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  • Offering competitive benefits is a crucial strategy for employers in a competitive job market, as it helps them meet the needs of a diverse workforce. Employers strive to pinpoint adaptable and attractive benefits to a diverse employee base while considering the related expenses.

    Employees often prioritize benefits such as health insurance, paid time off (PTO), retirement plans, and flexible work schedules. These are not perks, but essential elements that cater to their unique needs and significantly enhance their quality of life. Recognizing this, many forward-thinking employers are now incorporating lifestyle spending accounts (LSAs) into their voluntary benefits plans. This innovative benefit allows employees to personalize their perks, further enriching their work-life balance and overall job satisfaction.

    What Is An LSA? 

    A lifestyle spending account (LSA) is a new benefit that has caught the attention of many employers. LSAs are employer-sponsored accounts that enable employers to reimburse employees for merchandise and activities that promote physical, financial, and emotional well-being. Unlike health savings accounts (HSAs), LSAs are not tied to tax advantages and are free from similar constraints, offering a more flexible approach to employee well-being. 

    Why Should My Business Utilize This Account? 

    LSAs offer employers the flexibility to select the benefits they wish to provide, ranging from gym memberships and nutritional services to sports and dance classes. They can also cover home office necessities, technology needs, eco-friendly activities, and family support or pet care expenses. Employers allocate an annual contribution of $850 per employee to these accounts, but the funds are only disbursed when the employee uses them.

    LSAs Unique Appeal

    The rising popularity of LSAs can be attributed to the flexibility they offer employees in choosing benefits that align with their personal values. Employers, too, are finding these accounts to be a compelling tool for retaining high-quality talent and fostering employee satisfaction. The unique appeal of LSAs lies in their ability to empower employees with the choice of benefits that hold the most value for them compared to their peers. This customization makes LSAs a desirable plan. Employers have found that while the voluntary benefits they currently offer are valuable to those who use them, their overall utilization is low, leading to questions about where best to allocate resources.

    Allocation Of Resources 

    A growing number of employers are reevaluating their benefits portfolio, trimming back on offerings that they see limited use to accommodate the introduction of LSAs. This shift allows employers to focus on benefits that genuinely resonate with their employees. For instance, if a benefit such as adoption assistance is only utilized by two percent of your workforce, it might be time to reconsider your investment. LSAs, with their broad appeal, are likely to cater to a wider demographic within your employee base.

    LSAs see an impressive uptake, with about 80 percent or more employees using them. Employees enjoy the personalization and adaptability offered by these plans. Given the diverse lifestyles, family situations, and preferences of your workforce, LSAs present a unique opportunity for everyone to benefit. Redirecting your benefits expenditure could be the strategic shift your company needs to keep its top performers on board.

    Partner For Sucess

    At GMS, our comprehensive benefits package provides employers and their employees with a wide selection of benefits options. Our team of benefits specialists is dedicated to delivering the most appealing benefits packages, encompassing everything from employee assistance programs (EAPs) to health and wellness programs. Your employees are your biggest asset – provide them with resources and coverage that make them their happiest. 

    By leveraging the assistance of a professional employer organization (PEO) and integrating in-demand benefits, small business owners can draw in and retain exceptional talent, cultivate a positive work environment, and propel their organizations toward growth and success. Contact us today to discover how we can assist you in managing employee benefits for your expanding business.

  • Your employees spend the vast majority of their waking hours in the workplace. Whether they’re conducting work in the office or in a remote office, employees are managing workloads, engaging with customers and other employees, and are tasked with the daily pressures of performing their job duties. This ultimately leads to poor mental health at work.

    To improve the well-being of your workforce, have you considered enhancing your employees’ benefits package? You’re most likely familiar with benefits such as health insurance, retirement plan options, vision and dental insurance, pet insurance, and more; however, perhaps an employee assistance program (EAP) could be the perfect fit for your business.

    Continue reading to better understand what an EAP is and its benefits for your business.

    What Is An EAP?

    An EAP is a voluntary, work-based program offering free and confidential assessments, short-term counseling, referrals, and follow-up services to employees with personal and work-related problems. They typically offer employees free counseling benefits, which are usually alongside a company’s health insurance plan, so they have a stable and reliable outlet for managing workplace stress and anxiety.

    How Does An EAP Work?

    An EAP aims to connect employees with counselors and other support resources when they’re struggling, whether in their personal life or with work. Typically, the resources provided through an EAP are free, with a 24/7 line your employees can call. Calls are completely confidential and administered through a third-party provider. This allows your employees to feel comfortable expressing their problems to someone whom they can trust and rely on for support.

    The following are common areas that an EAP can help your employees with: 

    • Nutrition 
    • Anxiety
    • Depression
    • Grief during the loss of a loved one
    • Legal issues
    • Relationship issues
    • Basic medical advice
    • Finances
    • Substance abuse

    An EAP is designed to assist your employees in the interim; it’s not a long-term solution. When your employees talk to an EAP professional, they help them identify the root of the problem and then provide an action plan. If additional measures should be taken, that will be determined as well.

