As employees’ financial woes grow, a new report has found that 90% want their organisations to provide an employer-matched emergency savings account (ESA).
SecureSave’s findings from its survey of 1,600 employees in the US underscored the growing need for employers to step up assistance to their financially struggling staff.
According to the report, 44% of employees consider an employer-matched ESA as the most compelling benefit an organisation can offer when they’re looking for a job. Another four in 10 said they prefer an employee-matched ESA over a 401k plan.
“Emergency funds are the top choice of nearly half of employees as a new benefit option,” said Devin Miller, CEO and co-founder of SecureSave, in a media release. “With benefits season upon us, we hope employers will listen to employees as they make investments for 2024. Employees want emergency funds above all else.”
Financial woes impacting workplaces
The demand for these benefits come as more employees admit to struggling financially, a challenge that has massive consequences on an organisation’s productivity and retention.
SecureSave’s survey revealed that one in three respondents had faced financial emergencies in the past six months, which negatively impacted their work performance and job satisfaction.
A majority of the respondents also said they don’t have enough savings to cover a month’s worth of expenses in case of an emergency (76%), while others said they wouldn’t be able to cover a $500-emergency expense (60%).
Even employees earning over $100,000 annually admitted to financial struggles, with 35% saying they are living pay check to pay check, and 64% saying this is affecting their work productivity.
Due to these financial problems, 44% of all the respondents said they have plans to find a new job within the next six months instead of taking the matter to their employer.
In fact, when faced with an unexpected $500 emergency expense, only four per cent said they would seek their employer’s assistance.
Employers such as Starbucks, Blackrock, and the ADP have emergency savings benefits that they offer to employees to assist them financially.
Other employers, on the other hand, help staff amid rising costs of living by extending remote work options, providing mental well-being support, offering pay rise, announcing one-off bonuses, and even giving them access to earned wages before pay day.
Source: HRD
