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Inclusion is a priority for modern employers. But while many strategies focus on representation and opportunity, one critical factor is often overlooked: financial wellbeing.
In this Q&A, we explore what financial equity means, why traditional benefits fall short, and how emergency savings programs can help close the gap.
What do we mean by inclusion in the workplace?
Diversity, equity and inclusion (DEI) strategies aim to create workplaces where everyone is treated fairly and feels welcome. Yet while companies specifically target representation, culture and opportunity, financial inclusion (according to Harvard Business Review) is often omitted from strategic discussions.
However, financial stress is the most significant cause of workplace anxiety, and it’s widely acknowledged that financial wellness is critical to employees’ ability to perform at work. Without financial security, it’s harder to focus, engage and plan. Increasingly embraced by forward-thinking employers, true inclusion in the workplace takes account of employees’ financial realities.
What is financial equity – and how is it different from financial equality?
Financial equality means offering the same benefits to everyone. Financial equity is acknowledging that employees have different financial positions and need different types of support to achieve similar outcomes.
In other words, to offer an equitable benefits program, employers need to ensure that benefits are accessible and meaningful to all employees.
Why aren’t traditional benefits financially equitable?
From retirement plans to insurance and tax-advantaged financial accounts, many traditional financial benefits work on the assumption that employees have spare cash to contribute. But many don’t.
Employees on lower incomes are more likely to face financial shocks and less likely to have a safety net to absorb them. This includes those living paycheck to paycheck (67% of US workers, according to the PNC Financial Wellness in the Workplace report), caregivers balancing additional financial responsibilities, employees managing existing debt and those facing unexpected medical expenses.
Unsupported by traditional benefits, these groups are the most in need of financial resilience tools. Instead, they’re often forced to rely on payday loans, high-interest credit cards and hardship withdrawals from 401(k) plans to meet short-term financial needs. Meanwhile, traditional workplace benefits disproportionately favor higher-income employees. This imbalance reinforces workplace inequality.
How do emergency savings programs help level the playing field?
Emergency savings programs take a different approach. Low cost yet high impact, workplace emergency savings accounts (ESAs) empower employees to save small amounts automatically, often with low or no minimum contribution requirements. This makes saving more accessible and removes both friction and the psychological barriers that often stop people from getting started.
And by helping workers cover unexpected expenses without turning to credit or loans, ESAs boost short-term financial stability and provide a strong foundation for long-term financial wellbeing. Regardless of income level, this is something that benefits every employee. What’s more, even modest savings can make a meaningful difference.
What does inclusive design look like in practice?
To be effective, emergency savings programs need to be designed with inclusion in mind. Key features should include:
These features help ensure that ESAs work for everyone.
What’s the business case for employers?
As shown by our latest survey, financial stress is a major cause of distraction, absenteeism and disengagement at work: employees who are worried about money are less able to focus and more likely to miss a shift.
By supporting employees in building emergency savings, employers can help reduce this stress – leading to a more focused, resilient and engaged workforce.
There are also clear benefits when it comes to retention. Employees are more likely to stay with organizations that demonstrate a genuine commitment to their wellbeing, particularly when that support is practical and inclusive. Our survey found that only 1 in 5 employees with at least six months of emergency savings are actively seeking a new role, for example, compared to 76% of those with less than three months of savings.
How does this align with national priorities?
The U.S. Department of the Treasury has highlighted financial inclusion as a key priority in its National Strategy for Financial Inclusion. It encourages employers to play a more active role in improving financial wellbeing and to expand equitable access to savings and investments.
Tools that facilitate emergency savings are specifically highlighted in the strategy as critical to improving employees’ ability to save for retirement. By implementing inclusive emergency savings solutions, employers can contribute to a more equitable economic environment while simultaneously strengthening their own organizations.
What does closing the financial equity gap look like in practice?
Rising living costs are leaving many employees financially vulnerable, yet traditional financial wellness benefits still primarily support higher-income employees with disposable income. Lower-paid workers remain the least supported by existing programs, despite being most exposed to financial emergencies.
To build more inclusive workplaces and close the financial equity gap, employers need benefits programs that are simple, practical and accessible. ESAs play a crucial role by helping workers build financial stability.
For employers, this is an opportunity to offer benefits that support the whole workforce. And for employees, it means reduced stress and a stronger foundation for financial resilience. Ultimately, a holistic approach to financial wellness means creating systems everyone can access and benefit from. Emergency savings are a critical part of that.
SecureSave is the highest impact employer-sponsored ESA. Get in touch to learn more about how we help you close the equity gap and build an inclusive financial wellness strategy.
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