Corporate America and the U.S. Savings Crisis
Creating a “healthy, wealthy, and productive” workforce
SVDX recently held a small group session in partnership with Commonwealth to discuss what a K-shaped recovery means for corporate competitiveness and why now is probably the time to care more about worker wealth and health.
The very precarious financial position of large portions of the workforce (even the “bottom half” of the Silicon Valley workforce) is not much disputed by experts. But the discussion as to the humanitarian and corporate costs for this lack of financial wellbeing among a large swath of corporate workers is inconsistent, at best. The possible K-shaped recovery has brought certain long-term trends into greater focus and provides a chance to evaluate corporate (and social) strategy around these issues. Our recent session examined the current data as to the recent and often long standing financial challenges experienced by many (and sometimes the majority) of workplace employees and discussed the social as well as corporate implications of this trend. The session discussed the various aspects of worker financial health, where experts might agree and disagree, and what can be done. Ultimately, we were looking at actionable steps boards might take to ensure a “healthy, wealthy, and productive” workforce.
The session contributors included Mary Dent (former CEO of Green Dot Bank), Stephanie Dobson (Portfolio Manager at Putnum Investments), Peter Tufano (Peter Moores Dean at Saïd Business School, University of Oxford), and Timothy Flacke (Executive Director at Commonwealth).
Commonwealth provided important data around the topic. To access the material, please click here.
Additionally here are Commonwealth’s suggestion of two immediate opportunities for firms to act on worker financial security:
Blackrock's Emergency Savings Initiative is a cross-sector program with a mission to help people living on low- to moderate-incomes gain access to and increase usage of proven savings strategies and tools. BlackRock has partnered with industry experts Common Cents Lab, Commonwealth, and the Financial Health Network to address the savings crisis and fuel the future of savings innovation.
Autosave for Emergencies - Commonwealth recently drove policy guidance at the CFPB to catalyze Autosave programs for financially innovative employers. Specifically, the guidance opens the door for employers to offer automatic enrollment into short-term emergency savings accounts for their employees. Employers can learn more about the opportunity here.
For additional information, please contact:
Timothy Flacke