Contact Sales
In recent years, both employers and employees have recognized the value of supporting workers’ financial wellness through benefits like workplace emergency savings programs. In 2024, these programs, often called emergency savings account (ESA) programs, have surged in popularity, emerging as a fast-growing employee benefit. Various large corporations like Starbucks, Delta, and Humana have begun to offer ESAs as part of their benefits packages, positioning their companies on the cusp of innovation — and others are following suit.
There are many reasons why ESAs are gaining so much traction, and organizations would do well in considering adding them to their benefits packages.
With ongoing economic instability and an evolving job market in the U.S., financial security has entered the forefront of employer considerations. A PwC study found that among full-time employees, 33% have had money worries negatively impact their productivity, and financially stressed employees are five times more likely to be distracted by financial issues at work.
Workplace ESA programs directly address these concerns by helping employees build a healthy reserve of emergency savings they can fall back on in times of crisis. A well-funded savings account brings peace of mind that individuals can handle any financial emergencies that may arise in the future, helping alleviate financial stress and foster their financial wellness.
ESAs not only support an individual’s immediate financial health, offering them peace of mind and alleviating stress in the face of unexpected emergencies, but they also enhance individuals’ long-term economic stability, making emergency savings a critical workplace benefit.
Employers are increasingly adopting a holistic approach to employee benefits. While traditional packages typically included healthcare and retirement plans, there’s a shift towards offering more comprehensive solutions that support overall employee well-being, found a TransUnion survey. According to the survey, the top four facets of holistic employee wellness include:
Workplace emergency savings programs are a key part of this emphasis on overall employee wellness. They work in concert with other financial wellness initiatives like debt management assistance, digital financial tools, and financial education, creating a robust network of support for employees.
There's a growing call from employees for benefits that bolster financial security. With Millennials and Gen Z struggling against unprecedented financial stressors like student loans and rising housing costs, more employees are aligning themselves with organizations that demonstrate a commitment to their financial health.
Workplace ESA programs help meet this demand, empowering employees to better prepare for unforeseen expenses without the added stress of financial insecurity. In Goldman Sachs’ Retirement Survey & Insights Report 2023, 36% of employees listed emergency savings as the number one request to add to their retirement plan, demonstrating a strong demand for more help from employers with immediate financial issues.
Plus, with 90% of employees eager to participate in an ESA program if it were offered by their employer, according to SecureSave, the risk for employers is quite low.
The key to attracting and retaining competitive talent lies in not only meeting — but exceeding employee expectations. Financial wellness programs, especially those with an emergency savings component, are increasingly decisive factors for job candidates. Which makes it no surprise that changemaker companies looking to stand out in the market are beginning to add ESAs to their benefit offerings.
These benefits show potential employees that their future employer values their overall well-being and financial health, which significantly aids in the recruitment and retention of high-performing staff. With 44% of surveyed employees saying a workplace ESA would have the largest positive impact on their finances, the recruiting power of such a program is clear.
When employers do offer workplace ESA programs, they can reduce employee turnover by as much as 86%, found SecureSave (based on a decrease in turnover from 33% to 13%). Supporting employee financial health in this way has a clear ROI for organizations.
The integration of financial technology (fintech) has streamlined the implementation and management of workplace ESA programs. Fintech innovations in emergency savings include:
This convenience is a notable advantage for employees and employers alike, making these programs more attractive and accessible.
Workplace emergency savings programs are a growing new benefit in 2024, driven by a collective recognition of financial wellness importance, employee demands for greater financial security, and organizations’ drive to attract talented professionals.
As the focus on financial well-being continues to grow, these emergency savings initiatives stand out as an impactful benefit for both employees and employers alike. Expect to see more organizations adopt ESA programs as they strive to stand out in the market by better supporting their workforce and enhancing employee loyalty and productivity.