Chipotle, Chobani, Even, Prudential Financial, Verizon, and Other Leading Companies Join Forces with PayPal and JUST Capital to Improve the Financial Health of America's Workforce
Participating companies will evaluate the financial security and health of their employees as part of a new initiative aimed at addressing the economic hardships of workers
SAN JOSE, Calif., July 13, 2021 /PRNewswire/ -- Chipotle, Chobani, Even, Prudential Financial, Verizon, and other leading companies have joined PayPal and JUST Capital in the Worker Financial Wellness Initiative, a coalition aimed at making workers' financial security and health a C-suite and investor priority. Research shows that improving workers' financial wellness benefits not only workers themselves, but also business outcomes such as productivity, innovation, customer satisfaction, and employee turnover and engagement. The initiative elevates worker financial well-being as a top priority as business leaders consider solutions to shape an equitable and inclusive recovery from the COVID-19 pandemic and take action for racial equity.
PayPal and JUST Capital, in collaboration with Financial Health Network and Good Jobs Institute, launched the Worker Financial Wellness Initiative in October 2020. 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 assessment.
"At PayPal, our employees are the most important stakeholder we serve. To have any of our colleagues live with financial insecurity is unacceptable, and we have taken action to strengthen and sustain the financial wellness of our employee community," said Dan Schulman, president and CEO, PayPal. "I am thrilled to welcome more leading companies to our coalition and our shared mission. Together, at a critical time in the economic recovery, we will work to make significant progress on improving the financial health and resilience of workers across the nation."
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%, making significant progress to reaching its target of 20% for all employees globally.
"If we are going to deliver on the promise of stakeholder capitalism, 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 Martin Whittaker, CEO, JUST Capital. "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 value."
Participants in the initiative will have access to quarterly webinars highlighting company best practices, resources on how to develop and deploy financial wellness assessments, and private roundtable conversations with C-suite leaders. 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 who are executing assessments. 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 American 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.
Companies interested in joining the Worker Financial Wellness Initiative can visit https://justcapital.com/reports/worker-financial-wellness-initiative/.
Statements from Cohort Companies Joining the Initiative
"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 Brian Niccol, chairman & CEO, Chipotle. "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 whole."
"At Chobani, we've always put our people first, and that includes strengthening the financial health of our employees and their families," said Hamdi Ulukaya, founder and CEO, Chobani. "We want to ensure no one is left behind as true financial wellness is more than just pay so we are taking steps to better understand our employees and their financial concerns. Chobani is proud to join the Worker Financial Wellness Initiative, providing the tools our employees need to navigate finances, improve their quality of life and achieve their dreams."
"It's no secret that it is getting harder to recruit and retain talent at all levels, and especially with hourly employees," said Jon Schlossberg, co-founder and executive chairman, Even. "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."
"Our company's purpose is to make lives better by solving financial challenges – including those facing our employees," says Rob Falzon, vice chair of Prudential Financial. "For over a decade we have surveyed our employees to better understand their financial health and inform our strategy for advancing their financial resiliency. The Workers Financial Wellness Initiative offers us the opportunity to share our insights with like-minded business leaders who are investing in talent to sustain their competitiveness, improving the financial condition of their workforces, and helping to build the financial resiliency of millions of American workers."
"Employees are the cornerstone of any growth business," said Hans Vestberg, chairman & CEO, Verizon. "As one of our four key stakeholders, investing in our V Team and their financial well-being is critical to our future."
Statements from Initiative Support Organizations
"Organizations spend millions on employee benefits, but most are not yet measuring the financial health impact of those offerings and programs on employees' financial lives," said Jennifer Tescher, president and CEO, Financial Health Network. "What gets measured, gets managed so we're thrilled that Chipotle, Chobani, Even, Prudential Financial, and Verizon have committed to collecting the data that will help them truly understand and improve the financial health of their workforce."
"In my research, I found that achieving operational excellence requires having a stable, capable and motivated workforce," said Zeynep Ton, president of Good Jobs Institute and Professor of Practice at MIT Sloan School of Management. "Companies can't get there without offering financial security. Employees can't focus on the job and be productive when they are constantly thinking about making ends meet. Companies can't attract and retain talent when pay is too low. We are excited to be part of this initiative to build a community of practice around worker financial health."
PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering more than 375 million consumer and merchant accounts in more than 200 markets to join and thrive in the global economy. For more information, visit paypal.com.
About JUST Capital
The mission of JUST Capital, an independent nonprofit, is to build an economy that works for all Americans by helping companies improve how they serve all their stakeholders – workers, customers, communities, the environment, and shareholders. We believe that business and markets can and must be a greater force for good, and by shifting the resources of the $19 trillion private sector, we can address systemic issues at scale, including income inequality and lack of opportunity. Guided by the priorities of the public, our research, rankings, indexes, and data-driven tools help measure and improve corporate performance in the stakeholder economy. To learn more about how data-driven insights are creating a more just future for capitalism, visit www.JUSTCapital.com.
About the Financial Health Network
The Financial Health Network is the leading authority on financial health. We are a trusted resource for business leaders, policymakers and innovators united in a mission to improve the financial health of their customers, employees and communities. Through research, advisory services, measurement tools, and opportunities for cross-sector collaboration, we advance awareness, understanding, and proven best practices in support of improved financial health for all. For more on the Financial Health Network, go to www.finhealthnetwork.org.
About Good Jobs Institute
The mission of the nonprofit Good Jobs Institute is to help companies thrive by creating good jobs and to redefine what it means to run a successful business. Millions of Americans are stuck in bad jobs with poverty-level wages, unpredictable schedules, and few opportunities for growth, meaning, or dignity. By making better operational choices and investing in their employees, a system outlined in GJI President Zeynep Ton's book The Good Jobs Strategy, companies can create good jobs that can build stronger companies and communities. The Good Jobs Institute builds partnerships with companies looking to implement a Good Jobs system and creates tools and resources to inspire and guide any organization that wants to offer good jobs. To learn more about the Good Jobs Strategy and access free tools and resources, visit www.goodjobsinstitute.org.
SOURCE PayPal Holdings, Inc.