovative options available.
HSAs offer a flexible approach to benefits in which employers can set aside a fixed amount of benefit dollars for each employee. These funds can then be used to reimburse employees for a range of eligible expenses. HSAs are 100% tax-deductible for employers and a non-taxable benefit for employees.
What can be covered under an HSA?
- Medical coverage for a range of services, including doctors, specialists, and wellness practitioners
- Dental care
- Prescription drugs
- Vision and eye care
- Lab fees
- Health devices like hearing aids and wheelchairs
Meanwhile, LSAs sweeten the deal further for employers and employees alike. With LSAs, employees can access products and services that will help them pursue a healthier lifestyle. They’re a taxable benefit for employees, and like HSAs, are a great way to control costs while also offering highly desirable (and millennial-friendly) benefits like personal development classes, athletic gear, and health coaching. Eligible expenses under an LSA are far-reaching and include:
- Food delivery, vitamins, and supplements
- Ski passes
- Weight loss programs
- Language training
- Hair replacement
- Teeth whitening
With these types of creative options, LSAs are one of the best ways to provide stellar care, while inspiring greater loyalty, productivity, and engagement across your workforce.
Three keys to using benefits to improve recruitment and retention
If you want to attract and retain the best talent, you have to offer a compelling reason for candidates to choose working for you over your competition. Your business’ ROI also depends on the extent to which employees enjoy coming to work every day and their overall health.
Here are three ways to utilize LSAs and HSAs to strengthen your recruitment and retention process, boosting your bottomline as a result:
1. Make benefits central to your recruitment process
Offering value-added benefits sends a strong “we care” message to potential hires. Highlighting fresh, new perks available through LSAs is a smart way to recruit rising stars and boost your brand.
Employees will be motivated by knowing they can access and use benefits from day one. Eliminating unnecessary, boring paperwork is also attractive to candidates – meaning a seamless benefits experience will strengthen your recruitment pitch.
2. Provide rewards and recognition
Did you know that a company with at least 150 employees loses approximately $1.57 million dollars annually to employee turnover? This staggering cost of attrition can eat away at your bottomline and it also damages morale. This is a problem since “lack of appreciation” is the number one reason why people quit their jobs.
It’s clear that making sure employees feel valued is essential. Spending accounts simplify the process of providing recognition and rewards throughout the employee lifecycle. Ongoing acknowledgement is a key to motivation, productivity, and long-term retention.
3. Give employees a choice in how they spend their benefits dollars
Health benefit plans often come with many restrictions. That’s why up to 70% of benefits may go unused as a result, which is a frustrating amount of waste for any employer.
Spending accounts like HSAs and LSAs, on the other hand, offer unparalleled freedom and flexibility. Employees can allocate dollars towards wellness services that fit their lifestyle. This personalization is important because each generation manages their health, life, and finances differently.
As an HR leader, you also get a streamlined solution that helps you budget more efficiently. You only pay for services your team uses and you can employ real-time data to adjust as needed.
Learn more about spending accounts
HSAs and LSAs delivered on a digital platform are an effective way to create a recruitment and retention strategy tailored for the modern workforce. If you want to learn more about how spending accounts can help your business thrive, try reading our Ultimate Guide to Health & Lifestyle Spending Accounts.