diversity and inclusion Archives

4 Benefits to Support Working Women

by Amirah Ford | May 18, 2022 | Blog

4 benefits to support working women. Female employees face unique hurdles in the post-COVID workforce. These 4 benefits can help support working women.

The COVID-19 pandemic led to an unprecedented number of women exiting the workforce. Academics and employers alike have coined the term “she-cession” to highlight this exodus, particularly women with young children

There are two key drivers behind this phenomenon, according to an International Monetary Fund (IMF) report. One driver is women work in occupations and industries that were disproportionately affected by COVID-related job losses. Driver two is, school closures forced women to choose between caregiving and their career.

Here are 4 ways organizations can support working women through this difficult period.

1. Support working women with on-site childcare or subsidies.

Amid school closures and limited daycare options, data shows that the burden of childcare has had detrimental effects on women’s employment. This is largely because societal expectations position women as the primary caregiver, even if that comes at the expense of their job. According to an IMF report, the burden of childcare accounts for 45% of the increase in the employment gap between men and women.

By offering childcare benefits like on-site daycare or subsidies, companies can help support women as both employees and working moms without the stress and costs of childcare. In fact, childcare benefits show that your company is a family-friendly employer, which can go a long way in attracting and retaining top talent.

2. Consider menstrual leave as an added health benefit.

Menstruating employees may experience menstrual health issues that can impede work performance, such as period pain and menopause symptoms. With a focus on equity and employee inclusion, companies are starting to incorporate menstrual leave into employee benefit packages.

Menstrual leave would allow employees to take time off for menstrual or menopausal symptoms, in addition to their regular vacation and sick leave. This allows employees to recover without the pressures of 24/7 productivity. Moreover, it helps foster inclusivity within the workplace and increase company-employee trust.

3. Focus on financial empowerment to support working women.

Across different indicators of financial wellness, women tend to report a lower level of financial wellness compared to men. Women employees have less access to financial advice compared to men, according to a Morgan Stanley survey, and they’re less likely to express a need for financial advice to their employers.

To promote financial wellbeing, specifically women’s financial empowerment, companies can invest in financial wellness programs and tailor them to the needs of working women. From loan calculators to money coaching, financial wellness resources can help equip women with the necessary tools to meet their personal finance goals (e.g., planning for college or learning about stock investments). Moreover, this can help address financial gender gaps, like wealth and access to advice.

4. Invest in accessible breastfeeding resources.

Transitioning back to the workplace is often difficult, and it even more challenging for breastfeeding parents. Studies have shown that breastfeeding has benefits for both parent and baby; however, most work environments don’t adequately support breastfeeding employees. This is one of many reasons why many women feel forced to choose between their jobs and caregiving.

Companies can extend support by offering breastfeeding resources. A simple way to start is by providing reasonable and protected break time for nursing employees to pump their breast milk. Some companies have even invested in breast milk delivery services, so moms can send home milk even on work travel. Regardless of the solution, it is important that company policy is implemented to protect the rights of breastfeeding employees and ensure that they don’t receive formal or informal penalties.

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Best Money Moves is a financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As a comprehensive financial wellbeing solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial wellbeing. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age.

Whether it be college planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. Our dedicated resources, partner offerings and 700+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

Closing the Gender Retirement Gap: How Financial Wellness Can Help

by Amirah Ford | Mar 28, 2022 | Blog

Closing the gender retirement gap: How financial wellness can help. Female employees still face workplace disparity when it comes to retirement planning. Here’s what employers can do to close the gender retirement gap.

Despite progress toward gender equity in the workplace, women still face disparities in retirement preparedness. Men have about 40% more income than women during retirement, according to the OECD, and this trend isn’t limited to the U.S. In fact, nearly every retirement system in the world suffers from the gender retirement gap.

Find out how the gender retirement gap affects your employees, and how financial wellness and other strategies can help level the playing field.

What is the gender retirement gap?

The gender retirement gap refers to the difference in retirement preparedness between men and women — it largely stems from the gender wage gap. According to data from the Center for American Progress, white women earn only 79 cents for each $1 earned by white men. Race furthers this disparity, with Black and brown women earning only 60 cents.Preparing for retirement takes years of saving. So, lower wages earned for an entire career compound into significant differences in retirement preparedness.

