Centering Employee Financial Health for More Equitable Workplaces

Imagine a workplace where every employee, regardless of their background, is supported and empowered to succeed. The path companies are taking to get here is core to their identity and success. It is also always evolving. To get there, there is no shortage of advice and “top trends” to help guide Diversity, Equity, Inclusion, and Belonging (DEIB) efforts. The most interesting themes for this year (and beyond) are that this is shared work across HR and DEIB teams and that tools to support employee financial health should be at its core. 

If 2022 taught us that supporting the financial health of your employees is key to reinforcing company culture and values, then 2023 challenges us to recognize that it’s just as important (if not more so) to embedding a true sense of belonging at your company. Once an employer can “acknowledge the inequities and biases that some employees, specifically disenfranchised and marginalized groups, may experience”, it’s a no-brainer that employee financial health offerings, like employee relief funds, are uniquely positioned to foster diverse and inclusive workforces in 2023.

“Not merely focused on diversity numbers, DEIB is evolving into what HR was initially built to provide: a safe space for employees. More companies are partnering with DEIB and HR to lead their people — from the C-suite to entry-level employees — with an inclusive approach. An inclusive culture for employees of all backgrounds creates a feeling of emotional safety. Employees need to feel comfortable trusting their teams and sharing their true identities.”

HR.com, “2023 Trends: The Future Of Diversity, Equity, Inclusion, And Belonging”

How Canary’s emergency grant solution supports diverse workforces

Last month, we released our 2nd annual Impact Report, How Emergency Relief Funds Support a Modern, Diverse Workforce. In it, we take a close look at the usage data behind grants given to workers across our employer-sponsored emergency relief programs. We noticed that grantees were disproportionately people of color and women. This tracks all too well to what we already know about financial insecurity in America – – that BIPOC and women are less likely than their white or male counterparts to weather financial shocks without support.

Inspired by founder and CEO, Rachel Schneider’s research into the financial lives of Americans and the resulting book, Canary built a solution knowing employers can and should be part of an individuals financial safety net. It’s become an invaluable way to support people through uncertain times. In a year clouded with economic worries and anxieties over job security, it is crucial to offer support to workers no matter their background or presumed financial footing.

Specifically, an employee relief fund solution maps to each principle that drives a company’s DEIB efforts: 

• Diversity: By providing financial wellness resources to all employees, regardless of their background or income level, companies can promote a culture of inclusion and show that they value the financial well-being of all employees.
• Equity: Our 3rd-party grand managers ensure reviewing and distributing emergency grants is more equitable. Many companies attempt to run their own emergency grant programs, requiring HR departments to be involved in the decision making.
• Inclusivity: We encourage employers to design a grant program to include eligible emergencies (like natural disasters, death in the family, home issues, domestic issues, etc.) and set a grant limit that is inclusive of the issues their employee population might face.
• Belonging: Knowing they have access to emergency grants when times get tough reassures employees that the company cares and is there for them beyond their paycheck.

3 ways employee financial health offerings support a more inclusive workplace

1. Proactively provide resources for under-resourced worker communities People of color and women often have less access to financial resources and opportunities – in fact, our latest Impact Report found that 52% of all grantees last year identified as BIPOC, more than half (29%) of that identified as Black. And 75% of all grantees identified as women, far greater than their national representation (50.2%). This makes it imperative for companies committed to DEIB initiatives to provide access to financial assistance to help diverse employee populations bridge the gap in emergencies.  Providing access to emergency grants helps employees from underrepresented groups manage financial challenges,  improve their financial stability
2. Meaningfully address financial stress in your workplace Financial stress can negatively impact an employee’s mental and physical health, which can lead to decreased productivity and increased absenteeism. Providing access to emergency grants (which, unlike early 401k withdrawals, don’t require repayment), employees can better manage their finances and reduce stress, improving their overall well-being and engagement in the workplace.
3. Free up the mental bandwidth to focus on their future Access to tools to support employee financial health not only relieves the day-to-day stresses of your workers, but it also allows them to instead focus on their future. When an employee knows they have resources to cover their short-term financial needs, they can put energy toward planning for long-term goals like career development, buying a home, or saving for retirement. 

As Human Resources leaders continue moving toward a more people-centered approach and DEIB efforts run with people at its core, it’s time to merge that work to build caring for their own into company culture and policy. Providing access to emergency financial resources can be an integral step in ensuring a truly inclusive, equitable approach.

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Check out our latest Impact Report to learn how current Grant Circle programs are supporting modern, diverse workforces.

If you’re interested in learning how an employee relief fund can help your workers, schedule a demo with our team.