The Effects of Employers on Poverty Intervention
This quarter, our employer-based services team set out to explore why different employer sites experienced higher levels of success in financial stability for their employees than others. For example, one of our employer partners experiences a 36% higher success rate than the average of all of our employer partners. We jumped into exploring client demographics, education background, household size, and financial statements.
In all of these variables, we only uncovered one noticeable difference: wages and debt. While clients at the above mentioned employer site start the program with the same savings as clients at other sites, they additionally start the program with much higher income and much higher debt. Their average salaries hover around $15/hour, while most clients at other sights hover around $10/hour.
Despite starting off with almost no savings and substantially more debt than other clients, clients at this site still achieve financial self-sufficiency more often and more quickly than other clients at other sites.
A Collaborative Effort
What may seem obvious but deserves a shoutout is that when employees are provided a just wage and opportunities for advancement, our clients don’t experience stagnation, they thrive. In places where workplace culture invests in and fosters the development of its workforce, big things are in store for the individuals who work there.
For our learnings, this reiterates that solving poverty is a collaborative endeavor. While independently we can help clients connect to resources, budget, and take ownership of their futures, the full potential of employer-based services is unlocked when our partners share in our efforts to achieve financial self-sufficiency for their employees.
Of course poverty is influenced by countless factors- personal finances, employment practices, public policy, local economy, and education funding just to name a few. But what our employment-based services has taught us is that external forces strongly influence client’s progression (or lack thereof). This means eradicating poverty will mean more than just doing our part, it will require holding others accountable to uphold the rights and dignity of workers.
Our employer-based services team provides on-site success coaching to improve the financial stability and well-being of workers.
Eradicating poverty and the rights and dignity of workers go hand-in-hand.
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