How Louisville Metro Government Strengthened Workforce Stability Through Financial Wellness

Background

Louisville Metro Government is the consolidated city-county government that serves Louisville, Ky., and the surrounding Jefferson County area. It was formed in 2003 when the city of Louisville and Jefferson County governments merged to streamline operations and better coordinate public services. Louisville Metro Government oversees a wide range of responsibilities including public safety, economic development, public health, infrastructure, and community services for more than 770,000 residents. 

As an employer, Louisville Metro Government manages thousands of employees across various departments, such as Public Works, Health & Wellness, and Metro Parks, making employee support programs and financial wellness benefits an important part of its workforce strategy.

Overview of the Situation: Financial Stress Undermines Workforce Stability and Engagement

The rising cost of living and limited access to affordable credit were two factors weighing heavily on Louisville Metro Government employees. Many were struggling with managing their finances, dealing with financial stress, which in turn affected their overall well-being and other work-related challenges including: 

• Decreased job satisfaction and engagement; 
• Impacts to productivity and retention; 
• Increased absenteeism, and a higher churn rate; and 
• Additional recruitment and training costs. 

The Solution: Enabling Employees to Focus on What Matters 

Purchasing Power began its partnership with Louisville Metro Government in 2019, marking the start of an innovative collaboration aimed at helping city employees gain access to essential products and services through affordable payroll-deduction purchasing. 

The timing of this partnership proved particularly significant, as the COVID-19 pandemic emerged shortly thereafter, creating unforeseen financial challenges for many households. Through Purchasing Power’s program, Louisville Metro Government employees were able to access the items they needed, ranging from technology and home essentials to health and wellness products, without resorting to high-interest credit or taking on new debt. 

What began as a proactive employee benefit quickly became a vital financial wellness resource during one of the most uncertain periods in recent history.

The absence of credit checks, and the ability to make fixed-term installment payments through payroll deduction proved helpful to employees during the pandemic. Top products purchased during the 2020-2021 time period included necessities such as electronics, computers, and furniture. 

The Results

Following the implementation of Purchasing Power, employees reported feeling more secure and satisfied with their financial situation, leading to:  

• Louisville Metro Government has seen a measurable impact on its retention, with employees using Purchasing Power being 5.09% more likely to stay vs. 13.06% than those who do not use the program. Many employees have also expressed appreciation for the program’s role in helping them manage their finances.  
• Purchasing Power and Louisville Metro Government have worked together to ensure that employees who need it the most stay aware of the program, and now 11.43% of the highest-benefit population use the program. 
• Louisville Metro Government employees who have used the program say they were 99% less likely to borrow from their retirement savings.

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