Workplace emergency funds gain steam as workers struggle to save

• Key Insight: Learn how employer-sponsored emergency savings programs are reframing workplace financial wellness strategies.
• What's at Stake: Rising financial fragility threatens retention, productivity and benefits ROI across sectors.
• Supporting Data: 77% of companies offer or plan ESAs; over one-third of households can't cover $2,000.
• Source: Bullets generated by AI with editorial review

Emergency savings are a cornerstone of financial well-being, but many Americans don't have enough money to cover unexpected expenses. 
As a result, a growing number of companies are adding emergency savings accounts to their financial wellness benefit packages to help workers fill the gap. In fact, 77% of companies currently offer or plan to offer an emergency savings account within the next year or two, according to a 2024 report by the Employee Benefit Research Institute.    

"Emergency savings accounts have really started to become a big foundational element of financial well-being," says Devin Miller, CEO of SecureSave, a workplace emergency savings program. "The trick is you've got to get [employees] saving a little bit, and then they'll actually have a solid chance of [saving]." 

Recent data from the Federal Reserve Bank of New York found more than one in three American households couldn't come up with $2,000 to cover an unexpected expense. Employees without emergency savings often rely on credit cards or high-interest payday loans to cover these costs, leading to even bigger financial problems, Miller says. 

Yet studies show that ESAs not only help employees save but also benefit companies by increasing retention, reducing absenteeism and improving productivity. 

When offered as a workplace benefit, around 60% of employees elect to enroll in an emergency savings account, Miller says. "It's really hard to get employees to adopt an elective benefit at any rate. Sixty percent is very sticky." 

How it works

Workplace emergency savings accounts are typically payroll linked and deposited after taxes have been deducted. The programs offered by SecureSave, which are insured by the Federal Deposit Insurance , don't have a minimum or maximum balance requirement.

The target audience for these accounts is low-to-moderate income earners — a group that according to the Bipartisan Policy Center is least likely to have emergency savings. Most of the companies that SecureSave works with offer an additional financial incentive for employees to sign up, ranging from $50 a year to over $500. 

Read more: Workplace emergency savings programs show clear ROI for employers

"Not everybody wants to talk to a [financial] coach, and half of America doesn't use or have access to a retirement plan," Miller says. "It's hard to find something that is universally popular and engaging." 

Miller pointed to recent surveys from SecureSave and Morgan Stanley that highlight some of the benefits of emergency savings accounts, which have been adopted by major employers such as Amazon, Humana, Delta and Starbucks. 

For example, employees who have an account miss work due to financial stress about half as often as those who don't. Seventy-nine percent  of employees say having a workplace-sponsored rainy day fund makes them feel more positive about their benefits. 

The same survey revealed that 83% of HR leaders are worried their employees' personal financial issues are affecting productivity, up 5% year-over-year. Employees without workplace emergency savings accounts are one-and-a-half times more likely to be currently looking for a new job or planning to look for a new job in the next six months.

Read more: Fidelity and Starbucks team up to help employees build their savings

ESAs can help employees pay for unexpected, essential expenses, and build better savings habits as soon as possible. This can prevent employees from getting sidelined and set them on the path for financial success. 

"All sorts of crazy things can happen in life," Miller says. "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."