In recent years, it’s become clear that communities across the United States feel the impact of natural disasters more often than ever. Take wildfires for example: historically, they are most common from spring into fall, but Colorado saw one of its worst wildfires in late December last year; Big Sur in California faced its own wildfire disaster earlier this year. And it’s not just wildfires. Hurricanes, tornadoes, and flooding are all becoming more frequent and unpredictable.
What’s more jarring is the human impact: more than 40% of Americans live in an area affected by extreme weather last year. Additionally, our research found that “almost 60% [of Americans] report having less than a month’s worth of expenses in liquid savings”. Hardship recovery can be challenging when faced with the acute financial hardship driven by factors outside of someone’s control. It can be disastrous for a growing number of Americans without systems and communities to support them.
In areas commonly affected by natural disaster, employee disaster relief funds are an essential in helping workers recover.
Beyond immediate survival needs and material loss concerns, a person’s financial wellbeing is an integral part of getting back on their feet. And even for the most prepared, one’s financial life can be thrown into disarray by the unpredictability of a natural disaster.
“Many families live on the financial edge, but a natural disaster can throw even better-situated families into financial turmoil.” – Urban Institute’s report, Insult to Injury: Natural Disasters and Residents’ Financial Health
When Available Disaster Relief Funds Aren’t Enough
While communities most affected by natural disasters rely on insurance or government aid for assistance, it often takes a long time and involves a great deal of paperwork. It’s in the immediate aftermath of a storm that even small amounts of help can be useful and appreciated. That said, there is a rising need (and, even, expectation) for employers to offer employee disaster relief funds to help with the inevitable repercussions on families’ lives. At Canary, we see the invaluable impact of timely cash grants to help people meet their basic needs–medical bills, rent or mortgage payments, food–and recover in the face of financial hardship. This need is even more profound in light of what we know about the changing reality of natural disasters across the country.
In the midst of the Great Resignation, or perhaps more accurately, the Great Renegotiation, employers are smart to prioritize the health and happiness of their employees. Many workers are leaving jobs with low pay and limited benefits, showing a decided preference for employers that offer a suite of offerings that, beyond just pay, care about employee wellbeing.
A recent Betterment survey found that “overall, 74% of workers said they would be likely to leave a job for an employer that offered better financial wellness benefits.”
The Case for Employee Assistance Funds
Organizations can set themselves apart as an employer of choice by anticipating the eventuality that some of their workforce will experience emergencies that negatively impact their financial health. Natural disasters are the epitome of an unexpected life event that can cause financial trouble for any one of us; troubles that are hard to recover from without the right money at the right time. To that end, employers can no longer afford to be reactive to natural disasters, but instead proactive and ready to help their communities whenever the next emergency strikes.
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If you want to learn more about how cash grants can help your employees, natural disaster or not, click here to learn more about Grant Circle today.
