Written on: September 25th, 2023
From CNBC (1) we find out Delta Air Lines is giving 90,000 eligible workers a chance to boost their emergency savings by $1000. Here at smilingdad, we think it’s a great idea and encourage more companies to add matching emergency savings to benefit their workers.
The issue
- More than half of Americans live paycheck to paycheck
- 57% can not afford a $1,000 emergency expense
The fix
- Emergency-savings benefit was introduced with Secure 2.0 Act
- Available to all Delta workers below director level
- Delta workers complete one financial coaching session
- Workers receive $750 directly deposited into a Fidelity account upon session completion
- Delta matches employee contributions via payroll deductions up to $250, for a total benefit of $1000
- Companies such as Best Buy, Levi’s and Starbucks have introduced an emergency-savings benefit
“Financial literacy is the civil rights issue of this generation.”
“It’s as important as the right to vote,” he said.
“It’s the lifeblood to being able to operate a dignified life.”
John Hope Bryant, chairman and CEO of Operation Hope, on CNBC
How companies benefit
This is a good news item where it is win-win for workers and companies.
- An available cash reserve prevents employees from using high interest credit cards or using hardship withdrawals from retirement plans
- Employees benefit by reducing stress and boosting productivity
- Employees who are financially well are 10 times more likely to be focused at work than employees who are not, according to Fidelity’s Katie Taylor
- The hope is financially stable employees come in earlier, stay longer; and go the extra mile
- Shocker: It’s cheaper to treat people better than hiring and replacing people often
Considering the last week, our emergency savings were tapped to pay for broken sprinklers, past sell by date trash compactor, and leaking dishwasher. It was quite the week.
The Economic Policy Institute (2) says CEO’s made 344 times the typical worker last year. A typical worker would have to work 344 years to make what a CEO makes in one year. I am ready and able to work 344 years over multiple life times! Having a $1000 emergency-savings benefit won’t make up that accumulated difference. It will help workers lead more comfortable, better lives with more dignity.
When we start our business, and we will, retirement match, 529 match, and emergency-savings benefits will be some of the benefits we will offer our workers.
Sincerely yours,
smilingdad
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Notes:
(1) CNBC Delta’s emergency savings initiative offers workers up to $1,000 each. Here’s how it works https://www.cnbc.com/2023/09/23/delta-sets-up-emergency-savings-for-workers-with-up-to-1000.html
(2) EPI Despite slight decline, CEOs made 344 times as much as the typical worker in 2022 https://www.epi.org/press/despite-slight-decline-ceos-made-344-times-as-much-as-the-typical-worker-in-2022-ceo-pay-has-soared-1209-2-since-1978/
smilingdad 