Nearly two-out-of-three Americans are uncomfortable with the level of emergency savings in their bank accounts according to a recent report, with 27% of adults not having any emergency savings at all. When life inevitably throws a curveball at you, many people are left scrambling to find a solution, bringing with it stress, distraction, and strain not only on their personal lives, but also on their work life.

According to the goBeyondProfit 2024 Business Generosity Report, nearly 90% of employees see Emergency Assistance as a valuable demonstration of generosity – yet only 37% of executives currently offer them. Employers may want to step into the gap to support their employees, but struggle to define and administer a program that offers fair, consistent allocations of limited resources.

That’s where employee assistance programs (EAPs) come into play. EAPs are a way for companies to provide a crucial safety net for employees, offering financial support and resources to help them cope with life’s unexpected challenges.

By investing in EAPs, companies demonstrate their commitment to employee well-being and create a more supportive work environment.

What exactly is an EAP?

Employee Assistance Programs provide financial assistance to employees facing personal challenges in their life. Companies have greatly expanded the resources covered by EAPs to include:

• Legal Assistance
• Adoption, surrogacy, or family-planning costs
• Major medical emergencies
• Home catastrophes or natural disasters
• Substance abuse treatment
• Mental health support
• Unaffordable childcare or elder care

What are the benefits to an EAP?

While many executives offer EAPs because they feel it is the right thing to do, it is important to note the many business benefits associated with these programs.

Greater Retention: With more than half (51%) of employees stating they have left a job due to a lack of generosity to employees, EAPs are an important tool in demonstrating generosity as a business. Additionally, instead of having to leave a job in search of a higher salary, employees can be more loyal to companies when times get tough.

Increased Productivity: Financial stress can be one of the biggest distractions for any employee. Data by goBeyondProfit showed that increased access to childcare, mental health support, and other financial benefits can serve as positive influences on employee productivity. In fact, data shows employees who are financially secure will work harder, be more engaged and productive, and be more committed to the company.

Talent Attraction: goBeyondProfit found that generosity is even more important to Millennials and Gen Z who will soon account for over half of the workforce. These cohorts are more likely to leave a job for a lack of generosity, but also to seek out employers who offer programs they deem generous, like EAPs.

EAPs in Action

All across Georgia businesses are increasingly offering Employee Assistance Programs as a means of demonstrating generosity to their employees. Working together with a third-party provider, such as The North Georgia Community Foundation, companies can design an EAP that fits their needs, establishes clear guidelines for assistance eligibility, as well as hand-off the administrative burden associated with these programs.

Cottrell Trailers, a renowned global leader in car transport solutions based in North Georgia, has partnered with NGCF to offer a comprehensive EAP. This program provides vital support to employees in need, further demonstrating Cottrell Trailers’ commitment to the well-being of its team members.

“We have been able to provide financial assistance to our team members such as housing, unexpected medical bills, funeral arrangements, etc. This support has alleviated some of their burdens, allowing our employees to focus on their families during these dire times and consequently pointing them in the direction to getting back on their feet, thus making them a more present, dedicated team member…We are proud of the positive impact we have made and are committed to continuing these efforts.”

The City of Gainesville, Georgia: Government entities can also benefit from implementing an EAP. The City of Gainesville, in collaboration with NGCF, offers an EAP tailor-made for City employees. This innovative program goes beyond providing support, empowering City employees to demonstrate their generosity by making donations to the program, fostering a culture of care and compassion within the organization.

“Each employee has both the opportunity to donate to the fund and to utilize it should it ever be needed…The swiftness in which the NGCF helps disburse funding allows employees to lessen the burden of the unexpected situation and helps prevent the situation from taking such a hard toll on the employee financially.  The partnership between the NGCF and the City of Gainesville has helped numerous City employees, and their families recover from unfortunate situations.”

About North Georgia Community Foundation:

The North Georgia Community Foundation (NGCF) provides charitable giving options and philanthropic advice to individuals and organizations. They offer personalized service in establishing charitable funds, allowing donors to support causes they care about while also receiving tax benefits. Each fund is tailored to meet the specific needs, goals, and philanthropic objectives of the individual, family, or company they are working with.

By partnering with NGCF, donors can create lasting legacies that reflect their values and make a meaningful difference.