Investment in worker resilience

In a future where workers are on the move and industries are in transition, the need to invest in worker resilience is clear. The COVID-19 pandemic further highlighted the importance of worker mental health and wellbeing, as well as the role that financial wellbeing plays in overall health and resilience. Many Americans are unprepared for unexpected events such as job loss or a health shock, with 1 in 4 survey respondents saying they would be unable to pay an unexpected $2,000 bill within a month, according to research from the Stanford Center on Longevity and George Washington University. Over half the UK population now have attributes associated with vulnerability, such as poor health and low financial resilience, according to a survey by the Financial Conduct Authority.

Large corporations play a vital role in building worker resilience through good quality jobs with fair pay and support for mental health and wellbeing. But small businesses facing their own financial difficulties may not have the means to provide such support, and increasing numbers of workers now operate in the gig economy largely without the protections given to employees. Employers and governments can help workers be more resilient in turbulent times by investing in workers’ capacity to manage their mental and financial wellbeing.

Recognizing the importance of financial resilience as a critical part of overall wellbeing, many corporates now offer employees financial education programs. The Worker Financial Wellness Initiative – a collaboration between PayPal, JUST Capital, the Financial Health Network, the Just Jobs Institute, Verizon and other corporate partners – aims to make workers' financial security and health a top priority for the C-suite and investors. ​ American Express has partnered with TransUnion and VantageScore to offer a publicly accessible financial education series called GamePlan. Beyond financial literacy, programs and apps are available to workers to help them manage fluctuations in income and build financial resilience. The Trezeo app aims to help independent workers better manage the peaks and lows in their income flow and avoid the need for expensive payday loans.

Businesses have also been investing in employee wellbeing programs. Unilever’s Wellbeing Framework focuses on culture, leadership, prevention and support to create a workplace that supports employees’ mental health. The Microsoft CARES program offers employees access to counselors and coaches on topics ranging from mental health and diet to finances.

For workers outside of structured corporate programs, a range of digital apps have been developed with the aim of helping workers to take care of their own wellbeing, such as Happify, meQuilibrium, Headspace, Big Health and My Strength. Mastercard is collaborating with Stride to enable gig platforms to offer benefits to workers using their platforms. The Mastercard Center for Inclusive Growth is also collaborating with the Aspen Institute on Benefits 21, an initiative to design an integrated system of benefits that promotes financial security and dignity for all U.S. workers, regardless of the nature of their employment.  

Building resilience early can help workers start their working lives with more confidence. In the UK, Young Minds works with schools to help young people develop the tools to look after their mental health. In the U.S., Inspiring Minds offers a mindfulness-based resilience program for schools. ​

Some governments are pushing for a more systemic intervention to provide baseline security for workers in insecure jobs. Experiments with Universal Basic Income have been run in Finland and California.

Within your own organization:

• Have a continuous, open conversation with employees on mental health, encouraging positive habit formation (e.g. around meditation, exercise, sleep, boundary setting)​, and place mental health within teams as a clear manager responsibility.
• Train leaders on how to create an environment of psychological safety for their teams and hold leaders accountable for maintaining that environment.
• Include financial literacy programs as part of a comprehensive employee wellbeing strategy.

With others:

• Work with education institutions to develop workplace resilience programs to prepare young people for the transition into the world of work.
• Set expectations that companies in your supply chain should invest in the resilience of vulnerable workers.
• Work with shareholders and investors to strengthen worker wellbeing and financial literacy within existing ESG standards.
• Support cross-sector initiatives to develop financial security mechanisms that support all kinds of workers to boost worker health, wellbeing and resilience.