Seeding also can be use on a temporary basis to improve participation by increasing employee comfort levels with the plan. For example, a multiple location service organization with an existing FSA had 5,100 eligible employees, but only about 100 were participating. That simple act encouraged employees to pay attention and actively seek information on FSAs . By the end of the two-year seeding program, participation had jumped to 1,300 employees, or 25 percent of their total population. Matching is another method employers are using to increase FSA participation.
Some companies even match contributions dollar for dollar up to a pre-determined maximum.
Marketing Out of the Box While seeding and matching have proven to be effective methods of increasing employee participation in FSAs, they're not the only alternatives. Targeted employee marketing programs to demonstrate how FSA's address specific needs also will boost participation. For example, most individuals with FSAs use them to cover copayments for doctor visits, prescriptions, and deductible or to cover eye care and orthodontic expenses. Therefore, an effective marketing program would include individual mini-campaigns designed to show employees how the FSA is beneficial for each of these expenses. It's also important when marketing FSAs to employees to keep it simple.