Avangrid Joins JUST Capital and PayPal’s Worker Financial Wellness Initiative
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Insights
An organization's commitment to enhancing employee benefits can have a substantial impact on its ability to attract and retain top talent, which is crucial in competitive sectors like sustainable energy. Avangrid's participation in The Worker Financial Wellness Initiative underscores a strategic investment in its workforce, which may lead to improved employee satisfaction and productivity. These factors are particularly important for companies in the energy sector, where the war for talent can directly affect innovation and growth. A well-supported workforce is often more resilient and adaptable, qualities that are essential in an industry facing rapid technological and regulatory changes. This move might also enhance Avangrid's employer brand, potentially reducing recruitment costs and lowering employee turnover rates, which are significant metrics for investors evaluating company performance.
Avangrid's initiative aligns with broader ESG (Environmental, Social and Governance) criteria that are increasingly influencing investor decisions. The 'Social' component of ESG is highlighted here, as the company's actions reflect a commitment to social capital, particularly in terms of employee welfare and corporate culture. For stakeholders, this signals a forward-thinking management approach that recognizes the importance of human capital in driving sustainable business practices. In the long term, companies that effectively integrate ESG principles tend to have a lower risk profile and potentially better financial performance, which may attract socially responsible investors and could lead to a more favorable perception in the stock market.
From a financial perspective, Avangrid's investment in employee financial health could translate into tangible benefits such as reduced absenteeism and increased engagement, potentially leading to higher productivity and, consequently, better financial outcomes. However, it is important to monitor the cost implications of such comprehensive benefits packages. While these programs may entail significant upfront costs, they should be evaluated against the backdrop of potential ROI in terms of reduced turnover and enhanced employee performance. Investors should look for evidence of these programs' effectiveness in future financial reporting, such as improvements in operating margins and reduced expenses related to employee turnover.
Company continues to prioritize employees’ financial security and health with its diverse benefits portfolio including leading 401(k) employer match, paid parental leave, and student loan repayment program
“We want to be a company that attracts top talent to build long-term careers,” said Pedro Azagra, Avangrid CEO. “We do this by not only helping our employees grow professionally, but also supporting their well-being. The Worker Financial Wellness Initiative will cement us as a benefits leader and help us continue to enhance our programs and resources.”
The Worker Financial Wellness Initiative was launched in 2020 and engages directly with corporate leaders to promote the business value of financial health investment and empower them to perform worker financial health evaluations. Today, the initiative includes companies such as Chipotle, Chobani, Even, Prudential Financial, Synchrony, and Verizon, representing one million American workers. Since joining the initiative, participating companies have expanded and enhanced benefits, increased wages, created new ownership opportunities, and more.
Joining this initiative builds upon Avangrid’s commitment to caring for its people by providing diverse, equitable, and inclusive benefits that focus on their total health—physical, emotional, mental, and financial. This includes providing a leading 401(k) employer match, paid parental leave, comprehensive employee assistance program (EAP), and fertility and family forming benefits. Avangrid has also continued to expand its holistic benefits package by recently launching new programs such as a student loan debt repayment benefit, an emergency savings program, and mandatory financial training.
“Now is the right time to take our benefits to the next level by focusing on individual wellness,” said Kyra Patterson, chief human resources officer at Avangrid. “By leveraging data, we can take a more granular and personalized approach to the benefits we offer to take care of our employees. The Worker Financial Wellness Initiative will help us take this next step by leveraging research, tools, and a diverse network of subject matter experts dedicated to optimizing employee health and well-being outcomes.”
Tolu Lawrence, Chief Impact Officer at JUST Capital, an independent nonprofit dedicated to demonstrating how just business – defined by the priorities of the American public – is better business, noted that Avangrid’s participation in this insightful network of executives is monumental.
“Our polling of the nation’s public shows time and again that Americans of all backgrounds want CEOs to prioritize investing in workers,” said Lawrence. “And our research shows that companies that prioritize the well-being of their workers out-perform those that don't. Avangrid is on a journey that will not only deeply impact the lives of its workers, but also has the potential to inform the trajectory of the energy industry at large. We look forward to welcoming them into the network and collaborating with our partners to drive impact with Avangrid and for its workers.”
Sarah Kalloch, executive director of The Good Jobs Institute echoed the sentiment, saying, “Research has shown how meaningful investment in employees can create productive, engaged, and motivated workforces that not only create better lives for workers, but also deliver real, sustained value for customers and shareholders. We are excited to support Avangrid on this journey.”
About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240306122838/en/
Media:
Sarah Warren, Avangrid
sarah.warren@avangrid.com
585-794-9253
Marguerite Ward, JUST Capital
mward@justcapital.com
Source: AVANGRID, Inc.
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