Many American workers are living paycheck to paycheck, unable to cover even a modest unexpected expense. This financial fragility is prompting more employers to add emergency savings accounts (ESAs) to their benefits lineup. In fact, 77% of companies now offer or plan to offer an ESA within the next year or two, according to a 2024 report from the Employee Benefit Research Institute, cited in a recent Employee Benefit News article.
The need is clear. Data from the Federal Reserve Bank of New York shows that more than one in three American households couldn’t come up with $2,000 to cover an unplanned cost. Without access to emergency funds, employees often turn to credit cards or high-interest payday loans, which can create deeper financial problems.
“Emergency savings accounts have really started to become a big foundational element of financial well-being,” said Devin Miller, CEO of SecureSave, a workplace emergency savings program provider, who was quoted in the EBN article. “The trick is you’ve got to get [employees] saving a little bit, and then they’ll actually have a solid chance of saving.”
When employers offer ESAs as a workplace benefit, about 60% of employees elect to enroll—an impressive adoption rate for any elective benefit, according to Mr. Miller. These accounts are typically payroll-linked, with contributions deducted after taxes. SecureSave’s accounts, which are FDIC-insured, don’t require minimum or maximum balances, making them accessible to workers at all income levels.
The target audience for these programs is low-to-moderate income earners—a group the Bipartisan Policy Center identifies as least likely to have emergency savings. Most employers that partner with SecureSave offer financial incentives for employees to sign up, ranging from $50 to more than $500 annually.
Beyond helping employees, ESAs appear to benefit employers as well. Surveys from SecureSave and Morgan Stanley show that employees with emergency savings accounts miss work due to financial stress about half as often as those without. In addition, 79% of employees say having a workplace-sponsored rainy day fund makes them feel more positive about their benefits overall.
According to those same surveys, employees without workplace emergency savings are one-and-a-half times more likely to be looking for a new job or planning to do so within six months. Meanwhile, 83% of HR leaders report concern that employees’ personal financial issues are affecting productivity—up 5% from the prior year.
Major employers including Amazon, Humana, Delta, and Starbucks have already adopted emergency savings programs. For plan sponsors considering this benefit, the math is straightforward: helping employees build even a small financial cushion can reduce absenteeism, boost engagement, and support longer-term retention.
“All sorts of crazy things can happen in life,” Mr. Miller noted. “On average, those little things are a couple of hundred dollars apiece, and they happen a few times a year. If you don’t even have that habit started, these little things are going to trip you up.”
For employers looking to support financial wellness in a meaningful way, emergency savings accounts offer a practical place to start.
