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Emergency savings are widely accepted as an important tool for improving financial well-being. Increasingly, they are also being offered as a financial wellness benefit in the workplace. In recent months, for example, large employers like Amazon, Delta Airlines, and Humana have started to offer their employees a workplace emergency savings account in which workers can save for financial emergencies through payroll deduction.

This study explores the relationship between emergency savings–related behavior and workplace outcomes. It examines how financial insecurity may be reduced and workplace outcomes may be improved by helping workers to save for unexpected expenses. 

This research uses longitudinal data from a nationally representative internet panel, the Understanding America Study (UAS), to consider the following questions:

  1. Do workers who save for financial emergencies experience higher levels of productivity at work, as reflected in subjective and objective indicators of workplace productivity?
  2. How does having emergency savings affect job satisfaction and employee turnover?
  3. Is there a different relationship between emergency savings–related behavior and workplace productivity between workers in white- and blue-collar industries?

It concludes that having emergency savings is strongly predictive of both objective and subjective measures of better job performance. Saving for emergencies is associated with a seven percent increase in self-assessed superior job performance and a 16 percent increase in the likelihood of receiving a raise or promotion. It also finds evidence that emergency savings are associated with higher levels of job satisfaction and lower levels of employee turnover.

Explore the detailed findings in the report’s discussions, tables and appendices.

This study also looks at the differences in these effects on white- and blue- collar workers, as well as the number of days of sick leave, leave of absence, and vacation taken.

The research suggests that by facilitating employee emergency savings as an integral part of financial wellness benefits, employers may not only improve employee financial security but also increase workplace productivity and enhance employee retention.