In 2019, PayPal employee Mark Parker, along with a group of other PayPal employees, was invited to meet with company executives to discuss his financial wellness. They asked him what more he’d like from PayPal as an employer to be more successful inside and outside of work.
Mark said that while he loved the company and appreciated his market-rate salary, he’d love a raise and more comprehensive benefits. Sometimes, to make ends meet, he gave his plasma in exchange for extra income.
Several months later, PayPal CEO Dan Schulman and his C-suite team rolled out a comprehensive financial wellness program. Mark’s life completely changed.
Mark is just one of the nearly 1 million employees represented through the Worker Financial Wellness Initiative which helps companies take steps like raising wages or expanding access to benefits to help bolster the financial health of their employees. To explore how those actions have impacted their lives and livelihoods, we set out to hear from the workers firsthand through a compelling new video series.
This is Mark’s story:
“I just feel taken care of. I feel like I have all of the support that I need,” Mark said. “I’m able to give more of my heart, more of my personality into my work. I think the way that PayPal has embraced me, I’m able to then embrace PayPal,” he said in the video.
To ensure PayPal was living its mission of financial inclusion internally, the company conducted an analysis of worker incomes compared to the cost of living, to arrive at a net disposable income calculation. After learning many employees were struggling to get by, Schulman rolled out the pioneering Worker Financial Wellness Initiative in late 2019.
The new worker benefits included pay raises, a reduction of healthcare costs by over 60%, personal finance education programs, stock options, and more.
Productivity and culture improved and now PayPal is helping other companies conduct their own worker assessments through the Worker Financial Wellness Initiative with JUST Capital, the Financial Health Network, and Good Jobs Institute.
Franz Paasche, senior vice president and chief corporate affairs officer at PayPal, said participating in the Initiative has bolstered the company’s financial success.
“Talented and committed employees are the greatest competitive advantage any company can have,” Paasche told JUST. “Research increasingly shows that investing in the financial health and security of employees has a positive impact on engagement, retention, productivity, innovation, culture and more. That is good for our customers and good for our shareholders.”
Mark’s experience represents that of thousands of PayPal employees. He’s now more productive at work, and also feels incredibly loyal.
“Financial wellness just means freedom to me. It really does,” he said. “Because PayPal’s truly got my best interest in mind, I wouldn’t look for another company.”
He feels personally grateful to Schulman and PayPal’s leadership.
“I mean, it truly is coming from him and I feel that this is personally gifted from Dan Schulman,” he said. “Thank you.”
Paasche agreed that Schulman’s leadership on the issue has changed not only the company, but helped shape the public conversation around supporting America’s workforce.
“Dan has led from the front in putting our employees first. Throughout his leadership at PayPal, he has been outspoken about the inequities in our economy and financial system that result in so many people and families feeling financially vulnerable,” Paasche said. “Dan’s leadership on employee financial wellness is consistent with his deep commitment to fulfilling PayPal’s mission.”
Paasche said he’s excited to continue to build the coalition of companies committed to advancing the financial wellness of their workforces.
“We are working to do our part to make the global financial system more affordable, efficient, safe, and inclusive for everyone,” he said. “By prioritizing our employees, we can better serve our customers and shareholders.”
Hear from other employees about the impact worker financial wellness programs have had on their lives:
The Worker Financial Wellness Initiative is a vibrant and growing community of business leaders dedicated to improving the financial health and security of their workers. The Initiative includes peer learning opportunities for C-Suite leaders; creating resources and events for HR and compensation professionals; providing direct assistance to companies on how to develop and deploy a Worker Financial Wellness Assessment, and use it to identify areas for improvement and immediate next steps; and public opportunities to celebrate corporate leadership.
To learn more about the Initiative and how you can join, click here.
After the COVID-19 pandemic exposed the caregiving crisis in the U.S., some progress was made to expand parental leave benefits, especially on the state level. Despite this, America still does not offer any federal law mandating paid parental leave, leaving companies to set their own standards.
