Today, national nonprofit Commonwealth announced the launch of “Benefits for the Future,” a new initiative designed to improve the financial well-being of workers earning low to moderate incomes (LMI), which disproportionately include Black, Latinx, and women-led households. With support from JPMorganChase, Commonwealth is actively engaging with forward-thinking employers nationally and across targeted local markets over the next three years to pilot and scale innovative employer benefits programs to improve the financial health of 2.5 million workers nationally.
Benefits providers and large employers with significant employee bases earning LMI, or less than 80% of the area median family income, who are interested in implementing enhanced workplace benefits programs are invited to participate. Beginning in Chicago, IL and Columbus, OH, Commonwealth will work with employers and benefits providers to design, test and scale innovative workplace savings, debt reduction and wealth-building strategies that can help improve employee financial health, while delivering positive business outcomes such as increased worker productivity, engagement and retention. Over the course of three years, Commonwealth and the cohorts will develop strategies that empower workers to navigate the spectrum of financial health, from resilience to wealth. Commonwealth will also apply the insights and impact generated from year one to future phases, including expanding the initiative to additional local markets.
The initiative will also build an evidence base and amplify insights to improve the design and implementation of employer benefits, policies, and practices, with the goal of helping workplace programs drive greater financial well-being for employees at scale. Employers can learn more about the initiative and how to get involved here.
Financial Health Challenge for American Workers
Two-thirds of Americans are not financially healthy, making it difficult to manage unexpected expenses or save for the future. This vulnerability can spill over into the workplace; financially stressed employees are nearly five times as likely to say that personal finance issues have been a distraction at work, leading to increased absences, lower productivity, higher turnover, and negative physical and mental health consequences. This costs companies—and the economy—up to $183 billion per year in lost productivity and expenses.
The impact of workplace benefits solutions, such as workplace savings, financial coaching, and retirement plans on individual financial health has demonstrated the critical role employers play in building financial security and wealth beyond just wages. Yet, fewer than one-third of workers have access to workplace benefits that would help them manage critical financial needs. Through this work, Commonwealth aims to drive innovation in workplace benefits programs to improve the financial health of American workers and their families, while helping companies recruit and retain an engaged and productive workforce.
“Our years-long efforts around emergency savings as a vital employee benefit demonstrates the pivotal role employers can play in fostering financial resilience for their employees earning low to moderate incomes,” says Timothy Flacke, Co-Founder and Chief Executive Officer of Commonwealth. “With this ambitious, collaborative undertaking, we will build on the continued impact and influence of this important work, address key elements of financial vulnerability, and ultimately build support for long-term systemic changes in the workplace that reduce employee financial stress and generate demonstrable business value for employers.”
JPMorganChase’s Support for Employee Financial Health
This initiative is the latest development in JPMorganChase’s holistic efforts to improve financial health outcomes for employees – both within the firm and with employers across the country. JPMorganChase is leveraging its own business practices, philanthropic capital, insights, and expertise to help drive financial health outcomes for more Americans, helping them manage their financial lives and plan for the future.
“Workplace financial well-being programs are an important tool that can help people improve their financial health and build wealth in the long term. At JPMorganChase, we recognize the value of investing in employee benefits programs, and the impact it can have on employee financial health,“ said Sharad Ganesh, Chief Product Officer, Workplace Solutions at JPMorganChase. “Through this collaboration with Commonwealth, we’re excited to drive greater workplace innovation and help scale what works.”
About Commonwealth
Commonwealth is a national nonprofit building financial security and opportunity for financially vulnerable people through innovation and partnerships. Black, Latinx, and women-led households disproportionately experience financial insecurity due in large part to longstanding, systemic racism and gender discrimination. Addressing these issues is critical to Commonwealth’s work of making wealth possible for all. For nearly two decades, Commonwealth has designed effective innovations, products, and policies enabling over 2 million people to save nearly $8 billion. Commonwealth understands that broad changes require market players to act. That’s why we collaborate with consumers, the financial services industry, employers, policymakers, and mission-driven organizations. The solutions we build are grounded in real life, based on our deep understanding of people who are financially vulnerable and how businesses can best serve them. To learn more, visit us at www.buildcommonwealth.org.
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