The Aspen Institute Financial Security Program is exploring how additional liquidity solutions can help workers solve today’s problems, be resilient to financial shocks, save, and successfully build long-term wealth. In addition to good pay, traditional benefits, and access to financial advice, employers can offer liquidity solutions like emergency savings accounts, loans, and hardship funds. Employee emergency hardship funds are notable because they are almost always distributed in the form of grants to eligible applicants.

We partnered with Canary, a provider of employee emergency relief funds, to explore how workers used this workplace offering. We conducted six in-depth interviews with employees of a firm that offers Canary’s emergency relief fund, called the Grant Circle, to learn about their experiences accessing emergency funds. Our goal was to understand how they thought about, understood, and leveraged this offering when faced with financial emergencies, as well as how it impacted their financial security and experiences at work.

Key insights from our interviews include:

• An emergency relief fund was a crucial source of stability for low- and moderate-income employees and improved their financial well-being. The emergency funds helped them preserve their assets, avoid taking on debt, and support their mental health.
• The emergency relief fund delivered powerful results for employees, staving off crises and leaving them better off financially and empowered to save money in the future. For our interviewees, the grants’ impact was amplified when paired with other liquidity tools provided by their employer.
• Low- and moderate-income employees strategically viewed their retirement accounts as both emergency resources and long-term investments.
• Grant recipients’ financial goals focused on building savings and increasing self-reliance, with the grant program serving as a catalyst for positive change.
• Having access to an emergency relief fund improved workers’ morale and positivity toward their employer.

The Aspen Institute Financial Security Program thanks Rachel Schneider and Catherine Scagnelli of Canary for their support and guidance. We also thank Myla I. and Maresa C., who helped us connect with employees who had accessed the Emergency Relief Fund at their firm, as well as the six employees who shared their time and experiences with us.