Americans want leadership on this issue. A 2022 poll by JUST Capital found that 64% of Americans believe that it is necessary for companies to provide 12 weeks of paid leave for all parents. The reality is, only 23% of private industry workers had access to paid family leave through their employer in 2021, according to the Bureau of Labor Statistics.
Companies have an opportunity to not only generate outsized impact for workers, but also for their bottom line, and the economy at large. Paid parental leave contributes to higher retention, increased recruitment rates, and improved employee performance. When women don’t have access to leave, 30% of them will exit the workforce within a year of giving birth, according to one study.
To demonstrate leadership and meet the needs of their workers, companies can disclose the amount of leave they offer, ensure that the benefits apply to all workers regardless of gender, and then expand the amount of leave according to leading practice.
JUST Capital identified six companies prioritizing paid parental leave for their workers with the leading practice of offering 24 weeks or more of paid parental leave for both primary and secondary caregivers: HPE, S&P Global, Snowflake, Dropbox, Lululemon Athletica, and Zoom Video Communications. Read on below to explore the details of their disclosures and check out our report on paid parental leave data disclosure trends to see what industries are leading and lagging when it comes to paid leave policies and performance.
Ranked 1st in its industry and 7th overall
Computer Services company based in Houston, Texas
For the second year in a row, HPE makes our list of companies leading on paid parental leave. In addition to providing up to 26 weeks of paid leave for both primary and secondary caregivers, they also offer parental transition support programs, where new parents can work part time for up to 36 months to transition and ease back into work. HPE approaches benefits comprehensively to support workers holistically, through “physical health, mental, emotional and financial well-being, and social connections to community.”
Ranked 2nd in its industry and 19th overall
Commercial Support Services company based in New York, NY
S&P Global provides paid parental leave of 26 weeks for its workforce, including both full-time and part-time employees. This leave is available to “all S&P Global parents, regardless of gender” as soon as they are hired, meaning there is no waiting period or tenure requirement. S&P parents are also able to take the leave “within 12 months of the birth, adoption, surrogacy, or foster care placement of a child.”
Ranked 14th in its industry and 433rd overall
Computer Services company based in Bozeman, Montana
Snowflake discusses its paid parental leave policy within its broader benefits program. It provides 26 weeks of paid parental leave to employees, and in addition offers other fertility benefits and time off work. They tout “generous time-off and various leave plans for [workers] to rest, refuel, and sustain a great work-life balance,” which has been shown to lead to better retention and recruitment rates.
Ranked 14th in its industry and 184th overall
Software company based in San Francisco, California
Dropbox continues to be a leader on paid parental leave for the second year in a row, by providing employees with 24 weeks of paid parental leave for all employees. They also offer mental and physical wellness benefits to support parents as they navigate returning to work and adding to their family.
Ranked 3rd in its industry and 163rd overall
Clothing & Accessories company based in Vancouver, Canada
Lululemon has a motto when it comes to their benefits policies: “when life works, work works”. For the second year in a row, Lululemon is a leader on paid parental leave, providing paid leave of up to six months to global employees at all levels, which is particularly inclusive given they are the only retail store to make the list. They double-down on inclusivity by ensuring that leave is applicable to all parents and adoptions.
Ranked 17th in its industry and 200th overall
Software company based in San Jose, California
Zoom offers up to 24 weeks of paid parental leave to its full-time employees in the United States. As parents adjust to life with a new child, they also offer supportive benefits, including access to career re-entry coaching after returning to work following parental leave and a robust mental health benefit.
Representatives from Russell 1000 companies can now access their JUST Jobs Scorecard through our secure Corporate Portal to see how their company compares against their peers on paid parental leave and 20+ other data points utilizing our new threshold benchmarking analysis.
JUST Capital, in collaboration with partners, established the Corporate Care Network to advance the well-being of workers and demonstrate the long-term value of investment in workers. The Network is committed to driving increased access to care benefits, including paid leave and flexible work policies.
If you’re interested in learning more on how your company can become involved, please reach out to JUST Capital impact@justcapital.com.
