Published 2 years ago.
About a 4 minute read.
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Member companies will assess the financial security and health of their employees as part of a new effort to address the economic hardships of workers.
Chipotle, Chobani, Even, Prudential Financial,
Verizon and other leading
companies have joined PayPal and JUST Capital in the Worker Financial
— a coalition aimed at making workers’ financial security and health a C-suite
and investor priority. The initiative elevates worker financial wellbeing to a
top priority as business leaders consider solutions to shape a sustainable and
inclusive recovery from the COVID-19
and take action for racial
that improving workers’ financial wellness benefits not only workers themselves,
but also business outcomes including productivity, innovation, customer
satisfaction, and employee turnover and engagement. The Worker Financial
Wellness Initiative joins those from a growing number of corporate heavyweights
to name a few) that have turned their attention to improving worker inclusivity
and wellbeing — particularly for minorities and women, who have been
disproportionately impacted during the pandemic.
PayPal and JUST
launched the Worker Financial Wellness Initiative in October
in collaboration with Financial Health
and Good Jobs
Companies joining the initiative commit to conducting a financial wellness
assessment of their workforce to understand their financial vulnerability and
identify opportunities to improve their resilience over the long term.
Specifically, these companies will complete at least one assessment within a
12-month period, such as an employer-provided benefits assessment, an employee
survey, or a living wage
“If we are going to deliver on the promise of stakeholder
we need to help more corporate leaders and investors understand that employees
are a company’s most valuable asset, and that investing in their well-being will
drive long-term financial success,” said JUST Capital CEO Martin Whittaker.
“Through the Worker Financial Wellness Initiative, we’ll continue to build the
growing body of evidence demonstrating the connection between the financial
security of a company’s workforce and their overall business performance, and
refute the anachronistic Wall Street narrative that raising wages destroys
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PayPal conducted an assessment on the financial wellness of its hourly and
entry-level workforce in 2018 and found that many employees were struggling to
pay their bills each month despite market pay alignment. The findings propelled
the company to institute several changes to improve its employees’ financial
well-being, including lowering the cost of healthcare benefits, making every
employee a stockholder, raising wages where appropriate, and offering new
financial coaching programs. Since implementing these changes, the company has
helped raise the minimum PayPal-defined estimated net disposable income for
hourly and entry-level workers in the U.S. to at least 18 percent, making
significant progress to reaching its target of 20 percent for all employees
“At Chipotle, we believe in investing in the overall wellness of our employees
by offering robust benefits that address physical, mental and financial health,”
said chairman and CEO Brian Niccol. “Being a founding company in the Worker
Financial Wellness Initiative demonstrates our commitment to being an industry
leader and ensuring that we’re truly assessing the comprehensive needs of our
workforce. Joining forces with other leading organizations and using our
collective voices will shed greater visibility on this important matter —
impacting not only our individual companies, but potentially the economy as a
Participants in the initiative will have access to a wealth of resources —
including quarterly webinars highlighting company best practices, and guidance
on developing and deploying financial wellness assessments. Companies interested
in more specialized tools and resources can receive tailored recommendations
from initiative partners based on their assessment results, as well as enhanced
peer learning workshops for HR teams. The partner organizations will also
continue to share case studies, business case analysis and best-practice
insights to help educate, inform and catalyze the wider business community.
With the first cohort representing approximately 260,000 US workers across a
range of industries, the program presents a unique opportunity to demonstrate
what companies can accomplish when they come together with a shared goal of
improving the financial health and resilience of workers across the nation.
"It's no secret that it is getting harder to recruit and retain talent at all
levels, especially with hourly employees," said Jon Schlossberg, co-founder
and executive chairman with on-demand pay platform Even — which PayPal
to help it improve the financial health of its own workforce. “During a time
where keeping a productive and loyal workforce is crucial, Even provides
employees with the tools they need to improve their financial health; and in
return employers are rewarded with a more productive, engaged and loyal
workforce. We're proud to be part of this initiative and look forward to
partnering with this coalition to raise the importance for all employers to play
an active role in the financial health of their workforce."
Companies interested in joining the Worker Financial Wellness Initiative can
Published Jul 21, 2021 11am EDT / 8am PDT / 4pm BST / 5pm CEST