How to fix the gender retirement gap:

Employers can help bridge the gender retirement gap; however, doing so requires dedication to employee financial wellness and equity.

While there is no fix-all solution, here’s 3 ways to help join the gender retirement gap:

1. Extend flexibility and family leave to parents of all genders

Women are more associated with time away from the office, especially when it comes to childrearing and the home. Under federal law, employees are only guaranteed 12 workweeks of unpaid family medical leave; however, the loss of income can be detrimental to household finances.

With little federal guidance, employees must depend on their employers’ leave policy.

Parental leave policies typically give women substantially more time off than men, and for most women, their leave is unpaid. Less than 25% of employees receive paid parental leave, according to BLS data, and they typically receive only a percentage of their original paycheck.

When thinking about family leave policies, consider birthing and non-birthing parents and how each may need support. Some companies allow flexible or hybrid work hours, which allow working moms to gradually re-enter the workforce. Others offer family leave of at least six weeks to both, so it’s easier to balance and share home duties.

2. Address career differentials by gender to avoid wage gaps

Since women take on more part-time and unpaid work than men, overtime, this accumulates to women spending less time in the workforce than men. On average, women spend nine fewer years in the workforce, which can hurt women’s pay and promotional opportunities. Less money now means even less during retirement.

Pension plans often require a minimum salary or hours worked for pension payouts. This lessens retirement security for low earners and part-time workers, who are disproportionately women.

Take an honest, critical look at your company and see how you may overlook employees on leave during promotions and bonuses. This can help create equal opportunities for men and women to advance their careers and pay — which may mean reforming employee skills matrices to be more inclusive of those who take leave. Employees should never feel penalized or professionally stagnated for taking time off.

3. Offer employee financial wellness resources and education

Women, on average, are less financially literate than men. When quizzed on personal finance, 21% of women exhibited a relatively low level of financial literacy, compared to 15% of men, according to the TIAA Institute. And when looking at specific financial topics, like investing, the financial literacy gap only widens. Gaps in financial knowledge, such as these, can enlarge the gender retirement gap.

Researchers also think the gap could be explained by women spending more income on the home (e.g., groceries, daycare and cleaning) than they do on retirement or themselves.

Nonetheless, as a solution, experts at Mercer have advocated for financial wellness to help close the gender retirement gap. Through financial wellness programs, women can receive personalized money coaching and other tools to increase their overall financial preparedness.

A major perk of financial wellness programs is that their personalization helps employees of all income brackets and ages. From fresh post-grads, to even those close to retirement, all can benefit from financial wellness resources and guidance — they are to help people achieve their financial goals, while dialing down financial stress.

Need a financial wellness solution? Try Best Money Moves!

Best Money Moves can help your employees address their financial stress and become prepared for retirement, regardless of their stage in life or previous money habits. Best Money Moves offers personalized financial wellness resources and education, focused on solving your employees’ pain points. The program uses artificial intelligence and a human-centered design to measure employee financial stress and then dial it down with personalized solutions. Our budgeting tools, personal finance guidance and more helps employees make more informed financial decisions and reduce their overall stress.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

DEI & Financial Wellness: Bridging the Retirement Race Gap

by Amirah Ford | Feb 22, 2022 | Blog

DEI & Financial Wellness: Bridging the retirement race gap. Learn how the retirement race gap affects your workforce, and how your company can prevent retirement insecurity by addressing it head-on.

According to a report by Morgan Stanley, white retirees have seven times the retirement savings of Black retirees, and five times the retirement savings of Latinx retirees, at work. Employers can help bridge the race gap. Start with a focus on employee financial wellness and equity.

What is the retirement race gap?

The retirement race gap is the disparity in retirement preparedness between Black Americans and Americans of color, and their white counterparts.

The retirement gap is fueled by inequality in the workplace

Black and Latinx employees are paid 26 to 39 cents less for every dollar that white employees make. However, when you factor in gender and race, Black and Latinx women are the least prepared and secure for retirement. For each $1 earned by white men, Latinx and Black women make 57 and 64 cents, respectively.

The racial wage gap often leads to the retirement race gap because earning less over one’s entire career stifles growth and security into retirement. Companies can address these disparities by taking a deeper look at their own equity and compensation practices.