    Benefits Of Having An EAP Within Your Business

    Life’s challenges can negatively impact your employees’ productivity and performance when they cannot cope with them. When you provide them with an EAP, they gain access to resources to help them cope with their situations and speak to someone during challenging times. Ultimately, it can even benefit you, the employer, as it can reduce the negative impact on your company’s bottom line and overall morale. Alongside that, the following are the benefits of offering an EAP at your business:

    • Improved productivity 
    • Stress management
    • Decreased absenteeism 
    • Reduced accidents and fewer workers’ compensation claims 
    • Greater employee retention
    • Affordable resources
    • Employee-focused culture 

    How Do I Create A Successful EAP?

    The most critical step in creating a successful EAP is asking your employees what services would be beneficial to them. Consider following the below steps when creating your own EAP within your business:

    1. Gather employee feedback – Ask your employees where they’re struggling and what They believe may remedy the situation.
    2. Explore provider offerings – There are many EAP providers, each having its own plans and services. Be sure you do your research and weigh out all the options to determine which one would be the right fit for you and your employees.
    3. Compare the numbers – Every plan has its own limitations on the number of covered employees, the number of services offered, and how often your employees can access the service.
    4. Integrate it within your existing benefits plan – Once you find the right plan, it’s time to work with your EAP provider to integrate the services into your existing benefits package.

    Partner With GMS

    When you partner with a professional employer organization (PEO) like Group Management Services (GMS), you gain a partner that will help you implement this within your business every step of the way. In addition, GMS has contracted with Espyr to provide employees and their family members with a comprehensive EAP. Our EAP provides your employees with the following services:

    • Legal and financial consultation 
    • Child care information 
    • Elder care services 
    • Adoption specialists 
    • Academic resources
    • Pet care services
    • Special needs services 

    Contact us today to learn more. 

  • When employees are set up for success, companies enjoy the benefits. Happy, motivated employees are likely to be more productive and satisfied with their jobs, reducing turnover. While there are many options you, as an employer, can provide to create a great place to work, there are factors outside of the workplace that have a direct impact on the overall well-being of your employees.

    An employee assistance program (EAP) is one tool employers can use to help stressed-out employees and improve morale and work performance. Let’s break down what an EAP does, how it benefits both employers and employees, and how your company can get the most out of its program.

    What Is An Employee Assistance Program?

    The Society for Human Resource Management (SHRM) defines an EAP as “a work-based intervention program designed to assist employees in resolving personal problems that may be adversely affecting the employee’s performance.” These intervention programs are designed to give employees support for private matters until they can find a more permanent solution.

    Employee assistance programs are a great way for businesses to improve their overall employee productivity and health. The programs provide employees with access to confidential counseling and support, as well as referral services for mental health care, substance abuse treatment, and other services. An ideal EAP should meet the criteria listed below:

    • Confidential – Given the personal nature of employee issues, EAPs should allow employees to seek support privately and anonymously.
    • Accessible – Services provided by an EAP should be accessible online and easy for employees to contact during and outside of work hours.
    • Available – Services should be readily available to all employees and immediate family members who are eligible for the program.
    • Short-term – EAPs aren’t meant to be permanent sources of aid. The services an EAP provides are designed to give employees access to key services and short-term help until they can find a good, long-term solution.

    The exact form of support can differ greatly from program to program; however the goal is the same – to give employees the support they need to address factors that impact their mental and emotional health.

    Examples Of Employee Assistance Programs

    The average EAP provides a wide range of services aimed at providing critical support for your workforce, but the exact offering can vary from program to program. It’s most common for EAPs to address a number of personal issues, including the following concerns:

    • Relationship challenges
    • Grief over the loss of a loved one
    • Financial or legal problems
    • Stress management
    • Mental health issues, including anxiety, depression, and PTSD
    • Substance abuse
    • Workplace or domestic violence
    • Crisis management

    EAPs offer confidential, professional counseling and support to employees, free of charge. Some can even be accessed via phone, text, or email 24 hours a day, 365 days a year.

    While EAPs were traditionally developed to support personal issues, modern programs have expanded to include further services. Employers have found that several additional stressors impact work-life balance and an employee’s future plans. As the workplace evolves, modern EAPs have also included the following forms of support:

    • Childcare
    • Eldercare
    • Adoption specialists 
    • Retirement planning
    • Living wills
    • Pet care
    • Academic and tutor resources
    • Personal and professional development

    Benefits Of Employee Assistance Programs

    More stress means more problems for both employees and employers. According to Gallup’s 2022 State of the Global Workforce Report, a whopping 57% of U.S. employees reported feeling stress on a daily basis. By alleviating that stress, EAPs can help businesses enjoy the following benefits:

    • Reduced absenteeism 
    • Increased productivity 
    • Better morale
    • Improved retention
    • Stronger applicant pools

    Reduced absenteeism

    Outside stressors can often lead to employees taking additional sick days or simply calling off to attend to personal issues. EAPs give employees the means to alleviate those stresses. A study by Federal Occupational Health (FOH) found that companies that offer EAPs saw a 69.2% decrease in absenteeism by giving employees access to various means of personal support.

