America's Benefit Specialist August-September 2022

UNIQUE BENEFIT ACCOUNTS CAN HELP ATTRACT AND RETAIN TALENT

By Phil Mason and Brian Hutchin UMB Bank

Attracting and retaining top talent is more challenging than ever. These days, prospec tive and existing employees expect more from employers. Since job seekers have the upper hand in today’s competitive labor mar ket, organizations need to have an employee- centric mindset and top-tier benefits. What does that mean for your clients? From an economic standpoint, it means their benefits offerings should be designed to delight. Satisfied employees are more

productive and more likely to stay put, so there’s less employee churn. Onboarding, resignations and training cost an average of half to two times an em ployee’s annual salary. Staff turnover costs employers a significant amount of money. From a recruiting perspective, offering a top-tier benefits package—one with an employee-centric philosophy and focus— makes your clients a top choice for the best and brightest candidates.

LIFESTYLE SPENDING ACCOUNTS Lifestyle spending accounts have been around for years but haven’t yet been as widely adopted as HSAs. However, with the shift in post-pandemic employ ee culture, more employers are offering lifestyle spending accounts in addition to traditional spending accounts as a way to recruit new talent and retain employees. In fact, a MetLife employee benefits trend study found that 69% of workers indicate that having a wider array of benefits would increase their loyalty to their employers. 1 Unlike HSAs, lifestyle spending accounts are entirely funded by the employer, the funds are considered taxable income and the accounts are completely customizable. The accounts can be used to cover the cost of a variety of expenses including gym memberships, fitness trackers, financial

WITH THE SHIFT IN POST-PANDEMIC EMPLOYEE CULTURE, MORE EMPLOYERS ARE OFFERING LIFESTYLE SPENDING ACCOUNTS IN ADDITION TO TRADITIONAL SPENDING ACCOUNTS.

40 ABS | benefitspecialistmagazine.com