National nonprofit Commonwealth has unveiled “Benefits for the Future,” a new initiative aimed at enhancing the financial well-being of workers earning low to moderate incomes (LMI). Supported by JPMorganChase, the initiative targets Black, Latinx, and women-led households, groups that disproportionately fall into the LMI category. Over the next three years, Commonwealth plans to collaborate with forward-thinking employers nationwide to pilot and scale innovative benefits programs, ultimately impacting the financial health of 2.5 million workers.
Workplace benefits providers and major employers with significant LMI employee bases are encouraged to participate. Commonwealth is starting this initiative in Chicago, IL, and Columbus, OH, to design, test, and scale workplace savings, debt reduction, and wealth-building strategies. These efforts are anticipated to yield positive business outcomes such as increased worker productivity, engagement, and retention. Throughout this three-year period, Commonwealth aims to develop strategies that empower workers to navigate the entire spectrum of financial health, from resilience to wealth accumulation.
The initiative also aims to build an evidence base to improve the design and implementation of employer benefits, policies, and practices. Insights from the first year will inform future phases, including the expansion to additional local markets. Employers interested in participating can learn more about the initiative and how to get involved here.
Financial stress is a significant issue for American workers, with two-thirds of Americans struggling to maintain financial health. This stress often spills over into the workplace, making financially stressed employees nearly five times as likely to be distracted at work, leading to increased absences, lower productivity, and higher turnover. The resulting loss in productivity costs companies and the economy up to $183 billion per year.
While workplace benefits like savings plans, financial coaching, and retirement plans have shown to be effective in improving financial health, fewer than one-third of workers have access to such benefits. Commonwealth’s initiative seeks to innovate and expand workplace benefits programs, helping American workers and their families achieve better financial health while assisting companies in recruiting and retaining a productive workforce.
Timothy Flacke, Co-Founder and CEO of Commonwealth, emphasized the role of employers in fostering financial resilience for workers earning low to moderate incomes. “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,” Flacke stated.
JPMorganChase is also leveraging its business practices, philanthropic capital, and expertise to support the financial health outcomes for more Americans. Sharad Ganesh, Chief Product Officer, Workplace Solutions at JPMorganChase, highlighted the importance of workplace financial well-being programs in building long-term wealth. “Through this collaboration with Commonwealth, we’re excited to drive greater workplace innovation and help scale what works,” Ganesh said.
