According to Fidelity, 94% of employers think that they are responsible for supporting their workers' financial well-being. A crucial part of maintaining financial well-being is having enough savings for emergency expenses. But the reality is that close to half of workers do not have sufficient short-term savings.
Despite the necessity of having money stashed away for unexpected expenses, Fidelity says that over half of US adults are still living paycheck to paycheck. Workers are forced to resort to maxing out their high-interest credit cards, accessing payday loans, and even tapping into their retirement savings.
Fidelity explains why an emergency savings benefit is a smart employer strategy. According to Fidelity, emergency savings programs provide more than just a safe place to put money aside.
They also offer peace of mind, stability, and the assurance that employees can focus on work without the constant burden of financial problems.
It also benefits the bottom line. Fidelity highlights the fact that financial stress leads to 5–10 hours of lost productivity every week, depending on income level.![]()
Firms are losing $183 billion yearly due to lost productivity because of the financial stress of employees.
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For human resources leaders, giving their support to these types of programs do not just increase the financial wellness of a company's workforce. It is also about giving an organization's workers the tools that build up their financial resilience, lessen their stress, and assist them to thrive in their personal life while enhancing their working conditions.