At Canary, we have spent the last week listening. We have heard the Human Resources community’s outrage, sadness, and disappointment upon the Society for Human Resources Management (SHRM’)s decision to remove a focus on equity from their work. What is clear is that whether they are SHRM members or not, the heart of HR — the leaders doing the day-to-day work — is still centered on creating a more equitable future for employees. SHRM’s announcement only encourages these leaders to push harder to amplify spaces and solutions that create and support a fairer workplace for all. At Canary, that is the good that we see in this conversation. To accomplish our mission and truly move the needle on improving employee financial well-being, two elements are invariably linked: 1) creating a stronger, more equitable safety net for everyone and 2) supporting people-centric leaders who insist that this is a non-negotiable in the workplace. In light of SHRM’s announcement, this link feels stronger than ever.
Above: A screenshot of Canary’s DEIB statement. Importantly, we acknowledge that beyond hiring with Diversity, Equity, Inclusion, and Belonging practices in mind, it is central to our work: “we believe strengthening individuals’ financial safety net is a crucial piece of advancing equity in the workplace and beyond”. Learn more about our mission here.
Investing in Employee Financial Security is Essential for More Equitable Workplaces
Today, most businesses are committed to creating diverse work communities that are inclusive of all individuals, regardless of gender, race, sexuality, or disability. An inevitable result is that workforces are more heterogeneous, with team members who often don’t come from the same socioeconomic background as each other. That means individuals in the same workplace are likely to have different safety nets around them regarding their ability to rely on friends and family or personal savings when they experience a financial challenge. We share data about this in our annual Canary Impact Report, documenting the extreme disparities in women and people of color requesting emergency financial help. See the below excerpt from our 2022 report, where we detail what we believe accounts for these differences.
More than half of all grantees (52%) are people of color. This is more than double the percentage of Americans who identify as non-white. This isn’t surprising. It is likely a result of the fact that, according to the Federal Reserve, “the average Black and Hispanic or Latino households earn about half as much as the average White household and own only about 15 to 20 percent as much net wealth.”. The racial wealth gap means that people of color are less likely to be able to weather financial shocks without support. This is why an emergency fund is
Canary’s 2022 Impact Report, How Emergency Relief Funds
crucial for companies committing to advance racial equity in the workplace.
In a country where women represent 50.5% of the entire population, it’s interesting to note the percentage of females requesting emergency grants through our platform (75%) far outpaces their national representation. This is likely partially the result of who is in our sample. While we don’t have the data to confirm this, it is likely that the employers we work with employ a large percentage of women. Women also might find it easier to raise their hands and ask for help. That said, some of what we are seeing probably reflects the fact that women make
“83 cents for every dollar earned by men”, which contributes to a gender wealth gap with the same result as the racial wealth gap: women often have weaker financial safety nets than men.
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Our latest Impact Report shows an even larger gender disparity, though the racial disparity decreases. We expect these numbers to ebb and flow as the workforce composition of the companies we work with shifts. Still, we anticipate that the basic storyline will remain the same: women and people of color have less robust safety nets and, therefore, need more help to achieve the same level of financial security as the rest of the population.
We can say for certain that investing in employee financial security is essential to creating and sustaining equitable work communities.
Together, We Can Influence Organizational Change
Kudos to the HR leaders who won’t let us (or SHRM) forget that the human experience should remain at the center of the work of Human Resource teams. Acknowledging that those experiences look different for each team member and are often a product of their background and access (or lack thereof) to resources is critical to supporting the best, most engaged talent. Amid challenging news cycle after challenging news cycle, it is refreshing to see this thinking reflected so eloquently by a community that is the backbone of what we do. In just the first half of this year, we have delivered $2M to employees facing financial hardship, and we could not help them get back on their feet without the internal advocates for their well-being.
At Canary, we will continue to work hand-in-hand with those who so clearly won’t let equity in their workplace fall through the cracks. We can’t wait for you to join us.
Are you curious how Grant Circle, Canary’s employee relief fund can help build your organization’s empathetic, equitable culture? Let’s chat. You can submit a form and book a meeting with our team today.
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What the HR Community is Saying
“Looking for alternatives to SHRM conferences? A human-first community?” Tracie Sponenberg shares updated resources for HR leaders looking for SHRM alternatives.
“👀 the last 24 hours have been entertaining to say the least.” Hebba Youssef of I Hate it Here asks for your take on SHRM.
“Have you noticed that your HR friends on LinkedIn have been feeling a little extra spicy and outspoken lately?” Jessica Donahue breaks down the impact of SHRM’s announcement.
