Across the country, financially vulnerable workers are witnessing increases to their take-home pay as companies boost compensation and
jurisdictions raise statutory minimum wages. The Economic Policy Institute estimates that on January 1, 2018 alone, 4.5 million workers experienced wage increases due to minimum wage hikes.
Through pilot interventions and consumer research with hundreds of workers,Commonwealth has studied how wage hikes can be leveraged to maximize gains to worker financial security. We’ve found that raises represent a real opening to build financial security for workers through targeted employer strategies, an opportunity attractive to both workers and employers. Workers view raises as a chance to strengthen their financial situation and believe that employer strategies tying raises to financial security would make them better employees.
At the same time, our research has pointed to design features that would best set up a raise-centered financial security approach to be successful. Workers want to capitalize on raises to build financial security. With the right approach, employers can make doing so easy and compelling.