Empowering workforces with financial security
12 April 2024
In an era where the global workforce faces unprecedented challenges, fostering financial well-being among employees has become more critical than ever.
Championed by PayPal and JUST Capital, The Worker Financial Wellness Initiative has emerged as a beacon of innovation, addressing the needs of the modern workforce with a commitment to people-centred progress.
At a 100% Human at Work gathering in New York City, Alison Omens, President at JUST Capital and Tyler Spalding, Senior Director of Corporate Affairs & Global Head of Social Innovation at PayPal, discussed why the initiative is so important and how it has changed PayPal’s approach to financial wellness and employee care.
PayPal’s financial wellness journey started in 2018 after carrying out a survey covering several topics, including financial health, and being shocked to learn that two-thirds of respondents reported being periodically out of funds between pay periods. PayPal took stock of the responses and adjusted their employment model and processes, with the overarching goal of achieving 20% Net Disposable Income (NDI) for each employee. Adjustments included lowering the cost of healthcare benefits, granting stock awards, reviewing, and raising wages, and introducing financial counselling services.
According to Tyler, one of the key strengths of The Worker Financial Wellness Initiative lies in its comprehensive approach.
“By fostering partnerships between employers, financial institutions, and other stakeholders, the initiative seeks to create a supportive ecosystem for workers. This collaboration is essential in addressing the challenges people face in managing their finances, from budgeting and saving, to accessing affordable credit.”
Alison Omens, President at JUST Capital and Tyler Spalding, Senior Director of Corporate Affairs & Global Head of Social Innovation at PayPal present at a 100% Human at Work gathering in New York | 100% Human at Work
At the heart of this initiative is the recognition that financial well-being extends beyond the paycheque. The initiative therefore encompasses various aspects of an individual's financial life, including savings, debt management, and access to affordable financial products. By championing these causes, The Worker Financial Wellness Initiative is not merely a short-term solution, but a transformative force that can positively impact the lives of workers and their families for years to come.
“The financial health of an individual directly influences their overall well-being, and a financially stable workforce is not only more productive, but also more engaged and satisfied.”
PayPal’s commitment to the initiative has resulted in a reduced number of employees running out of funds between pay-days and the organisation achieving a 26% minimum NDI for employees globally.
Alison Omens, President at JUST Capital and Tyler Spalding, Senior Director of Corporate Affairs & Global Head of Social Innovation at PayPal present at a 100% Human at Work gathering in New York | 100% Human at Work | 100% Human at Work
Both Tyler and Alison concluded their session by encouraging all companies to ask important questions about the wellbeing of their own workers, stressing that every business should make a concerted effort to understand whether their workers are experiencing financial security, noting that without it, an employee’s ability to make ends meet, save for emergencies, receive accessible benefits, and plan for the future are all in jeopardy.
Financial wellness is not a one-size-fits-all concept and the programme tailors its strategies to meet the diverse needs of different industries and demographics. This approach ensures that the benefits of financial wellness are accessible to all, fostering a culture of equity within the workplace.
Initiatives such as this one have the potential to transform workplaces into environments where employees thrive not only professionally but also personally. Together, let us champion financial wellness and create a future where every worker can achieve their full potential.