Only 10% believe they receive more than $2,000 annually
According to a study conducted by Alegus, over half of the 608 US employees surveyed reported using the majority or all of their annual lifestyle benefits. These benefits encompass a wide range of offerings, including elder care, daycare, pet care, and adoption assistance, among others.
Consumers have become increasingly mindful of their spending habits. A previous Alegus survey found that individuals are making conscious efforts to reduce expenses, particularly in crucial areas like groceries and transportation, due to inflation.
Recognizing this trend, employers have introduced benefits aimed at alleviating financial burdens associated with these expenses.
The survey also revealed a lack of awareness among employees regarding the availability and budget allocation of lifestyle benefits. 30% of respondents expressed uncertainty about the specific dollar amount offered by their employers for lifestyle benefits, while 10% believed they received more than $2,000 annually for such benefits.
“Lifestyle spending accounts offer tremendous flexibility to employers to design programs that address the needs of their specific employee populations and segments,” said Jennifer Irwin, senior vice president of Marketing and Strategy at Alegeus, as quoted in BenefitsPRO.com.
“This research does a great job of illustrating the diversity of wants and needs across different segments of employees – as a result, one-size-fits-all benefit programs often fall flat.”
The survey also found that demand for benefits related to family care remains high. However, preferences vary across different generations.
Baby boomers and Generation Xers both emphasized work-from-home options and food support as top priorities, while Millennials favored family care and wellness perks. In contrast, the Silent Generation placed a higher importance on food and leisure activities, and Gen Z respondents ranked food and family care as their primary concerns.
Only 29% of respondents stated that their employer's perks fully aligned with their personal lifestyles.
The study also highlighted generational discrepancies, with Millennials being the most satisfied, indicating that their perks matched their lifestyles. Conversely, baby boomers and Generation X employees expressed dissatisfaction, stating that their benefits did not align with their respective lifestyles.
“We know in this post-pandemic, inflationary, and hybrid work environment – that people are facing new challenges in terms of work, life and finances,” said Irwin.
“Lifestyle spending accounts are a great tool to help augment employee’s finances, provide targeted dollars toward their family and lifestyle needs, and deliver perks that their people might not otherwise be able to currently afford.”
