A majority of today’s employees don’t have $500 or $1,000 saved to cover an unexpected expense. A recent Employee Benefit News article by Evelina Nedlund reports that a recent survey by the nonprofit organization Commonwealth finds that employer-sponsored savings programs could be a viable solution.
The survey found that low- and middle-income employees who are more financially secure have been shown to be less stressed and more productive when they have an employer-sponsored savings program, which may lead to lower healthcare costs, better customer service and stronger attendance.
The national survey of 1,309 employees earning less than $60,000 a year found that employers offering workers savings interventions at the time of raise, can positively impact their employees’ personal finances. Three-quarters of hourly employees surveyed believe that if their employer offered savings options at the time of a raise, they would be less stressed and more confident about their finances.
IBMThe report analyzes the potential effects of savings programs including split direct-deposit paychecks, low-interest loans and savings accounts — and compares how those programs alleviate employees’ financial stress. Workers surveyed believe if their employer provided savings tools, they would be happier and more productive. Moreover, the survey found individuals with more in savings were less likely to have financial worries than those with little savings.