Julia McCarrel inherited a benefits system that included more than 30 different vendors when she stepped into her role as the head of benefits for the Americas and global programs at Logitech. New hires, herself included, were inundated with a confusing array of nearly a dozen benefit cards.  

The solution her team settled on was relatively simple: consolidate, standardize, and give people money they can spend on the things that matter to them. 

McCarrel shared how she transformed Logitech’s benefits landscape alongside Kathleen Harris, a solutions consultant at Forma during a From Day One webinar. The conversation titled “From Budget to Breakthrough: How Logitech is Personalizing Benefits at Scale” unpacked why lifestyle spending accounts (LSAs) are gaining popularity across industries and offered a blueprint for other HR leaders looking to personalize benefits programs for their organizations in impactful ways. 

Building the Business Case for Personalization

Logitech initially launched its wellness LSA in 2021 to support over 5,000 employees across 43 countries during the pandemic. The company also sought to address inconsistencies in its offerings, such as gym subsidies that were only available in certain countries. 

“LSAs are an employer-funded spending account, so you’ll hear [them called] spending account, customizable account, personal benefit. [There are] all types of ways in which people describe LSAs,” said Harris. “There are a number of words that we use interchangeably, but in the end, they’re really spending accounts that are funded by the employer and used by the employee.” 

LSAs allow employers to define eligibility and policy, while employees choose how to spend their stipend via a store, a card, or claims. McCarrel says the main challenge she faced was that the program was designed to be manually managed through a Human Resources Information System (HRIS) system. 

“In six months, [our team] had received 761 tickets from employees,” she said. This administrative drag was the key to building a business case for change. McCarrel calls the move to a dedicated LSA platform a strategic investment in talent retention, productivity, and operational efficiency. 

The Power of Starting Narrow

Logitech started transforming its benefits program with a tight focus on physical health because that’s where the data pointed. The initial goal was equality, since employees in some countries had gym subsidies, while others had limited options, says McCarrel. “We were really trying to just provide equity across the company for that access to physical health and well-being,” she said.

That commitment paid off. Logitech reported a 12% increase in benefits utilization and a 7% increase in spend after moving the program to Forma, as employees used their stipend for athletic shoes, gym memberships, smart watches, and more.  

McCarrel advises companies looking to personalize benefits packages to avoid eliminating all existing programs at once. “I would definitely recommend starting narrow and then building out,” she said. “The last thing you want to do is build out too much, and then you have to start taking things away.”

Logitech’s global wellness LSA started with a focus on physical health, which was a direct evolution of the gym subsidies its previous benefits package offered. This clear focus made the program manageable and aligned it with specific business objectives regarding preventative care and employee health, says McCarrel.  

Measurable Impact on Culture and Operations

The quantitative results were crystal clear: its well-being LSA saw 88% utilization, tuition reimbursement utilization rose 150% after moving to the Forma platform, and the adoption/surrogacy program went from zero claims to its first active users.

Qualitatively speaking, Logitech’s move to personalize its benefits program was a resounding success that helped boost employee engagement and satisfaction. Its positive impact was also clear in direct employee feedback. McCarrel quotes one employee who stated, “The wellness reimbursement is super simple to use,” and that it provided them “the freedom to find the health resources that work best for me.” This feedback is a core part of the return on investment for McCarrel.  “If you look at that utilization at 88%, you can’t take that away,” she said. 

Editor’s note: From Day One thanks our partner, Forma, for sponsoring this webinar. 

Ade Akin covers workplace wellness, HR trends, and digital health solutions.

(Photo by RealPeopleGroup/iStock)