    Increased productivity

    Just because employees are physically at work doesn’t mean that they’re productive. Behavioral health concerns such as stress, anxiety, or depression directly impact how engaged employees are at work. That same FOH study found that employees with access to assistance programs were 22.8% less checked out while on the job and more invested in their work.

    When an employee has an issue that’s causing them to miss work or perform poorly, it can trickle down to affect the entire department’s productivity. Having a program in place that helps individuals deal with these issues before they become a problem is a great way to be proactive.

    Better morale

    Another benefit the FOH found was that EAPs could improve employees’ sense of overall well-being. Studies found that EAPs increased users’ life satisfaction by 24.2% by addressing stressors that caused personal distress. In turn, employee morale is substantially better when employees take advantage of EAP services.

    Improved retention

    Simply put, stress makes good employees leave. EAPs show employees that your business cares about their well-being, making them less likely to suffer burnout or look for a fresh start somewhere else. In addition, EAPs can help prevent employees from being fired by helping them manage personal issues before they negatively impact their work performance.

    Stronger applicant pools

    Assistance programs can also encourage solid talent to join your business. According to SHRM, 76% of employees “Consider mental health benefits to be a critical factor when evaluating new jobs.” An EAP is a clear sign that your business takes employee mental health seriously.

    How To Get An Employee Assistance Program Started

    Getting started can be overwhelming. Here are some tips on how to launch an EAP plan:

    1. Decide what kind of EAP you want. Do you want one that caters specifically to your company’s needs, or do you want a one-size-fits-all program?
    2. Decide on a budget. Your budget will be an important consideration when choosing an EAP. You can calculate how much it will cost per employee by year or month to get a baseline—it might be less than you expect!
    3. Research different EAP providers—they should all have websites where you can read about their services and compare pricing and the benefits offered. Analyze the information from each provider and choose one that best fits the overall needs of your company.

    Another option is to contact your company’s insurance provider and see if they offer an EAP service. For a truly turn-key experience, you can hire a third-party agency to broker an EAP program for your business. It’s important to keep in mind that the size of your business may ultimately determine how many options are available to you.

    Once you have done the heavy lifting of choosing a program and getting an EAP in place for your business, it’s critical to focus on employee communication. It’s important that everyone in your organization, from HR to management, understands their role in the program and how to assist if an employee needs assistance from the program. In addition, it’s crucial that the EAP rollout is well communicated throughout your organization so that each employee understands the value of the program, what is being offered to them, and how to take advantage of this benefit.

    How To Maximize The Value Of Your Employee Assistance Program

    Offering an EAP is one step. Getting employees to use it is another. National studies find that EAP utilization averages just under 10%, but not because the programs are ineffective. SHRM reports a couple of key reasons for the low usage rate:

    • Privacy concerns – Employees either feel uncomfortable sharing personal issues or are afraid that employers will gain access to their personal health information.
    • Lack of promotion – Companies either don’t promote these programs efficiently, or employees aren’t aware of how to access services.

    Even with low participation numbers, employers who offered an EAP typically enjoyed a return on investment of at least $3 for every $1 spent, according to the 2020 Workplace Outcome Suite. Still, there are ways that businesses can encourage better EAP participation and receive even more value from their programs.

    Regularly promote EAP awareness 

    It’s not uncommon for employees to only hear about their EAP once during the onboarding process or when the program launches. It’s best to give employees regular reminders about their EAP and how to access these services. These reminders can come in multiple forms – during annual meetings, email updates, etc. Regardless of how you send the message, multiple reminders will only increase the odds that employees will utilize these services.

    Stress your commitment to privacy 

    It’s not always easy for individuals to admit they need help. That said, it’s essential to communicate that employees can privately access services online or on the phone around the clock.

    In addition, employees should understand that their interactions with these services are completely private and are not shared with the employer or others within the company. By stressing the private nature of an EAP, employees are more likely to explore these services on their own terms.

    Work with HR advocates

    It’s not always easy to manage the various aspects of benefits administration by yourself. Fortunately, you don’t have to promote and manage your EAP alone. The right EAP provider can help you maximize the effectiveness of your program.

    GMS partners with businesses to offer critical assistance and educate employees about how to best utilize these services. We help employers deliver a quality benefits package without having to spend the time to administer these benefits by themselves, including group health insurance, assistance programs, and more.

    Ready to enhance your employee benefits package? Contact us now about how GMS can help you save time and money through expert benefits administration.