With all the uncertainty due to inflation and fears about recession, financial wellness benefits have become a top priority in the workplace. Creating a nurturing environment for your employees goes beyond offering a steady paycheck. It’s about cultivating financial wellness, and building a truly inclusive and supportive workplace where everyone has access to benefits to help them build financial security for today and tomorrow.
A recent infographic in BenefitsPRO indicated that 80% of employees believe that employers should play a role in supporting their financial wellness, according to Bank of America data cited in the infographic. Investing in financial wellness pays off. The same Bank of America study found that 84% of employers cite that financial wellness helps with retention, and 81% of employers said it helps attract higher-quality employees. Not to mention, employees who are financially stable are more engaged, productive, and focused.
Financial wellness benefits are also critical when it comes to helping bridge the inclusivity gap in the workplace, according to a recent Employee Benefit News article. However, it’s important to make sure your benefits aren’t unintentionally undermining your diversity, equity, and inclusion (DEI) strategy instead of creating equity and increasing financial security for all, the article’s authors noted.
So, how can employers take meaningful steps to combat systemic racism, particularly when it comes to offering equitable employee benefits? For starters, the EBN article stated, it can be helpful to ask tough questions, such as: “Are my benefits making a difference for ALL employees, not just those who are salaried or higher paid?” And “Are people of color using my currently provided financial benefits at a lower rate than other employee populations?”
It’s important to meet underrepresented employee populations where they are. Black and Brown people generally have lower levels of financial health, according to Employee Benefit News. They also struggle with higher instances of credit card debt, stress, and illness. This impacts their ability to show up as their best selves in the workplace. That’s why it’s important to make sure your benefits packages, including financial wellness programs, don’t inadvertently disadvantage certain groups. Offering benefits that encourage employees with means to save and invest excludes those who don’t. Use data-driven analysis to identify any disparities and work to correct them.
Studies show, for example, that traditional financial wellness programs don’t work for low-income employees, because they need real-world solutions they can implement when they need it most. Put another way, urging them to set money aside for a future they can’t envision isn’t likely to motivate them to change their financial behaviors.
“Financial wellness” for these populations may look vastly different, such as helping them improve their credit scores to qualify for better loan terms, providing them access to financial products that aren’t approved or priced based on a credit score, or guiding them through achievable savings and debt-reduction plans to start them on a path to better financial stability.
The journey to build a truly inclusive workplace is ongoing. By making sure financial wellness programs are equitably designed to serve all employees regardless of their financial situation, you have the power to make a profound impact. Your employees will thrive in an environment that values their financial stability and embraces their diverse backgrounds.
