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Paying attention to employees
In the case of Paypal, the business model drive its mission. But, while fulfilling their mission, they missed something going on inside their company. Although they ensured to pay above-market salaries and offered generous benefits, it was inadequate for some people.
Knowing that their employees were struggling, they decided to take steps to support the financial security and health of their staff.
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Employee Financial Wellness Initiative
The four main elements to the Employee Financial Wellness Initiative.
- Reducing the cost of healthcare.
- Reviewing and raising wages where appropriate.
- Making everyone, irrespective of level or position, a shareholder and long-term beneficiary of the collective success as a company.
- Offering a long-term financial education and planning program.
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Promising results
Short term impact of the changes implemented because of the Employee Financial Wellness Initiative are:
- Fewer employees report they are running out of funds between pay periods.
- An increase in healthcare benefit enrollment and employees upgrading their plans.
- A higher rate of 401(k) and employee stock purchase plan enrollment.
It will be a while before the real impact of these changes is known. The next generation of business leaders should take action and prioritize and invest in their employees.
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