From an unexpected medical crisis, to the death of a loved one, to a
Traditionally, in times of need, organizations may have things like time off and various
"Even when someone is compensated correctly for the work they're doing, it doesn't mean that a several thousand-dollar hit in some category wouldn't be destructive," says Erica Golden, Banyan Software's chief people officer. "It would be, and it would pull away from their ability to stay connected to their work."
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Healthcare debt is the number one reason Americans file for bankruptcy, and a large part of this stems from hospital stays. Debt.org reports that patients who are admitted spend an average of 4.6 days in the hospital, where a median per-day cost in the U.S. is $2,883, varying by state and insurance coverage, among other factors. Procedures such as surgery increase this cost drastically, with some common operations exceeding $100,000.
If an employee faces the death of a loved one, they will be burdened with funeral expenses on top of the emotional toll, which cost an average of $8,300, according to the National Funeral Directors Association.
Six weeks ago, Banyan rolled out an employee resource fund that workers can access when they face a surprise expense, such as an unexpected medical bill or an expense related to caring for a family member. It is currently in the pilot stage with no cap on the amount someone can receive, and is available to their 3,000-member global workforce.
"To have a company-wide process that allows for our employees to maintain their pride as they're going through a tough time, but to also feel that overall deep breath of knowing that, if something were to happen, the organization would be there for them in a really straightforward way, has provided relief that has been very emotional for our employees," she says. "They just get to go to work, continue to move forward and continue on their promotion pathways without having to talk through some of these circumstances."
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Because financial stress is one of the largest issues employees face, but also an extremely sensitive one, much consideration when designing this program has been given to employee privacy, Golden says. The company has communicated to all workers that requests for funding go directly to Golden, and the details are not shared outside of the designated three-person resource fund committee.
Recently, the company found another need for emergency assistance when Hurricane Helene devastated areas across the southeast at the end of September. While it may change, analysis from real estate data firm CoreLogic projects the cost of damage to property owners between $30 and $47 billion. More than 200 people were killed, and countless lost the contents of their homes or their homes altogether. Many people will face financial hardship for a long time as a result: In one North Carolina county hit especially hard by flooding, only 941 out of 140,000 had flood insurance, according to global insurance company Swiss Re.
Companies can do a lot to aid their employees with a combination of compassion and planning during unpredictable life events, Golden says. Banyan has already provided $1,000s in relief for its employees affected by the hurricane, though the breakdown of allocated money, like with all other relief fund request details, remains internal. The same privacy policy exists for the company's educational reimbursement program.
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"It's important for employees to know that in the entire cycle of requests, their information is protected, confidential, [and] not being used for any kind of business or even leadership personal gain in terms of reputational value," Golden says. "[They need to know] that the support truly just exists."
Employee appreciation for Banyan's commitment to caring is reflected in its high retention rate and 4.8 out of 5 rating on Glassdoor. As the employee relief fund gets more feedback, the company will continue to make improvements and explore additional areas to ensure its workforce is holistically supported, says Golden.
"This is about trying to offer overall relief and overall reduction of stress," she says. "It's important for our employees to know that if the what-if happens, there is a safety net there that just helps [them] operate a little bit easier throughout their days. It may prompt some different requests for additional benefits, other benefits that we don't have on the docket yet, [and] that's a great opportunity for us to figure out what our people need."
