With the Great Resignation in action, employers across the country are looking for more robust employee benefits programs like emergency savings accounts to retain talent — and to help employees better prepare for unexpected expenses, according to The Wall Street Journal. Featured in industry publications like 401K Specialist, SecureSave is among one of the new solutions leading the momentum behind emergency savings accounts, particularly because of its ease of enrollment and payroll withdrawal automation.
That automation is key to a successful emergency savings account, in SecureSave co-founder Suze Orman’s opinion.
“For the 40 years I've been doing this, the number one thing that I've told everybody is you need an emergency fund,” Orman said, quoted in Employee Benefit News. “But, what we have found over all these years is that people just don't do it, and why don't they do it? Because it's not automated.”
With such an easy solution available in the face of a growing crisis, it’s no surprise that SecureSave and other employer-sponsored emergency savings accounts are considered one of the top employee benefits a company can offer, and continue to be covered in major media outlets. After all, the goal of money is to make people feel safe and secure — feelings that employers must consider for the sake of employee well-being, and the bottom line.
Forbes cites SecureSave in list of growing corporate well-being solution providers
Americans are some of the most stressed workers in the entire world. With employee wellbeing top of mind for employers, the future of work must be different. But not just because of COVID-19.
Even before the pandemic, finances were the number one cause of stress for Americans. That’s likely to mean that work itself (meaning the pay or benefits that come with it) is a stressor as well. This time is a rare opportunity to radically change the way we think about work, which means it’s time for employers to consider benefits with real impact and purpose.
“Thirty-seven percent of Americans cannot cover a $400 dollar emergency. The solution for companies is to offer an emergency savings account which can be automatically deducted from a worker’s payroll and help them save for the unexpected. After all, money you don’t see is money you can’t spend.”
SecureSave helps employees build emergency savings, per 401K Specialist
40 percent of Americans earning over $100,000 per year now live paycheck-to-paycheck. If the top percentile of earners in the country have this problem, the future of the labor force is not looking good. In other words, this number is one of many indicators that Americans of all income levels face an emergency savings crisis. A truth brought to light at the national level by the COVID-19 pandemic.
Employer-sponsored benefits are already common in innovative American workplaces, like unlimited paid time off and flexible work schedules. While these benefits are used to attract and retain talent, companies that do not offer these benefits must change; those that do must continue to innovate.
That’s why the momentum behind emergency savings accounts for employees makes so much sense. Employers can attract and retain employees, and employees can have peace of mind. Not to mention more sleep, more productivity at work, and deeper relationships with colleagues.
“After researching the industry, we found an astounding need for a simple solution to the massive emergency savings problem. We have made it our mission to help people save for the unexpected and better navigate financial hardships.”
Employee Benefit News explores how SecureSave automates employee savings
In the words of personal finance advisor Suze Orman: “people first, then money, then things.” Words that human resource management should live by.
Prioritizing the needs of a company’s employees, and taking the burden of financial planning off the weight of employee shoulders, is a recipe for “people first” success. By offering an emergency savings account (in addition to a 401K), employers can set their employees up for a strong financial future — short-term and long-term.
A 2018 study by AARP indicated that this specific benefit is very popular among employees, with 71% of employees agreeing that they would participate in an emergency savings program if their employer offered one. An astonishing 87% of employees would participate in this benefit with an employer-match.
Plus, helping employees create financial security impacts the bottom line. Stress costs companies more than $5 million a year, according to Mercer. And the solution is so simple. The more employers give, the more employers will get.
“What's so fabulous about [an emergency savings benefit] is it never goes down, unless the employee withdraws it themself. So this one piece gives them more security.”
The Wall Street Journal names SecureSave as emerging employer benefit provider
Conventional wisdom from personal finance advisors is to save three to six months of expenses. A non-conventional solution is to save at least eight months of expenses, but ideally 12 months worth of expenses.
To help employees meet that larger goal, an employer-sponsored emergency savings account is not enough. Employers can and should institute a financial match in addition to offering a savings account. At the very least, employers should invest in incentivizing usage of emergency savings programs. According to a recent Willis Towers Watson survey, just 26% of employers offer an emergency account in their retirement plan and 19% said they are likely to add them; considering that 4 in 5 employees would participate in a program like this with an employer match, this white space opportunity in talent attraction and retention is enormous.
In one SecureSave case study, for example, a company offered employees $25 upon enrollment, and a $3 match each pay period after. The company saw a 63% adoption rate among invited employees. In just two weeks.
“Employers say workers who are stressed about money are often less productive. Among the 464 employers Willis Towers Watson surveyed, 34% said financial stress is creating workforce challenges such as absenteeism, up from 26% in 2017.”
How SecureSave is helping build emergency savings
There are many employee-sponsored emergency savings accounts, but SecureSave is the first driven by a purpose. We know that financially secure employees feel empowered in their personal lives and — no surprise — are more willing to bring their whole selves to work.
Just because an emergency savings crisis exists, doesn’t mean just any solution can solve for the issue. But, here are the facts. In the six months since SecureSave was launched, we’ve witnessed the following:
Our mission is to help people feel financially secure. This round of data shows that we are well on our way to helping people do exactly that.
We look forward to sharing more news and product updates. If your team is interested in getting the latest, feel free to send me a note at Devin@securesave.com or schedule a meeting with our team.