"Employees today want to work for organizations that value their wellbeing, so it makes sense that companies are searching for new ways to prioritize employee wellness, especially as remote and hybrid work blurs the line between work and home. Our study findings show clear signals that companies are seeking to provide benefits that are highly personalized and flexible," says Jaclyn Chen, CEO, Benepass.

New arrangements: Work from home and lifestyle benefits

Two developments are directly linked to changes that have come about as a result of the COVID pandemic: lifestyle spending accounts (LSAs) and work-from-home (WFH) perks.

LSAs are a relatively new concept in benefits, but increasingly popular with employees. "LSAs are fully funded by the employer and were developed on the basis that flexible, employee-led benefits lead to happier, more productive employees," according to a Benepass analysis of the report. "The report found LSAs to be the second-most-popular perk among all companies, with 37% of companies offering it."

The study also found that companies are exploring and developing the concept, with some uncertainty around the design of what should be eligible. Traditional offerings around fitness, nutrition, and mental health are popular. But LSAs are also being expanded to cover categories such as spas, pet care, travel and vacation, tuition reimbursement, parental support and others.

As working from home and hybrid work has become common, companies are also providing benefits in that area. The study notes that many companies provide $500-$1,000 in WFH benefits, often used to buy items like office desks or chairs. "The popularity of the WFH benefits suggests companies are continuing to support remote work and want to make it as seamless for employees as possible," the report says.

The study also finds companies getting creative with their WFH benefits: some companies include home services such as cleaning services, trash pickup, or water treatment. Some provide entertainment or cultural experience benefits to help pay for podcasts, Spotify, or streaming services. This last category is popular with younger employers, the report notes.

FSAs and DCFSAs are the top two pre-tax accounts

The study found that among pre-tax offerings, FSAs and dependent care FSAs (DCFSAs) ranked first and second in popularity. Working parents were particularly stressed during the pandemic, the report notes, so the use of DCFSAs have increased. DCFSAs even scored above HSAs in popularity, the report adds.

"The popularity of DCFSAs suggests employers continue to explore how to support partners so they can be their best, most productive selves at work," the report says.

The report also mentions the ongoing interest in diversity, equity, and inclusion among employees. For benefits, this can translate to a range of offerings. The report notes that coverage for infertility and family planning services are considered a top priority for many companies, since many health insurance plans leave out same-sex couples or even single parents from coverage in these areas.

Read more: How benefits spending accounts can provide more flexibility for employees

The report quotes Michelle Kerr Stenzel, CHRO of Turnberry Solutions, in discussing this area. "One of our five core values is inclusion, so we look at our benefits from that lens of, 'Are our benefits really inclusive for all the ways that families come to be? Are our benefits really inclusive for all family structures or couple structures?' We took a hard look at our benefits a couple of years ago with that in mind," she says.

The report concludes by saying that shifting attitudes about work will continue to encourage employers to explore how benefits can better serve their employees. "Flexible benefits programs that bring more choice, personalization, and joy back into the employee experience are key to standing out as an employer of choice," the study says.