Employers join Just Capital, PayPal in push for worker financial wellness

Diving letter:

  • Just Capital and PayPal are trying to make employee financial well-being a priority for C-suite executives and investors. The two organizations announced on July 13th the first group of companies to join their initiative, a cohort that includes Chipotle, Chobani, Even, Prudential Financial and Verizon.
  • The companies will assess the financial vulnerability of their employees and identify ways to improve their tax situation in the long term. Participants can choose whether they want to evaluate employer-provided benefits or living wages, or whether they want to take part in an employee survey. Such ratings reflect the purpose of the initiative itself, Just Capital said in a press release, by aiming to “ensure that business leaders are aware of the financial well-being of workers”.
  • Just Capital and PayPal worked with the Financial Health Network and the Good Jobs Institute to launch the initiative. The organizations will provide a number of resources to participating companies, including some for HR and compensation professionals.

Dive Insight:

Employers take note of the financial health of employees.

Almost two-thirds (62%) of employers said they felt “extremely” responsible for the financial well-being of workers Bank of America’s September 2020 report. That’s compared to 13% who gave the same answer in 2013, the bank said.

When it came to the specifics of workers’ finances, employers said they felt even stronger. Eighty percent said they were “very or extremely responsible” for helping employees prepare for the needs and costs of retirement health, for example.

Employers can optimize their financial wellness offerings by eliminating the silos between organizational leaders and HR professionals, write Daniel Bryant and Heather Garbers at one HR Dive opinion. Together, these teams can use analytics to identify employee needs, expand existing programs, and promote new initiatives.

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