PayPal Holding Inc. (NASDAQ:PYPL) and JUST Capital, in partnership with Good Jobs Institute and Financial Health Network, have launched a new initiative that that will make the financial security and health of workers a C-suite priority.
New initiative to help financially struggling workers
The initiative will help equip companies with the right resources and tools to enable them to take action and ensure workers are not struggling money-wise. The organizations have called for CEOs of the US’s largest companies to carry out Worker Financial Wellness Assessment as an important step in understanding their staff’s financial vulnerabilities. It will also help in the identification of opportunities to promote resilience in the long-term.
According to JUST Capital’s survey, before the pandemic, around 50% of employees at Russell 1000 companies aren’t making enough money to support a family. Even with having a partner working part-time, that is not enough, and the pandemic worsened these economic inequalities. Martin Whittaker, the CEO of JUST Capital, said that markets need to help the building of an equitable society. For over 40 years, labor consideration as a cost that needs managing and fear of Wall Street retaliation has kept wages stagnant. Martin said that we can only deliver stakeholder capitalism‘s promise once investors and business leaders realize that employees are a valuable asset. As a result, there is a need to invest in their wellbeing to drive long-term financial success.
PayPal to offer leadership in improving employee wellness
According to research, when employees are financially secure, important business outcomes like customer satisfaction, productivity, and employee turnover tend to improve. This implies that workers’ financial wellness should be a priority, and companies need to incorporate it in any assessment of operations and planning for the future.
The input of PayPal’s leadership in the initiative is building on its innovative work to improve its employees’ financial wellness. PayPal set to increase the Net Disposable income of its employees by 20% in 2018 following an assessment of entry-level and hourly employees’ financial wellness.