Improving Financial Security for 2.5M Workers Earning LMI

Summary

In 2024, Commonwealth – with $7 million in support from JPMorganChase – committed to launch its Benefits for the Future initiative that will actively engage 12 forward-thinking employers in the United States by 2027. Across targeted local markets such as Columbus, Ohio and Chicago, Illinois, the initiative will pilot and scale innovative employer benefits programs emphasizing debt reduction, workplace savings, and wealth-building that will directly improve the financial health of 300,000 employees and indirectly impact 2.5 million workers nationally. This partnership-driven initiative particularly aims to build the financial well-being of workers earning low- to moderate-incomes (LMI) , which disproportionately include Black, Latinx, and women-led households. In addition to delivering impact for participating companies and their employees, this initiative will also build an evidence base and amplify insights that can help improve the design and implementation of employer benefits policies and practices, transforming the workplace into an engine that drives financial well-being at scale.

Approach

Commonwealth, with support from JPMorganChase, commits to actively engage forward-thinking employers nationally and across targeted local markets over the next three years to pilot and scale innovative employer benefits programs to directly improve the financial health of 300,000 workers, Beyond direct partnerships with at least 12 large national and place-based employers, Commonwealth will work to indirectly influence the practices of other employers, workplace benefit providers, and relevant policies through a mix of thought-leadership, inform-and-influence efforts, and targeted policy advocacy, which will translate to impact for 2.5 million workers nationally earning LMI.

Beyond national partnerships, Commonwealth will work with benefit providers and large employers with sizable workforces earning low or moderate-income (LMI) , beginning in Columbus, OH and Chicago, IL. The organization aims to design, test, and scale innovative debt reduction, workplace savings, and wealth-building strategies that can improve employee financial health while delivering positive business outcomes, such as increased worker productivity, engagement, and retention. Once insights and impact are gathered, Commonwealth will leverage learnings and data to implement solutions as part of a second phase, including new local markets.

In addition to delivering impact for these companies and their employees, this initiative will also build an evidence base and amplify insights that can help improve the design and implementation of employer benefits policies and practices, transforming the workplace into an engine that drives financial well-being at scale.

Commonwealth is a national nonprofit building financial security and opportunity for financially vulnerable people through innovation and partnerships. Black, Latinx, and women-led households disproportionately experience financial insecurity due in large part to longstanding, systemic racism and gender discrimination. For nearly two decades, Commonwealth has worked to make wealth possible for all, designing effective innovations, products, and policies enabling over 2 million people to save nearly $8 billion.

This initiative is the latest development in JPMorganChase’s holistic efforts to improve financial health outcomes for employees – both within the firm and with employers across the country.

Action Plan

In year 1, with the support of JPMorganChase, Commonwealth will develop partnership with at least four large employers, including a mix of national and place-based companies to implement workplace benefit interventions reaching hundreds of thousands of employees earning LMI. We will launch an advisory council to support the work, issue four thought-leadership briefs, and host one or more convenings

In year 2, Commonwealth will launch at least four additional employer partnerships to implement new workplace savings initiatives reaching hundreds of thousands of employees earning LMI, convene two additional events to share learnings, insights, and best practices, and issue four additional thought-leadership briefs to influence workplace benefits policy and practice

In year 3, Commonwealth will launch the final cohort of at least four employer partnerships to continue to implement new workplace financial benefits interventions, directly impacting at least 300,000 employees earning LMI over the course of the initiative, and indirectly impacting at least 2.5 million employees through changes to employer and workplace provider business practices and relevant policies. We will issue four additional thought-leadership briefs, and hold a final convening to share impacts and lessons learned as part of a capstone event

Background

Two-thirds of Americans are not financially healthy, making it difficult to manage unexpected expenses or save for the future. This vulnerability can spill over into the workplace; financially stressed employees are nearly five times as likely to say that personal finance issues have been a distraction at work, leading to increased absences, lower productivity, higher turnover, and negative physical and mental health consequences. This costs companies—and the economy—up to $183 billion per year in lost productivity and expenses.

The impact of workplace benefits solutions, such as workplace savings, financial coaching, and retirement plans on individual financial health has demonstrated the critical role employers play in building financial security and wealth beyond just wages. Yet, fewer than one-third of workers have access to workplace benefits that would help them manage critical financial needs.

Through “Benefits for the Future” – a collaborative initiative designed to improve the financial well-being of workers earning low to moderate incomes (LMI) , which disproportionately include Black, Latinx, and women-led households – national nonprofit Commonwealth, with support from financial leader JPMorganChase, aims to drive innovation in workplace benefits programs to improve the financial health of American workers and help companies recruit and retain an engaged and productive workforce.

Progress Update

Partnership Opportunities

Commonwealth is well-positioned to help our partners reach significant impact due to our unbiased approach, 20+ years of workplace benefits expertise, significant and measurable impact, and proven track record in conducting groundbreaking research. The organization applies data and insights from its research to inform pilots and demonstrations with firms that largely employ workers earning LMI. Implementing partners would be a great fit for Benefits for the Future if: You are a national employer and industry leader, or an employer based in Chicago, IL or Columbus, OH; you have over 20,000 U.S.-based employees who make under $75,000 per year; and your organization is committed and positioned to share insights, data, and findings with broader audiences through marketing opportunities and within your own high-quality network., By partnering with Commonwealth in the “Benefits for the Future” program, employers with large workforces earning low and moderate incomes (LMI) will have the opportunity to lean on Commonwealth’s breadth of knowledge and expertise as the cohorts design, test, and scale innovative workplace savings, debt reduction, and wealth-building strategies that improve employee financial health while delivering positive business outcomes, such as increased worker productivity and retention.