How financial wellbeing really supports diversity & inclusion in your business
Diversity and Inclusion policies (D&I) in the workplace set out an organization’s commitment to ensuring an equitable, diverse and inclusive workplace.
A diverse workplace is an important asset to an organization.
Valuing the differences of others is what ultimately brings us all together and can help build a successful, thriving workplace and a fair and inclusive work culture.
This is a wonderful corporate aspiration and one worthy of dedicated workplace policy to support it.
However, we must ensure that diversity and inclusion is supported with the right resources.
By broadening the talent pool through diversity and inclusion we attract talent into the organization. Talent that comes from all walks of life.
Diversity in talent brings a diversity of life experiences marked by differences in socio economic background, financial resources & capabilities, social capital & financial support networks, and financial mindsets.
All these factors have varying degrees of influence over an individual’s financial wellbeing.
The ANZ Financial Wellbeing Survey (2021) reports that socio-economic factors accounted for 54.5% of the explained variation in overall financial wellbeing between respondents, evidencing the clear link between social and economic factors as they relate to an individual’s upbringing and background and their financial wellbeing in adulthood.
This idea is further supported by the Findex Young Money Research Report (2021) which found that in general terms:
- Young people who have migrated to Australia or first generation Australians;
- Young people who had a long-term health condition or disability while growing up;
- Young people who had a parent who was unemployed for 12 months or more while growing up; and
- Young people who lived in a single parent home while growing up
were LESS likely to choose answers in response to financial scenarios that suggested higher levels of financial literacy and capability.
So when adopting a policy that results in a broadening of the talent pool at an organizational level, the business needs to ensure there are sufficient resources to ensure these diverse financial wellbeing needs are adequately supported.
Failing to do so only serves to weaken the organization’s mission to drive inclusivity and equity amongst employees.
Not only are these skills necessary to create better personal financial outcomes and successes in life, but financially stressed employees are 2.2 times more likely to leave their employer than those who are not and 76% agree they would be more attracted to another company who cared more about their wellbeing. [PWC Employee Financial Wellness Survey 2022].
Remuneration is only half the battle.
If your employees are not supported with the right skill set to manage and trade that income for their own financial security and prosperity in life – then you have missed an opportunity to genuinely support greater equity and opportunity for your employees.
