Webb Medical is a family-owned company and leader within the medical supply industry. Owner David Krupnick has seen firsthand the impact of financial stress on staff and the inadequacy of traditional financial benefits.
"As an employer, I started to see how financial hardship filters into productivity and absenteeism," said Krupnick. In some cases, an employee paying the minimum on their loan over the course of several years could find themselves in thousands of dollars of debt, due to compounding interest. Increasing stress made it harder for employees to focus and feel productive at work.
While many employers try to boost morale with "feel good" perks like free lunches and traditional benefits like 401(k) offerings, Krupnick questioned the true impact of these offerings. "When someone's trying to pay off debt, they just don’t see a 401(k) as a benefit of value."
By offering advances and financial education through Palolo, Webb Medical has established a culture of trust, in turn boosting tenure, morale, and financial resiliency for employees.
Individuals who had previously found themselves in financial stress have not only paid off their debt, but started saving for the future. Three employees saved enough to buy a house at a low interest rate, now paying less monthly than what they'd been paying when in debt.
"People have a hard time leaving a place that has their back," said Krupnick. Palolo's benefits are mutual, he says: by creating a desirable and supportive work environment, Palolo has allowed him to do good for his employees while also doing well for his business.
"The return on investment wasn't just better retention, but more productivity and less absenteeism, too. It’s good business because it costs so little."
Owner, Webb Medical