How employers can help financial wellness as corporate goals shift

In the wake of the recent Business Roundtable’s CEO pledge for corporations to work to benefit “all stakeholders” – not just shareholders, but also employees — here are some concrete ways employers can make saving easier and how some organizations have started taking steps to help their workers and customers not just get by but even thrive. This redefinition of corporate goals also reflects a growing trend for employers, retailers and other nontraditional actors to make financial wellness a priority.

corporate goals

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Commonwealth, a nonprofit working to bring innovations in financial security to workplaces and workers around the country, shares insights about employers who are:

  • providing easy access to savings opportunities, such as simple splits of direct deposits to savings accounts
  • making emergency funds accessible, such as same-day access to loans for up to $1000 for any emergency expense or even direct no-need-to-repay grants to workers
  • using proven-methods for increasing savings such as gamification to make it fun and exciting
  • adding 401K short-term savings “sidecars” so workers have a buffer to draw on when needed—before dipping into pretax, long-term retirement investments

Corporate goals and financial wellness

And retailers and financial institutions who are promoting savings deposits for customers through prize incentives; Commonwealth, Walmart and Green Dot Bank teamed up to create the first national, prize-linked savings program on a retailer’s prepaid card in the United States. Walmart customers moved more than $2 billion through the program’s virtual vault in just the first two years.

As Commonwealth executive director Timothy Flacke notes, “There’s growing recognition that financial security is not just an individual challenge but a beneficial business model where corporations and even retailers and other enterprises offer a truly significant role that benefits the individual but also their communities, their workplace and ultimately the economy as a whole.”




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver