Joanne Sammer writing for SHRM states that as members of Generation Z, those born after 1995, graduate from college, employers will need to provide the support, freedom and flexibility these younger workers seek.
One example of how benefits programs are changing to accommodate the needs of younger workers is the Lifestyle Spending Account (LSA). Sammer explains that LSAs LSAs) allow employers to make taxable contributions on employees’ behalf. Employees can use these funds on products and services that the employer makes available, such as fitness classes, pet insurance or charitable giving.
You choose the yearly sum (let’s say, $1,500), and your employees choose what they want to put it towards (a gym membership and a new pair of running shoes, perhaps?). Then, you only pay for the amount they use. We repeat: You only pay for what they’ve used. This one small detail makes a huge difference at the end-of-year review. Not only does it help business owners eliminate those unpleasant year-end surprises, many end up owing less than anticipated.