NEW
YORK, April 18, 2024 /PRNewswire/ -- Salt
Labs, a first-of-its-kind employee rewards and incentives
platform for frontline workers, today announced that
Ted Benna, the widely regarded
"Father of the 401(k)" is joining the team as a Strategic Advisor.
Benna invented the 401(k) to be used as a savings tool by
employees, and it has become the industry standard for financial
wellness offerings among employers. He believes that Salt Labs has
created an innovative, non-cash rewards and incentives plan that
can help frontline workers build for the future.
Originally called the "salary reduction plan," the 401(k) was
never intended to be a savings mechanism for the hourly worker.
This employee population needs all of their pay for necessities
like rent, food and bills, with nothing remaining for designated
savings.
"I've been thinking about how to address the savings issue with
hourly workers for a long time, since the 401(k) requires a salary
reduction that lower-paid hourly workers simply can't afford to put
away each month," Benna said. "When I heard about what Salt Labs
was doing, I knew they were onto something. We need novel and
modern solutions to solve for a pending retirement crisis and Salt
Labs has built just that for the most essential workers in our
economy."
According to Goldman Sachs Global Investment Research, the
personal savings rate for the low-to-moderate-income segment is
negative 2%, meaning 70% of the population consistently spends 102%
of every paycheck, leaving them with nothing substantial to show
for their hard work. It's also true that 63% of this population
does not have $500 in emergency
savings, according to CNBC in August
2023. These circumstances have severe repercussions for
families, communities and employers alike.
Salt was founded to enable frontline workers to own a new asset
beyond their paycheck. For every hour an employee works, they can
earn one Salt, and their Salt Balance continuously grows over time,
becoming a unique store of value. As their Salt Balance grows,
there's an opportunity for the worker to exchange their Salt for
something they value, such as a savings product or vacation, and
65% of all Salt users are setting long-term goals for their
savings.
Instead of deducting from the employee's paycheck for savings,
like airline miles or hotel points, workers can only earn Salt by
spending their most important resource – their time. Earning Salt
supports frontline workers' financial wellness by creating a daily
savings habit and a goal-setting framework that encourages
employees to plan for the future, resulting in their staying 56%
longer. This is supported by a recent survey in which 91% of
employees said they feel more financially secure after earning
Salt.
As Strategic Advisor to Salt Labs, Benna will be invested in the
go-to-market strategy aimed at employers who want to help their
frontline workers with a rewards and incentives platform
specifically designed for their needs. Benna will apply his vast
knowledge of implementing and scaling impactful financial tools to
help employers achieve maximum results at minimum cost.
"Financial wellness plans have been about helping employees
brace for unexpected expenses or save for retirement; there hasn't
been anything in between," said Jason
Lee, founder and CEO of Salt Labs. "I'm thrilled that Ted
has chosen to work with us to help improve financial wellness
outcomes for everyday Americans. What we are doing here is
essential to building a savings movement among frontline workers,
and it's long overdue."
You can visit this resource page to
learn more about the partnership and recent interview with
Jason Lee and Ted Benna.
About Salt Labs
Salt Labs is an employee rewards
platform for frontline workers. Built to capture the value of work
beyond the hourly wage, its mission is to build long-term employee
wealth through a first-of-its-kind earned loyalty asset that leads
to higher retention and productivity.
Salt Labs has over one hundred thousand users and was
founded in late 2022 by a team of repeat founders Jason Lee and Rob
Law, who founded DailyPay, a $2B HR and FinTech company.
CONTACT: Jaime McDougall,
jaime.mcdougall@saltlabs.com
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SOURCE Salt Labs, Inc.