Employee Relief Fund - A Benefit to Consider in 2026
Jackie’s house burns down in a fire. She makes it out safely, but nearly everything she owns is gone. Another coworker lost their daughter in the Texas Hill country floods this year. Doug’s wife was recently diagnosed with pancreatic cancer and the medical costs and out-of-pocket amounts will be devastating to their family. Situations like this play out across organizations where an unplanned event can place a real hardship on a coworker. This is why more companies are beginning to incorporate an Employee Relief Fund as a corporate benefit.
As a thirty-year employee benefits consultant, I prefer to take a more holistic view of the benefits of working for a company than competitors who focus on insurance products that include commissions. Here are a few reasons why an Employee Relief Fund is being deployed with greater frequency as a corporate benefit:
Natural disasters are occuring around the world with greater frequency
Consumers are experiencing higher prices for everything from groceries to healthcare
Nearly 40% of adults would have difficulty covering an unexpected expense of $400, according to a Federal Reserve study
However, the primary reason why a firm would provide its workforce an Employee Relief Fund benefit is to show that you care. Your corporate brand is only validated when it becomes actionable. This is why a tangible benefit fund that can be accessed when disaster impacts a team member is characteristic of a people first organization. Firms like Wyndham Hotels, Aldi, Elevance Health, NRG and more have deployed this as a benefit and will engage a third-party firm for the fund’s administration. Our Alliant employee benefit consulting teams can help clients by canvassing the marketplace and showcasing the leading firms that administer this type of program and how much it will cost.
Here is How It Works
Oftentimes an Employee Relief Fund gets established only after a real hardship impacts a team member. Think of it as a ‘Go Fund Me’ that branded to your organization for your own people. The typical hardships range from floods, wildfires, winter storms, serious illness or injury, domestic violence, military deployments, hurricans, earthquakes, epidemics, loss of life or civil unress or terrorist attacks.
Step 1: Fund Design - Our clients will configure the fund to meet your company’s specific needs with a unique fund name, specific hardships and expenses, and a defind charitable class (those who will apply for a grant).
Step 2: Build Donations - Tax deductible donations can be made through a varied of methods like credit cards, payroll deduction or unused PTO. However, the fund is initiated with a starting donation that is funded by the company.
Step 3: Award Grants - Eligible employees complete a grant application through the third-party service provider website with a compassionate support team providing human assistance if needed. This confidential process is then reviewed by the fund custodian who completes an objective verification of hardship and review before awarding grant funds.
Step 4: Impact is Measured - A relief fund advisor helps maximize fund success with diagnostic dashboard reporting that provides important metrics to keep your firm informed and empowered to continue its impact and growth.
What Does It Cost
For reasons related to tax deductibility and confidentiality, a company offering this benefit will want to engage a third-party custodian registered as a non-profit. There is traditionally a small start-up cost of between $7,000-$13,000 annually with an ongoing fund administration of around 1% fee on all donations. The primary cost will come from deposits to the fund from corporate and employee donations.
There are many other ways an employer can live out its culture of compassion and caring for its team members. Employee benefit offerings here can range from more modernized EAP (ex. support for Employee Resource Groups (“ERGs”), workplace chaplaincy, interest free financing of major medical expenses, or simply taking the time to put together a care committee that does something meaningful when learning of a loss of a loved one or pet.
Your people will always remember who was there to help lift them off the mat when they get knocked down. Ralph Waldo Emerson famously said ... “I Cannot Hear What You Are Saying Because Your Actions Speak So Loudly.”
Steve Harris, SHRM-SCP, CEBS, is a Senior Vice President and Shareholder with Alliant. His mission is to empower companies with purpose to measurably better their people and business through human capital and total reward solutions in the workplace. He can be reached at steve.harris@alliant.com or (214) 499-1308.
