KFC serves up a new financial wellness program to employees
Building savings can be a daunting task for many paycheck-to-paycheck workers. That’s why the KFC Foundation has partnered with the nonprofit SaverLife to offer a new personal finance program to all of their US restaurant employees.
The newly introduced MyChange program is designed to help KFC team members build short-term savings and develop long-term savings behavior. The six-month matching program allows employees to save $ 40 per month and receive an additional $ 40 along with a $ 20 sign-up bonus; The goal is to have $ 500 in savings by the end of six months.
“Having an emergency fund has always been important and valuable,” says Emma Horn, executive director of the KFC Foundation, an independent non-profit organization funded by KFC franchisees. “The uncertainty surrounding the pandemic has underscored the need to equip restaurant workers with resources to help them build their financial literacy, set up a short-term emergency fund, and help franchisees attract and retain top talent.”
Employees who work in KFC restaurants typically earn no more than $ 12 an hour, which is what the Indeed job search engine numbers, which is the same as the rest of the fast food industry. Emergency savings are a growing trend among employers, but currently only 36% of employers offer their employees non-retirement financial advice and only 32% of companies offer their employees financial incentives to save, according to SunTrust data -Banks.
Read more: Benefits in Action: How This CEO Changed Financial Wellbeing by Addressing His Own
According to a 2019 Federal Reserve study, 37 percent of Americans couldn’t cover $ 400 unexpected expenses without going into debt. However, according to a study by SaverLife, savings of just $ 250 correlate with increased home security, the ability to pay utility bills, and avoid expensive loans.
Read more: Employees need emergency savings benefits more than ever
“In the past, many of these foundations gave a cash grant when someone had an emergency or real financial hardship,” said Neha Gupta, vice president of marketing at SaverLife. “But now there is a bigger shift to start a program where people are encouraged to save and help themselves.”