How to close the retirement race gap, while improving financial wellness and DEI

Research from T. Rowe Price suggests that the workplace is where most employees look for advice for their lifetime financial goals, and this is equal across races. However, the level of financial stress and support differs across races, and the trend continues well into retirement. Companies can support employees’ financial goals and disrupt inequality by addressing the retirement race gap. Moreover, doing so prioritizes employee financial wellness with a DEI approach.

1. Set fair, equitable hiring practices and promotion opportunities

Whether it be name bias or stereotyping, hiring discrimination helps concentrate people of color into jobs and industries less likely to offer retirement benefits. In such industries — accommodation, food and waste — less than 40% of workers are offered retirement benefits, according to Dr. Nari Rhee from UC Berkeley.

Companies can help close the retirement race gap by offering unconscious bias training and analyzing how it affects the hiring process. Some employers have taken it a step further and require applicants of color to be interviewed for all internal and external positions.

2. Host company incentives, like match contributions, to encourage benefits use

Events, contests and webinars can be an easy way to encourage employees and teach them about 401(k) tax benefits. A leading incentive that enhances employee engagement and loyalty is a match contribution program. Employees often see match contributions as an investment in themselves and their financial futures. And knowing retirement funds will be matched, employees are increasingly motivated to save.

3. Add financial wellness programs and education to employee benefits

Employees have different levels and causes of financial stress, so naturally, they each have different financial goals. Financial wellness programs can offer personalized help to address employees’ most pressing financial stress. Whether through 1:1 coaching and detailed calculators, financial wellness programs can help employees develop financial literacy and confidence, as well as money management skills.

4. Address the retirement race gap head-on and use 401(k) auto-enrollment to increase participation

If you already offer retirement benefits, consider auto-enrollment for all employees. Studies show that auto-enrollment substantially increases employee participation because employees are unlikely to opt out. Once enrolled, employees will likely make an effort to educate themselves on 401(k)s and contribute, and employers can facilitate such learning.

5. Track progress and revisit company goals annually

Closing the retirement race gap will not happen overnight; however, with continuous work and dedication, companies can curtail the wealth disparity. Keep track of company progress and engage employees for feedback — see how new initiatives work, and what old practices may need revisiting. It’s important to check in annually to take stock of progress made and opportunities for change.

Looking for a financial wellness solution? Consider Best Money Moves.

Best Money Moves can help your employees address their financial stress and become prepared for retirement, regardless of their stage in life or previous money habits. Best Money Moves offers personalized financial wellness resources and education, focused on solving your employees’ pain points. The program uses artificial intelligence and a human-centered design to measure employee financial stress and then dial it down with personalized solutions. Our budgeting tools, personal finance guidance and more help employees make more informed financial decisions and reduce their overall stress.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

How to Promote Diversity and Inclusion in the Workplace

by LizStevens | Jun 16, 2020 | Blog

How to promote diversity and inclusion in the workplace. New research on diversity and inclusion initiatives and how they can lead to higher profitability.

The U.S. Supreme Court made a historic ruling this week when they ruled that Title VII protections extend to LGBTQ employees.

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, national origin — and now sexual orientation and gender identity.

“In Title VII, Congress adopted broad language making it illegal for an employer to rely on an employee’s sex when deciding to fire that employee,” Justice Neil M. Gorsuch wrote for the majority. “We do not hesitate to recognize today a necessary consequence of that legislative choice: An employer who fires an individual merely for being gay or transgender defies the law.”

The landmark ruling, ongoing protests against systemic racism and the increasing importance of brand accountability to employees and consumers alike all call for employers to make diversity and inclusion initiatives a priority.

How to Promote Diversity and Inclusion in the Workplace

A new report by McKinsey & Company “Diversity Wins: How Inclusion Matters” identifies actions and practices that companies can take to build towards more diverse representation and foster a more inclusive workplace:

1. Adopt a Systemic, Business-Led Approach to Diversity and Inclusion.

- Increase diverse representation, particularly in leadership and critical roles.
- Strengthen leadership and accountability for delivering on diversity and inclusion goals.

2. Take Bold Steps to Strengthen Inclusion.

- Enable equality of opportunity through fairness and transparency.
- Promote openness, tackling bias and discrimination.
- Foster belonging through support for multivariate diversity.

