The road to more personalized benefits: What brokers need to know

Because lifestyle spending accounts are post-tax accounts, the IRS does not mandate eligible expenses; rather, the employer decides what they’d like to cover for employees.

In the ever-evolving U.S. employment market, the need for workplace benefits that provide employees with flexibility has taken center stage like never before. Job seekers are no longer content with standard benefits packages, and existing employees are scrutinizing whether their current offerings match up to their needs. In other words, employees today want more personalized benefits that support both their professional growth and personal development.

In response, organizations are beginning to adapt their benefits structures to accommodate this growing desire for more personalized benefits. Yet there remains a problem. Most organizations remain wedded to providing group benefits – which lack the flexibility required for true personalization. This means organizations will need to devise new ways to bring individual benefit options to employees, and that has huge implications for benefits brokers.