How Employers Can Reduce the Financial Burden of COVID-19

The unprecedented economic impact of COVID-19 has had severe implications for financially vulnerable workers—many of whom are increasingly ... Skiptocontent HomeBlogHowEmployersCanReducetheFinancialBurdenofCOVID-19 March27,2020Commonwealth TheunprecedentedeconomicimpactofCOVID-19hashadsevereimplicationsforfinanciallyvulnerableworkers—manyofwhomareincreasinglylookingtotheiremployersforsupport.AtCommonwealth,we’veheardfromemployers,financialinstitutions,fintechs,andotherslookingforguidanceandresourcestohelpthemintheirefforts.  OnThursday,March26,wehostedourfirstofaseriesofwebinars—“HowEmployersCanReducetheFinancialBurdenofCOVID-19”—todiscusstheseissuesandsharepotentialsolutionstotheuniqueandunprecedentedchallengesemployersarefacingtoday.Ourpanelists,MarielBeasley,Principal,CommonCentsLab,TimothyFlacke,Co-FounderandExecutiveDirector,Commonwealth,andJohnThompson,ChiefProgramOfficer,FinancialHealthNetwork—allpartnersinBlackRock’sEmergencySavingsInitiative—collectivelybroughtdecadesofexperienceinresearch,innovation,behavioralscience,andpolicyinfinancialsecurityandopportunity.ModeratedbyCommonwealthDirectorBrianGilmore,thegroupsharedkeyinsightsandsurfacedpracticalstrategiesinresponsetoawiderangeofemployerquestions.Attendeescamefromavarietyofindustriesandbusinesssizes,includingfinancialinstitutions,nonprofits,andemployersfromavarietyofsectors. Aswementionedinthewebinar,COVID-19isnotimpactingallbusinessesorindustriesequally,andthereisnosingleone-size-fits-allsolution.Somebusinesses,likegrocerystores,arehiringorincreasinghourstomeetsurgedemands,whilemanyothers,likeairlinesandrestaurants,havehadtohaltservices,cutbackhours,orlayoffworkers.Fortunately,betweenfederalprograms,grassrootsandcharitableefforts,andeffortsemployerscantakeinternally,therearemanywaystoaddressshort-andlong-termchallengesbeingfeltmostacutelybylow-to-moderateincomeworkers. Together,thepanelistsidentifiedmanywaysemployerscansupporttheirfinanciallyvulnerableworkersbybothprovidingimmediatereliefandhelpingthemweatherthelongerstorm. ThreeKeyTakeawaysforEmployers 1.HelpEmployeesBestManagetheirCashAssistanceWindfall Employers“haveauniqueunderstandingofwhowithin[their]employeesmayqualifytoreceivecashassistance”fromthefederalgovernment,andcan“proactivelyreachouttofolksinpersonalizedways,”saidMarielBeasley.Informingemployeesonhowtheywillreceivethemoneyiftheydoqualify,aswellasadvisingthemtosetasidetimewiththeirhouseholdtoplantheuseofthecheck,goesalongwayforemployeeswhohavealotontheirplates.AccordingtoMariel,behavioraleconomicshasshownthatoperatingunderfinancialscarcitycancausedifficultyconcentratingandmakingdecisionsequivalenttothatexperiencedafterlosingafullnightofsleep.Supportingemployeesinmakingfinancialdecisionsinthistimeofincreasedscarcitycanalleviatesomeofthatburden. 2.BoostSavingsforEmployeesandMakeSavingasEasyasPossible Thepanelistsagreedthatsavingsarestillimportant,evennow.Thekeyis“helpingpeopletotakeactionandfocusingonthebehaviorandnotthesize,”saidTimothyFlacke.Buildingevenasmallliquidfundcanprovideamuch-neededcushion.Tothatend,seedingsavingsaccountsorofferinginnovativefeatureslikeprize-linkedsavingsgivesdirectfinancialsupporttoemployees,motivatesthemtostartandcontinuesaving,andprovidesimmeasurablepeaceofmind. 3.SupportYourHardest-HitEmployeesbyOfferingHardshipFunds InastudyCommonwealthco-authoredwithTheAspenInstitute,IlluminatingtheHiddenSafetyNet,wefoundthattheseprogramsarenolongerniche:largecorporationssuchasLevi’sareofferingaccesstohardshipfundstotheirworkers.Hardshipfundsthatare“rapid,respectful,andfair,”saidTimothyFlacke,providequicksupporttoemployeesfacingfinancialemergencies.AsJohnThompsonnoted,FinancialHealthNetwork“hasseenchangestohumanresourcespoliciesthattiltmoretowardstrustingtheemployee”duringthiscrisis,andprovidinghardshipfundsisagreatwaytodemonstrateandbuildtrustwithemployees.  Withthesestepsandnewprogramsbeingofferedinthefaceofthiscrisis,employershaveseveralevidence-backedstepstobringtotheirworkers.Welookforwardtoseeinghowemployerscollaborateanddevelopnew,creativewaystosupporttheirmostvulnerableemployeesthroughthistime. Commonwealthiscontinuingtomonitorthecoronavirusoutbreak’simpactonfinancialsecurity.Tostayinformed,checkoutourCOVID-19pageforthelatestnews,insightsandresources;youcanalsosubscribetoournewslettertoreceiveweeklyupdatesandlearnaboutourupcomingCOVID-19webinarseries. WatchtheRecording Postnavigation PreviousPilotingEmployeeEmergencySavingsNextHowCanMindsetsSupportFinancialSecurity? Getthefirstlookatouroriginal,cutting-edgeresearch Firstname Lastname Email Organizationoptional Jobtitleoptional SignUpforCommonwealthNews