Background: Commonwealth and the DCIIA RRC recently published a new study that delves into the incentive mechanisms tied to emergency savings plans for workers earning low-to moderate-incomes (LMI).The study aimed to understand how offering small-dollar rewards could impact the demand for employer-sponsored emergency savings programs.Findings: As discussed in last week’s Research Minute, the study findings reveal small dollar incentives would have improved the likelihood of LMI workers enrolling in an emergency savings program. Additionally, other desirable features that would likely increase the enrollment in an emergency savings solution include a highly liquid, no-fee emergency savings solution and incentives for consistent savings behavior.The survey showed that incentives offered for consistent savings led to an 8% higher likelihood of enrollment compared to other solutions like a match or a reward for reaching a savings goal. Dollar amounts tested were varied by respondent, but held equal (types of incentives varied, dollar amount did not). Furthermore, influence on enrollment likelihood and preferences did not change between various small dollar amounts (e.g., $15, $25), indicating that within the category of small dollar incentives, each dollar amount variation still had the same effect.Bottom Line: There is an evident demand for employer-sponsored emergency savings programs, with the expectation of growing demand. The study’s findings suggest that offering smaller dollar incentives as a reward for consistent savings might be the most effective approach to encourage engagement in emergency savings programs.