Empower Retirement announced Thursday that it will not lay off any of its workers at any of its multiple locations for reasons related to the COVID-19 outbreak.
The Colorado-based company, which recently secured the naming rights to Mile High Stadium in Denver (now Empower Field at Mile High), has 6,200 employees and offices in the United States and India.
“Our business is both capital-intensive and labor-intensive,” Empower President and CEO Ed Murphy said. “A meaningful percent of our revenue goes up and down with the market every day. What does not change is the fact that we still have 40,000 institutions and 9.6 million customers that are relying on us.”
Layoffs would effectively mean a “degradation of service,” Murphy added, especially now with the level of coronavirus-driven call volume the company is experiencing.
“At its peak, we were running about two to two and a half times the normal volume,” he explained. “We typically take 15,000 to 18,000 calls a day. We are now taking anywhere between 30,000 and 45,000 calls a day. That’s leveled off somewhat, but we’re still seeing a tremendous amount of inquiries.”
Specific to the passing of the CARES Act, Empower has also seen a higher number of questions about loans and distributions than in the recent past.
“I believe that we need to be there for our customers at this time. And the only way to do that is to stay together, united and focused as an organization. If we do that well, we’ll come out the other side stronger and poised to do even better when the market returns to some degree of normalcy.”
Reducing anxiety
Trumpeting the company’s loyal employee base, he said he suspected concerns and anxiety among the workforce.
“They’re certainly seeing what’s happening around them with friends and family members perhaps being laid off. And to the extent that we can reassure them and reduce anxiety at a time when people are feeling it, then that’s a great thing to be able to do.”
The firm’s capital position allows for the no-layoff pledge, something he noted some companies can’t do.
“At the end of the day, it’s really simple,” Murphy concluded. “This is a people business and it’s all about your associates. I hope it also sends a powerful message to our customers that we’re committed to the long run.”