Just Capital announces cooperation with PayPal
The two companies plan to work together in order to increase employee wellbeing.
PayPal Holding AG (Nasdaq: PYPL) and JUST Capital, in partnership with the Good Jobs Institute and the Financial Health Network, have launched a new initiative to make employee financial security and health a C-suite priority. The initiative will help equip companies with the right resources and tools to enable them to take action and ensure workers are not in need of money. The organizations have asked the CEOs of the largest US companies to conduct an employee financial wellbeing assessment as an important step in understanding their employees' financial vulnerabilities. It will also help identify ways to develop long-term resilience.
Prior to the pandemic, around 50% of Russell 1000 company employees did not make enough money to support a family, according to a survey by JUST Capital. Even having one partner working part-time is not enough, and the pandemic has exacerbated these economic inequalities. Martin Whittaker, the CEO of JUST Capital, said markets need to support building a just society. For over 40 years wages have stagnated due to the inclusion of labor as a cost to be managed and fear of retaliation from Wall Street. Martin said that we cannot deliver on the promise of stakeholder capitalism until investors and business leaders realize that employees are a valuable asset. It is therefore necessary to invest in their well-being in order to achieve long-term financial success.
Research has shown that key business outcomes such as customer satisfaction, productivity and employee turnover tend to improve when employees are financially secure. This implies that the financial well-being of workers should be a priority and companies must incorporate this into any business assessment and future planning. PayPal leadership's contribution to the initiative builds on PayPal's innovative work to improve the financial well-being of its employees. PayPal plans to increase its employees' net disposable income by 20% in 2018 after evaluating the financial wellbeing of entry-level and hourly workers.