A Financial Lifeline for Workers in the Path of Storms
This post was written by Catherine Scagnelli and originally appeared on Canary's website .
Millions of employees are staring down the impacts (physical, mental, and financial) of natural disasters that are often more powerful, frequent, and unpredictable. Just recently the southern United States has been particularly hard hit recently , with devastating tornadoes tearing through communities and catastrophic flooding wreaking havoc on homes and infrastructure. Possibly lost amid the news of current disasters, experts predict an above-normal 2024 Atlantic hurricane season this year. When we know employees are already stressed by their finances, recovery from natural disaster can seem insurmountable without community support systems. It’s never been more critical for companies to show they care about their biggest asset – their people – by implementing more human-centered preparedness plans. This includes disaster relief funds to address employee well-being in the aftermath of disaster.
When I wrote an original piece on the increased frequency of natural disasters in 2022, states were experiencing unpredictable wildfires. Back then I noted that historically, wildfires are most common from spring into fall . However, Colorado saw one of its worst wildfires in late December 2021; Big Sur in California faced a wildfire disaster in early 2022. Both disasters were well outside typical, predictable wildfire seasons.
The Human Element of Corporate Disaster Preparedness Plans
The human impact of disasters is jarring: an estimated 2.5 million people in the United States were forced from their homes by weather-related disasters last year. Additionally, research has found that “almost 60% [of Americans] report having less than a month’s worth of expenses in liquid savings” . For that 60%, financial recovery is challenging, if not impossible, when faced with hardships driven by factors outside their control. There is no more acute example of this than a natural disaster. Most companies recognize the business toll of disaster, which is reflected in the formal business continuity plans that many, especially large businesses, put in place to protect their business assets and core operations – computers, data, and physical locations. But often, these plans fail to contemplate the full range of human consequences that deserve an emergency response.?
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Beyond immediate survival needs and material loss concerns, a person’s financial well-being is integral to getting back on their feet. Even for the most prepared, a natural disaster’s unpredictability can throw one’s financial life into disarray. Natural disasters are the epitome of an unexpected life event that can cause financial trouble for any of us; troubles that are hard to recover from without the right money at the right time. In addition, many workers experience personal events each year that operate just like a natural disaster.
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 much paperwork. Even small amounts of financial assistance can be helpful and appreciated in the immediate aftermath of a storm when it’s dispersed quickly and equitably across the affected employee population. That said, there is a rising need (and even expectation) for employers to offer financial relief, like Canary’s emergency payments , to help with the inevitable repercussions on families’ lives. Disaster or not, we regularly see the invaluable impact of timely emergency payments 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 nationwide.
The Case for Employer-Sponsored Disaster Relief Funds
Organizations can set themselves apart as an employer of choice by acknowledging the eventuality that their workforce will experience financial emergencies. Establishing themselves as part of their employees’ safety net, companies will reap the rewards of a happier, more engaged, and more productive workforce. Being prepared to act quickly and help employees affected by devastating events is equally, if not more, important than taking care of the rest of the business. 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.
Ready to learn how your organization can be there for employees when disaster strikes?
Reach out to our team today ?to learn about supporting employees through financial hardships. In the meantime,?download our most recent Impact Rep ort ?to learn how employee relief funds support modern, diverse workforces in uncertain times.
Visit Canary at www.workwithcanary.com