Giving Compass’ Take:
• B the Change profiles Rhino Food, which has implemented a program that allows employees to borrow $1,000 from their local credit union if they need it, then having deductions go into a savings account.
• This emphasizes the importance of instituting more financial security for lower- and middle-income workers: It’s good for people and business.
Financial insecurity plagues 138 million American workers and isn’t solely a concern for low-wage employees. Sixty-seven percent of middle-class workers earning between $50,000 and $100,000 would have difficulty coming up with $1,000 to cover an unexpected bill.
This financial insecurity creates stress, which negatively impacts the health of American workers and businesses. Employee financial stress can cost a business $5,000 in productivity per employee, per year. Revenue aside, financial stress is attributed to 60 to 80 percent of workplace accidents, 40 percent of employee turnover and 75 to 90 percent of health and welfare issues …
Businesses can lead the way by showing it’s possible to be profitable while paying a living wage and offering stronger parental leave, and they can advocate for public policies that would make it easier for all businesses to do so. And thanks to the Income Advance Program pioneered by Ted Castle, founder and CEO of Certified B Corporation Rhino Foods, it is now easier for companies to adopt other business practices that reduce financial insecurity and stress while also increasing worker productivity and loyalty.
Inspired by a United Way training session, Castle and his HR team worked with the local North Country Federal Credit Union and the United Way of Northwest Vermont to develop the Rhino Foods Income Advance Program. Here’s how it works: Any Rhino employee in good standing can walk into HR and, no questions asked, get a loan the same day for up to $1,000 from their local credit union. Participating employees get the money they need immediately and pay off their loans in small, weekly payroll deductions (usually $50 per week). In the process, they build credit … Once the loan is paid off, employees can choose to continue having the automatic deductions go directly into their savings account.
Read the full article about creating financial stability for American workers by Jay Coen Gilbert at B the Change.
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