Employees are increasingly stressed about their finances

With ongoing economic uncertainty, employees are contending with ongoing financial stress, which can negatively impact their mental health and their performance at work. About one quarter of people aged 18 to 29, older Gen Z and younger millennials, have credit card debt that is 90 days overdue. In a study of HR leaders conducted by Lively at the end of last year, 62% saw their employees' financial stress level rise. As a result, 80% of HR leaders felt that offering competitive financial benefits was more important than it was a year ago when it came to attracting and retaining employees.

Related: The HSA: A retirement benefit in disguise?

Employees are well aware that financial benefits are something employers can choose to offer: In the same study by Lively, HR leaders reported that 36% of employees asked for increased financial benefits. Not all benefits are created equal, however. In a volatile environment, employees need benefits that enable them to be flexible and save over time.

HSAs offer an opportunity to save beyond the 401(k)

HSAs are uniquely positioned to both help combat rising health care costs now and in the future.  These accounts, which are paired with a qualifying high deductible health plan (HDHP) are "triple tax advantaged." Employees and employers can put money into these accounts pre-tax, spend money on qualified health expenses tax-free, and invest their HSA balance, for which any growth is tax-free. HSAs belong to the employee and the funds in them never expire – all unused funds roll over from year to year.

When it comes to using an HSA in retirement (65+), account holders can spend their HSA money tax free for health-related expenses and use it for anything else taxed at their normal rate. This can be especially useful when the average person is expected to spend over $150,000 on medical expenses in retirement, outside of what is covered by Medicare.

Because they offer so many advantages, HSAs are growing in popularity. According to industry research by Devenir, HSA accounts grew to over 32 million, up from just over 6 million in 2011.

HSAs are growing in popularity among younger employees

For these younger generations, HSAs are proving especially popular. A recent Schwab survey found that the investment opportunities offered by HSAs help them safeguard long term life goals like retirement. The survey cited that around half of Gen Z (52%) and millennial (48%) workers who are offered an HSA by their employer are using it to save for future health care costs in retirement, and more than half are investing their HSAs in mutual funds and other types of investments.

As these generations combined currently make up 40% of the workforce, and Gen Z are projected to make up 27% of the workforce by 2025, offering an HSA is an important part of a benefits package that will appeal to a growing percentage of your employee base.

Not all HSAs are created equal

When adding an HSA to your benefits offering, you want to ensure that it meets the needs of younger generations of workers. Look for a provider that invests in technology, including easy-to-access online dashboards and mobile apps. Due to the importance of investing their HSA for this demographic as well, ensure that it offers easy access to investing, including first dollar investment and a range of investment options, such as self-directed and guided portfolio investing.

As younger employees look to build long-term financial security, an HSA is a critical benefit offering. It is one that can speak volumes about how employers are committed to helping employees reach their life and financial goals.

Shobin Uralil is co-founder and COO of Lively.