TED Talks Daily How we can actually pay people enough -- with Paypal CEO Dan Schulman | TED Business
Dec 30, 2020
Dan Schulman, President and CEO of PayPal, advocates for a significant shift in capitalism focused on fair wages. He introduces the concept of Net Disposable Income, a new metric aimed at ensuring employees can invest in their futures. Schulman discusses how improving financial health leads to better productivity and morale. Beyond just adequate pay, he emphasizes the need for tailored compensation strategies, including transparent salary processes and flexible work arrangements, to truly support employee wellness.
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Net Disposable Income (NDI)
- PayPal realized that paying market rates wasn't enough for some employees' financial wellness.
- They developed a new metric called Net Disposable Income (NDI) to measure true financial health.
PayPal's Internal Study
- A PayPal study revealed that 60% of their operations personnel struggled financially, despite being paid at or above market rate.
- This led to the development of NDI and a goal to raise it to 20% for these employees.
Prioritize Employee Financial Health
- Evaluate employee financial health and consider NDI as a key metric.
- Invest in employee well-being, as it benefits both employees and the company long-term.