Companies helping workers build wealth find strategic benefits along the way

From matching 401(k)s to building college pipelines, business leaders say doing good by employees can be good for business, too.

Economic mobility demands that companies go beyond wages and benefits to support long-term employee success, with transparency, intention and equity, panelists said at the Federal Reserve Bank of Philadelphia’s Economic Mobility Summit earlier this month.

Structure varies from company to company, but shares a common goal of promoting equity and stability through workplace investment. In short: Mobility isn’t just a policy issue — it’s a leadership one, according to the panelists. 

“When you succeed, you have a responsibility to help the community,” said William Polacek, CEO of manufacturing firm JWF Industries. “And when you help the community, you get a return as well.” 

Polacek spoke from personal experience. His company has long prioritized workforce development, partnering with local high schools to create early job pipelines and matching up to 10% of employees’ 401(k)s. 

At Crayola, however, it’s about culture and connection. President and CEO Peter Ruggiero said Crayola works with United Way of the Lehigh Valley and Lafayette College to help children see what’s possible, from literacy programs to a chance to visit a college campus.

Crayola’s challenge, Ruggiero said, is attracting and retaining workers. Most hires start as temps and grow into full-time roles, supported by tuition assistance for college or graduate degrees. Incentives are tied to clear, achievable goals. 

“Imagine their loyalty to the brand and the company,” he said. “Imagine their knowledge of how we manufacture, our culture and how we operate.” 

Economic mobility support at every level

Other businesses, like Amalgamated Bank, take a structural approach to address all levels of the economic mobility pipeline, according to Priscilla Sims Brown, the bank’s president and CEO.

The company’s commitment to economic mobility starts with its own employees. For example, implementing a $15 minimum wage in 2015, with continued increases since. Stock options and benefit plans round out the package. 

The institution partners with organizations aligned with its values that also recognize the intersectionality of the wealth gap and wealth building, Brown said. 

“If you’re thinking about [the wealth gap], you can’t think about it in a vacuum,” she said. “There’s health disparities which contribute to the wealth gap. There’s educational barriers that contribute to the wealth gap.”  

Incentivising companies to do good

For Damien Dwin, founder and CEO of private investment firm Lafayette Square, providing economic incentives to companies is key. Companies that provide services to employees, such as healthcare and retirement benefits, will get an interest rate step down, for example. 

Access to company data, like how much money employees make and how many are enrolled in benefits, can help Dwin come up with a personalized strategy to help companies reduce turnover, he said. 

“If we can get turnover down, if we can get healthcare and retirement benefits up, workers will not only be more productive,” Dwin said. “Society will be better off, and to us, that is the essence of economic mobility.” 

Efforts to keep employees engaged require consistent attention, but being transparent about the goals of the company can help, Ruggiero said. 

“Transparency about what the objectives are for the organization,” he said. “To set targets against that, and to incentivize all of your employees to chase that.”