A key challenge for leadership teams is balancing rising employee benefit costs with attracting and retaining top talent. Traditional benefit programs are often rigid, and when utilization is low, organizations may see a meaningful portion of their investment go unused. Studies suggest that 20% to 40% of benefits spend can remain untapped when participation is limited. (Yourco)
Lifestyle Spending Accounts (LSAs) provide an alternative. Unlike benefits tied to specific carriers or plans, LSAs are employer-funded accounts that reimburse employees for approved lifestyle expenses. This approach offers flexibility while allowing employers to control contribution levels and eligible categories.
LSAs help leadership teams maintain financial discipline while enhancing the employee experience within a single, adaptable framework.
What Value Do LSAs Provide for Financial Leaders?
LSAs enable organizations to broaden their benefits without relying on narrowly defined programs that may not meet all employee needs. Employers can allocate a defined contribution and let employees use funds within set parameters, rather than designing multiple specialized benefits.
This approach meets changing workforce expectations and maintains budget clarity.
Predictable Benefit Costs
LSAs usually follow a defined contribution model, with employers setting a fixed amount per employee for a set period, often annually. This structure allows for clear cost forecasting and controlled allocation of benefit funds.
Finance leaders gain visibility into total program costs, while HR teams retain flexibility in program design.
Employers or platform vendors manage reimbursement processing and balance tracking. BPA supports enrollment and employee education, ensuring employees understand the benefit and how to access it.
Recruitment and Retention Support
Offering an LSA demonstrates a commitment to personalization and employee well-being. According to ADP, LSAs can improve retention by increasing the perceived value of benefits. (ADP)
For leadership teams competing for talent, LSAs offer a flexible way to enhance existing benefits without broad salary increases or new standalone programs. (ADP)
Employee Engagement and Perceived Value
When benefits reflect individual needs, employee satisfaction can increase. LSAs let employees choose expenses that match their priorities, such as wellness, financial planning, or lifestyle support.
For executives, higher perceived benefit value supports workforce stability and organizational continuity.
A Cross-Functional Leadership Initiative
Successful LSA implementation requires cross-departmental alignment. Finance reviews cost structure and budget, HR designs eligible categories and manages rollout, Operations supports communication, and executive leadership ensures alignment with workforce strategy. Partnering with BPA helps reduce administrative strain by providing employee enrollment guidance and year-round support, decreasing internal questions and coordination demands. LSAs should be viewed as a strategic initiative, not just a single-department program.
How OSU Uses LSA Programs to Support Its Large Employee Base
Large universities such as Ohio State (OSU) show how LSAs can be implemented at scale.
Their program allows employees to submit eligible expenses year-round, reinforcing that LSAs are an ongoing benefit rather than a one-time enrollment option.
OSU offers a variety of eligible expense categories, including fitness services and financial planning. The program is managed through a third-party platform with online submission, reducing internal administrative demands and maintaining employee accessibility.
This model is common: vendors manage reimbursement workflows, while employers focus on communication and participation.
Launching an LSA Program: Supporting Adoption and Clarity
Introducing an LSA requires clear communication during open enrollment and ongoing clarity afterward.
BPA offers real-time guidance to help employees understand their benefits during enrollment and address questions throughout the year. For LSAs, this includes explaining eligibility and guiding employees through the usage process.
While employers or vendors handle reimbursement administration, BPA helps employees navigate the benefit, reducing routine inquiries to internal HR teams.
Administrative Support Without Added Complexity
Even well-designed benefits can create internal strain if employees lack clear guidance.
By providing licensed enrollers during open enrollment and year-round call center support, BPA increases accessibility for employees seeking clarification. This support allows HR and leadership teams to focus on strategic objectives while maintaining a positive employee experience.
Reporting on enrollment and engagement provides leadership with visibility into participation trends. We partner with you to enhance capacity, strengthen employee understanding, and support the adoption of modern benefits programs.
For leadership teams implementing Lifestyle Spending Accounts, this support helps ensure the program delivers practical value across finance, HR, and the broader organization.