As workplace diversity, equity, and inclusion (DEI) efforts continue to grow, many companies are focusing on representation, pay equity, and creating inclusive environments. However, one important aspect often gets overlooked: financial wellness.
At the center of this issue is emergency savings. Financial security is crucial for underrepresented groups, but it’s often missing from DEI strategies. Let’s explore how offering emergency savings options can promote financial inclusion and help employers boost their DEI initiatives.
Financial Inclusion: The Missing Piece in DEI Initiatives
When we think about DEI, financial wellness isn’t always the first thing that comes to mind. However, without financial stability, other aspects of inclusion can be affected. A company might work hard to create an inclusive culture. However, employees who struggle with unexpected financial emergencies are still likely to face stress, which impacts performance, engagement, and well-being.
Many U.S. households, particularly those from underrepresented groups, have insufficient savings to cover unexpected financial shocks. According to a report by the TIAA Institute, only 40% of Black Americans have emergency savings compared to 73% of Asian Americans. This gap highlights a systemic issue in financial preparedness that DEI initiatives need to address if true equity is the goal.
Disparities in Emergency Savings Across Racial and Ethnic Groups
The disparities in emergency savings by race and ethnicity reflect broader financial inequities. Following the pandemic, 29% of Latino and 31% of Black households with children faced three or more significant challenges, nearly double the rate seen in Asian and White households.
Black and Latinx populations, in particular, struggled with building emergency funds, leaving them more vulnerable to financial instability. These groups are often less likely to have a sufficient financial cushion for unexpected expenses, which only deepens the cycle of financial insecurity.
For many underrepresented employees, an emergency like a sudden medical bill or unexpected job loss can derail their financial health. These employees are more likely to have lower credit scores, delinquent debt, and fewer resources to bounce back from financial crises. When employers fail to account for this financial vulnerability, they inadvertently reinforce inequities that DEI strategies are meant to dismantle.
Why Employers Should Care About Emergency Savings
So why should companies care about emergency savings? Beyond the obvious human element, financial stability can directly impact an employee’s ability to stay productive and engaged. Employees who feel financially comfortable are less likely to experience stress-related distractions and are more likely to stay with a company long-term. Financial stress, on the other hand, can lead to absenteeism, reduced productivity, and higher turnover rates.
The demand for employer-assisted emergency savings programs is rising. More and more employees are seeking financial wellness benefits and emergency savings accounts top the list. Employer-assisted savings accounts are becoming essential for building long-term financial resilience. Companies can enhance their DEI efforts and employee satisfaction and retention by offering these savings programs.
The Role of Emergency Savings in Achieving DEI Goals

Emergency savings accounts are a practical way to address financial inequities and align with DEI goals. Underrepresented groups often face systemic barriers to financial security, and helping employees build a safety net can be a powerful tool for promoting inclusion. This is especially true for lower-income employees, who are often hit hardest by financial emergencies.
In 2021, over 80% of Emergency Rental Assistance (ERA) was delivered to very low-income households earning 50% of the area median income or below. This data underscores the vulnerability of financially insecure employees and highlights the need for employer intervention. Offering emergency savings programs can be a lifeline, allowing employees to handle financial challenges without derailing their long-term stability.
Integrating ESAs: Steps for Employers
Incorporating emergency savings programs into a company’s benefits package can be a pivotal improvement for both employees and employers. By offering these programs, companies address financial inequities and foster improved employee retention. Here are some actionable steps companies can take:
1. Offer Employer-Sponsored Emergency Savings Accounts
Many financial wellness platforms, like Sunny Day Fund, allow employers to set up employee emergency savings accounts. These accounts can be linked to payroll, making it easy for employees to save a portion of their paychecks automatically.
2. Provide an incentive to encourage new savings behaviors
Retirement savings has shown us that employer rewarded savings vehicles are effective at building the wealth that employees are struggling to accumulate on their own. Employer rewards on emergency savings programs serve as the carrot to build better financial behaviors and show employees that their financial stability is a priority to their employer.
3. Financial Education and Resources
Offering workshops or resources on financial literacy can empower employees to take control of their financial future. This can include tips on budgeting, saving for emergencies, and managing debt.
4. Inclusive Savings Programs
Emergency savings programs should be inclusive and adaptable to diverse employee needs, particularly for underrepresented groups facing unique financial challenges. Out-of-plan ESAs, which fall outside ERISA, offer flexibility, allowing employers to target specific populations. For example, an employer could offer employer rewards only to hourly or low-to-moderate income (LMI) workers in their ESA, who often face more financial instability, while still allowing all employees to contribute to the savings program through payroll deductions.
By taking these steps, companies can actively promote financial inclusion, ensuring that all employees, regardless of background, have the tools and resources needed to achieve financial security.

Building Financial Security for a Truly Inclusive Workplace
DEI strategies go beyond simply promoting diversity or building inclusive workplaces. They’re about promoting an environment where every employee can succeed—both professionally and personally.
When companies help underrepresented employees build a financial cushion, they’re not just supporting their immediate needs, but empowering their overall well-being.