CMO & Head of People at BrightPlan, a Total Financial Wellness company.
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This past year challenged us in more ways than we could ever have imagined. In addition to adjusting to the new work reality, employees faced stress stemming from the worldwide health crisis and financial stress due to the economic fallout from the pandemic. All these factors put a spotlight on employee well-being and what companies can do to ensure the overall wellness of their employees from more than just a physical perspective, but also an emotional, mental and financial one.
Although we are now starting to see the light at the end of the tunnel thanks to vaccinations, the economic damage done to underrepresented groups may take years to mend. These employees have been disproportionately affected by job losses. More than 2.4 million women left the workforce – 46% of them Black and Hispanic even though they represent less than one-third of the total female workforce. Women are more vulnerable due to the burdens of caring for family members, and a larger share is employed in low-wage jobs, leading to steeper job losses than men. These numbers worsen the already large racial wealth gap in the country. According to the Federal Reserve, "white families have eight times the wealth of Black families and five times the wealth of Hispanic families."
Given the economic reality faced by employees from underrepresented backgrounds, employers have the opportunity to make a big impact by fostering a sense of financial security in their employee well-being and diversity, equity and inclusion (DEI) initiatives.
Inclusion Fuels Well-Being
Inclusion, although listed last, is the first element to focus on in the mix of diversity, equity and inclusion. An inclusive workplace is an environment that makes every individual feel respected and welcome. Many companies’ well-intentioned DEI efforts backfired because they neglected to foster a culture of inclusiveness first. Without inclusion, diversity cannot thrive.
Inclusion also plays an important role in employee engagement and well-being. You can’t have an engaged workforce without focusing on wellness, but you can’t have a wellness culture if you don’t foster inclusion and diversity. On a fundamental level, wellness is inclusiveness. True diversity, equity and inclusivity in the workplace are about recognizing each employee’s unique background and experience and supporting them in their well-being journey.
For underrepresented groups, inclusion in the workplace should focus on fostering a sense of financial security through equal pay, equal opportunity and access to benefits, tools and resources. Beyond access, employers need to also make accommodations to ensure that employees from underrepresented backgrounds utilize the resources available to them with confidence.
Inclusion And Financial Well-Being
Employee well-being refers to the physical, mental and financial well-being of your workforce. The pandemic motivated employers to double down on their employee wellness efforts, yet many are still missing the root cause of their employees’ stress. Finances are a top cause of stress for employees, negatively affecting their mental and physical well-being. This is especially true for employees from underrepresented backgrounds who have fewer resources to weather economic storms.
As employers seek to make their workplaces and employee wellness programs more inclusive, it’s important to focus on financial wellness and ensure that the programs offered are relevant and accessible to all employees. An inclusive workplace empowers employees to navigate their financial lives with confidence. This includes supporting their ability to overcome financial setbacks, such as reducing debt and saving for emergencies. Just as important, is providing practical knowledge about building credit, planning for retirement and growing wealth for future generations.
By focusing on inclusion and financial well-being, employers can enable employees from all social backgrounds to achieve financial safety and security for themselves and their families. I've said before that the incorporation of financial wellness into a company's overall strategy while being thoughtful with implementation, can help boost strong business outcomes. Financially well employees are likely to find themselves better able to contribute to an overall positive workplace experience. This leads to more productive and engaged employees.
Just as important beyond the world of work: Financially confident employees can create positive ripple effects for generations to come as they build wealth – often for the first time in their own families' histories.
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