Ted Benna, "Father of the 401(k)," Joins Salt Labs as Strategic Advisor to Help Rethink Financial Wellness for Frontline Workers

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Apr 18, 2024, 09:02 ET

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, [email protected]

SOURCE Salt Labs, Inc.