The report expands on each point with different strategies companies can put in place. For example, when it comes to promoting openness and tackling discrimination, McKinsey & Company notes that companies who have met diversity and inclusion goals have zero-tolerance policies for discriminatory behaviors and have actively built the ability of both managers and junior staff to identify, surface and address microaggressions.

What Are the Benefits of Diversity and Inclusion Initiatives?

According to McKinsey & Company, the business case for diversity and inclusion is stronger than ever. They found that companies in the top quartile of gender diversity on executive teams were 25 percent more likely to experience above-average profitability than peer companies in the fourth quartile. Similarly, in the case of ethnic and cultural diversity, companies in the top quartile outperformed those in the fourth by 36 percent in terms of profitability.

They’ve also identified a performance penalty for companies that have stalled diversity and inclusion efforts. Companies that fall in the fourth quartile of both gender and ethnic diversity are 27 percent more likely to underperform on profitability than all other companies they included in their data set.

Diversity and inclusion initiatives can help companies better recruit and retain employees, increase job satisfaction and as the new report by McKinsey & Company identifies, it can lead to outperforming industry peers in profitability.

Building Office Culture with Diversity and Inclusion

by LizStevens | Jun 25, 2019 | Blog

Building office culture with diversity and inclusion. Employers are working to improve office culture and research by Deloitte can help them close the gap between values and practices.

A better office culture starts with diversity and inclusion but more than 60 percent of marginalized groups working for companies that focus on those values still feel pressured to “cover” their identities to fit in at work, according to research by Deloitte. Organizational expectations to “cover” lead these employees to perceive a lack of opportunities within the company, which results in their decreased commitment, negatively impacting job satisfaction and retention.

There are four common ways marginalized groups make efforts to conceal their identities in the workplace. Understanding how employees “cover” and how it impacts their relationship with the organizations they work for is essential for employers focused on improving office culture and bolstering diversity and inclusion efforts.

How Employees Cover at Work to Fit into Office Culture

Deloitte explores “covering” at work across the four axes defined by Kenji Yoshino in 2006:

Appearance-based covering involves altering one’s self-representation to blend into mainstream office culture. This can include changing one’s grooming, attire and mannerisms. A black respondent shared, “I went through a period two years ago where I had a bad reaction to the chemical straightener I used in my hair and had to stop. It was so uncomfortable wearing my natural hair to work that I resorted to wearing weaves, which were very costly and did more damage to my hair. However, I felt that the weave was more acceptable than wearing my natural hair. I also hated that when I wore my natural hair it always seems to be the subject of conversation as if that single feature defined who I am as a person.”
Affiliation-based covering happens when employees avoid behaviors commonly associated with their identity to negate stereotypes. A woman respondent shared, “I was coached to not mention family commitments (including daycare pickup, for which I leave half an hour early, but check in remotely at night) in conversations with executive management, because the individual frowns on flexible work arrangements.”
Advocacy-based covering concerns how much employees defend the group they identify with at work. An LGBTQIA+ respondent shared, “I didn’t feel I could protest when the person put in charge of diversity for our group was in fact an extremely vocal homophobe.”
Association-based covering occurs when employees avoid contact with other group members at work. A respondent with cancer shared, “I don’t associate with cancer groups, because I don’t want to draw attention to my medical status, disability, or flexible arrangements. People tend to look at me like I’m dying when they find out I have cancer, they avoid giving me longer term or higher-profile projects. Mostly I think they do this to be nice, because they assume I can’t handle it.”

How to Improve Office Culture with Diversity and Inclusion Efforts

Deloitte acknowledges in their report, “Some forms of covering are absolutely justifiable. To join a group is to surrender some degree of individual expression in the name of common expression,” and quotes a respondent who said their appearance-based covering actually increased their commitment to their workplace.

The issue is then identifying which covering demands are proper or improper, and Deloitte developed the “Uncovering Talent” model to help companies close the gap between values and practices, which involves:

Reflecting on current instances of covering.
Diagnosing the incidence, impact and drivers of covering by gathering qualitative and quantitative data.
Analyzing covering behaviors relative to stated corporate values.
Identifying leadership and cultural solutions.

It is possible for efforts to improve office culture, diversity and inclusion to succeed. Nearly 20 percent of respondents stated that they have “uncovered in a way that has led to success” both for them and for their organization.