By Talent Canada Staff
Company unveils sweeping financial health program for staff
By Talent Canada Staff
Workers at PayPal can now be paid on demand, as they earn their wages, rather than waiting for a traditional payday.
The company has partnered with Even, an on-demand pay platform that allows the workers to be paid early, automatically budget and have full visibility into their earnings through a mobile app.
“Over the past year, we’ve made significant investments to strengthen the financial health of our workforce,” says Dan Schulman, president and CEO, PayPal. “We’ve made substantial progress to increase the net disposable income of all our employees, and our work with Even will help drive further improvements. Together, we’ll help employees safely navigate cash flow challenges, stay on budget, build financial resilience and reach long-term savings goals.”
PayPal hourly, entry-level employees were struggling
PayPal launched its employee financial wellness initiative after conducting an assessment in 2018 that examined the financial wellness of its hourly and entry-level workers.
The company found that despite market pay alignment, many employees were still struggling to pay their bills each month.
In response to those findings, PayPal took action to address these issues with the goal of increasing its hourly and entry-level employees’ net disposable income (NDI) to 20 percent. Net disposable income is the calculation of the financial amount left after paying taxes and necessary living expenses.
Financial health program
Last year, the San Jose, Calif.-based company rolled out a comprehensive financial health program that included lowering the cost of healthcare benefits, making every employee a stockholder, raising wages and offering new financial learning and counseling programs.
By the beginning of 2021 – one full year after instituting these substantive changes to improve employees’ financial well-being – PayPal estimates that the minimum NDI among hourly and entry-level workers will be about 16 percent, up from as low as four percent in some locations.
“Dan Schulman and PayPal are ahead of the curve,” said Jon Schlossberg, CEO, Even. “Dan is showing the country – and other CEOs – that investing in the financial health and resilience of your people isn’t just the right thing to do. It’s the right thing to do for business.”