How Relief Funds Can Help Your Team During Difficult Times
By Douglas Stockham
Individuals around the world experience devastating and often unforeseen personal hardships every day – whether it be the death of a loved one, a serious illness or injury, or instances of domestic violence. No matter how difficult the hardship is to endure on an emotional level, it can prove almost insurmountable when combined with the financial strain that often accompanies these events.
Financial Strain Caused by Personal Hardship
In a recent report, HR leaders across the United States and Canada reported that the most common hardships that affect their employees include: serious illness or injury (69%), death of a loved one (53%), impacts to primary residence (45%) and domestic violence (32%). Beyond one’s personal life, these hardships can adversely impact an employee’s job performance, productivity, mental health, and overall well-being. That impact is often compounded when an employee has to handle the financial stress of paying medical bills, death-related expenses, or costs associated with rebuilding one’s life as a domestic violence survivor.
Hardships such as serious illness or injury can strike without warning, leading to substantial medical bills, travel costs for treatment, and expensive medications. Many of these costs are not fully covered by insurance or reimbursable by health savings accounts (HSAs). Since health emergencies require immediate attention and immediate funds, team members can be left feeling even more defeated by the sudden life change.
The data proves this to be true: 72% of team members dealing with financial strain report negative impacts on their mental health. Additionally, 91% of those struggling with mental health issues report decreased productivity at work, with half losing more than five hours per week. Even more staggering, nearly eight million lost days of paid work each year can be attributed directly to domestic violence issues at home.
Establishing an employee relief fund can help to significantly lower these percentages and ensure team members feel supported when they need it the most, all while protecting the organization from productivity losses.
Some Relief in Times of Hardship
“You never know when you may need a little help, but just knowing that there is this kind of help available makes it much easier for us to focus at work and on other important things in our lives. We really appreciate your support.” – EAF Grant Recipient
On the coattails of Mental Health Awareness Month this May, it’s time for more companies to step up in support of their employees in times of personal hardship.
Providing crucial financial assistance to employees dealing with various expenses through a third-party relief fund administrator like Emergency Assistance Foundation (EAF) can lift some of the financial burden – while providing emotional support and enhancing workplace morale. In addition to awarding tax-free grants to those struggling, relief funds also enable team members to directly help their colleagues in need through tax-deductible donations. In 2023 alone, EAF awarded more than $30 million in financial assistance to individuals impacted by personal hardships.
Boosting mental health by eliminating or lowering stress caused by abrupt financial strain, fostering and deepening employee engagement and morale, and enhancing positive organizational culture by building a reputation as a caring and responsible employer are all real advantages that come with sponsoring a relief fund.
Providing Essential Relief for Team Members
“Thank you for thinking about your employees. Thank you for caring about us during unexpected hardships. The generosity of the donors is amazing, and for someone like me, a life-saving unselfish act.” – Kimberli, EAF Grant Recipient
By partnering with a third-party relief fund administrator like EAF, the process is managed by those who can act swiftly and comprehensively. Third-party administrators will also significantly reduce the amount of in-house resources that are needed to maintain a relief fund successfully, allowing an organization to outsource navigating the complex compliance and regulatory requirements.
By establishing a fund today, your organization can help team members affected by unforeseen hardships and disasters pull through difficult times with the generous support received from their employer and fellow colleagues.
Douglas Stockham is president and co-founder of Emergency Assistance Foundation, based in West Palm Beach, Fla., and serving organizations worldwide.