Wellness Spending Accounts (WSAs), sometimes called Lifestyle Spending Accounts, Personal Spending Accounts, and countless others, are a top employee attraction and retention tool for businesses of all sizes. WSAs are a taxable benefit to provide employees with additional funds for health and wellness-related expenses not covered by traditional health insurance plans or a Health Spending Account (HSA). WSA plans are completely customizable to the needs/value of the business and can be as specific or as creative as the employer would like.
Here are just a few of the top reasons why a business would offer a WSA to its employees:
1. Employee Well-Being and Engagement
Offering a WSA shows that the employer values the health and well-being of their employees. It contributes to a positive work environment and improves employee morale. Employees then feel supported in their wellness goals and are more likely to be productive, motivated, and satisfied in their roles.
2. Attraction and Retention of Talent
Offering a competitive, stand-out benefits plan is crucial to attracting and retaining top talent for businesses. A WSA is a valuable addition to the overall benefits package and contributes to employee loyalty and reducing turnover by providing additional incentives for employees to stay with the company.
3. Customizable Benefits
WSAs allow employees to personalize their benefits based on their individual needs and preferences. No traditional insurance plan is one-size-fits-all, and offering a flexible benefits option allows employees to choose the health and wellness services/products relevant to their needs.
4. Health Promotion and Prevention
With a WSA, employees are able to prioritize their own preventative care and proactive health measures. When a business is able to provide flexible, financial support for a range of health and wellness-related expenses, they are promoting a culture of wellness within the organization. This can then lead to improved employee health, reduced absenteeism, and lower healthcare costs in the long term.
5. Positive Employer Reputation
Businesses prioritizing employee wellness are seen as socially responsible and caring employers. This positive reputation can help attract customers whose values align with the company’s, as well as potential employees.
Businesses can design a WSA that is completely custom to their own values and needs and can include as many or as few eligible expense items as they like. WSAs are a great option for the budget-conscious employer, as employees are allotted a certain amount of funds determined by their employer and can never be reimbursed for more than what they have been given. Plus, the employer only pays for/reimburses employees for what they use and submit for. If they do not use all of their allotted funds, the employer does not pay for what is not used!
Download the document below to see a sample list of eligible WSA items