The average Diversity, Equity, and Inclusion (DEI) practice focuses on hiring a diverse workforce and providing employment resources to make sure everyone feels supported and included. However, most employees aren’t getting the help they need in terms of their finances. Three in four Americans are stressed and spend 9.2 hours on average at work a week dealing with their finances.
Furthermore, financial insecurity disproportionately affects underrepresented people in the workplace which means many of your employees could be at a financial disadvantage today. Due to this, it’s a part of the employer’s job to help create a path for underrepresented communities towards wealth. DEI initiatives need to focus on generating lasting wealth for underrepresented communities because it will lead to long-term equality.
Current Equity Gaps in Employee Finances
It’s no shock that there is a wealth gap in our country. Although women have made great progress in the workplace, they still make less income, have less wealth, and face greater economic instability compared to men.
Single women in 2020 earned 82 cents of wealth for every dollar of wealth owned by a single man. In 2018, women owned 32 cents for every dollar of wealth owned by their male counterparts. This gap is also widened by racial economic inequality, meaning the gap is even greater for men and women of color. For example, according to a 2019 Survey of Consumer Finances, white families have 8x more wealth than black families.
Women also earn less than men of the same race or ethnicity. A median annual earnings report from the National Community Reinvestment Coalition stated that:
- Asian Americans had the most significant gender inequality with a $17,000 annual disparity between men and women (Men: $78,000 Women: $61,000)
- White men make approximately $59,000 a year compared to white women who make $49,000 a year
- Hispanic men make $44,000 compared to Hispanic women make $38,000
- Between African American women and men, it’s the same at $42,000 over 52 weeks, but that is still lower than white women and men
There are also disparities when it comes to student loan debt. People in underrepresented communities on average face more student loan debt. Black students owe on average 12.5% more than they borrowed in student loans while White students owe less than 12% of what they borrowed four years after graduation.
How This Affects The Workplace
These inequalities impact the overall health of your employees, which ultimately affects the health of your business. Most workplaces today include diverse workforces who have varying levels of education surrounding money and financial education. Even if salaries in your company are equitable, your employees may not have the resources or education to utilize their income in the right ways.
It’s important for employers to be creating a path toward lasting wealth for their employees in underrepresented communities. One of the first steps towards this is by including a financial wellness service in your benefits package. A financial wellness service is free to the employee and therefore making financial education and literacy accessible regardless of wealth status.
What Your Employees Get:
1. Increase in Financial Literacy and Education
Financial illiteracy causes stress in the workplace. By providing a financial wellness service, your employees get access to financial guides, resources, articles, and videos, all to help educate them to make smart financial decisions
2. Decrease in Financial Stress
75% of people reported that their financial situation causes them stress in their day-to-day life. It’s also reported that financial stress disproportionately affects minority groups, according to a Forbes Magazine article, so although people experience financial stress for all sorts of reasons, it’s more than likely your employees' stress is linked to their socioeconomic status, gender, race, etc. A financial wellness service can relieve that stress by providing expert guidance and one-on-one support.
3. One-on-One Personal Financial Guidance
Our expert guides provide one-on-one coaching for your employees and their unique, confidential situations. They provide guidance and meet you where you’re at with an empathetic approach. They know everyone’s financial situation is different and are there to lend an ear and offer guidance toward the next right step.
How Employers Benefit From Financial Wellness Offerings:
1. Improved Retention Rates
Many businesses struggle with retention rates, especially since the beginning of the COVID-19 pandemic. One way to help your retention numbers is by providing a free financial service to your employees because it shows them you’re invested in their overall well-being.
2. Happier Employees through Company Equity
When employees feel supported in all aspects of their life by their employer, they are more likely to give satisfying reviews and represent the company well, which will help their overall growth.
3. Overall Stronger Employee Performance
By providing a financial wellness service that’s free to your employees, you get employees that are willing to work harder because they recognize their employer cares about their overall well-being.
Closing The Gap in Your Workplace
To help level the playing field, a financial wellness service is a perfect place to start because it’s free to your employees. Your Money Line is here to help your company bridge the wealth gap by providing expert guides who meet your employees where they’re at, offering a listening ear, and creating a plan to help them feel confident in their financial journey because everyone and their needs are different.
Through our personalized, confidential, and empathetic financial guidance, our Financial Guides provide employees with a one-on-one, individualized experience. Additionally, your team will get access to a 24/7 dashboard with hundreds of articles and courses for all life stages, providing employees with all the resources necessary to live a healthy financial life. Your Money Line delivers proven results for employees on their distinct financial journeys.