DEI: The New Benchmark for Employee Benefits

For most people, a dream job’s features include the ability to be appreciated for one’s contributions, a feeling of belonging and trust, and the opportunity to be one’s authentic self without judgment. For too many people, this dream is difficult to attain and the results can significantly impede personal fulfillment. And there are also downsides for an employer – a less energized and committed workforce.

Organizations today recognize the importance of building an inclusive workplace culture that removes barriers for those that are under-represented and marginalized. But many employees remain skeptical about attempts to address diversity, equity, and inclusion (DEI). According to Buck’s 2022 Wellbeing and Voluntary Benefits Survey, more than a third of the employees surveyed feel their companies are not committed to DEI – perhaps an indication that company efforts to date are not always perceived as genuine.

Why does this matter? Our research also shows that 35% of employees are considering a job change and they were more likely to want to leave if they feel different cultures and backgrounds are not respected, there is no demonstrated company commitment to DEI, and benefit offerings don’t meet the needs of a diverse population.

The key takeaway here is that if employers want to grow and thrive in the decades to come, they need to recognize that recruiting and retaining talent will be significantly more challenging if they don’t take meaningful steps to support an inclusive and diverse workforce.

DEI in the workplace

DEI is a term that gets tossed around a lot, but what does it truly mean for a workplace to be diverse, equitable and inclusive? The Department of Labor defines such a workplace as one that values and appreciates the “infinite range of individuals’ unique attributes and experiences such as ethnicity, gender, age and disability,” representing our current and evolving population. For businesses, DEI initiatives strive for fairness, impartiality and creating equality of opportunity for every worker; fostering a work environment that is a welcoming, supportive and respectful—in other words, inclusive—workplace.

Many CEOs are already prioritizing DEI initiatives and insisting on measurable progress. These initiatives are also important for employees. The survey findings also show that most employees—and especially younger employees—want their workplace to demonstrate a strong commitment to DEI through tangible, measurable actions that ultimately engrain DEI into the DNA of an organization. So, getting this right is important not only for employee retention but for attracting new talent.

Infusing DEI through inclusive and equitable total rewards offerings

To foster an inclusive workplace, it’s important to offer resources and benefits that support and are valued by a diverse workforce. Here are some key areas where additional support can make a difference.

Financial resources

The survey shows that financial wellbeing support is a top priority for employees, with 32% of employee respondents indicating that financial wellbeing assessments were among the benefits they valued the most. In addition, only 43% of employees rated themselves as “financially healthy,” with more than half feeling they live paycheck to paycheck, and a third unsure of how well they’re managing their money.

Consider easing financial burden by creating policies to assist with student loan repayment or formal tuition assistance program. Reassess the equitableness of your 401(k)-plan design from the perspective of lower-wage earners and ability to save. Offering programs to help workers improve their financial literacy and access to tools and resources to better manage their finances can improve debt levels and emergency savings, and better support vulnerable groups.

Inclusive health and wellbeing benefits

Start by assessing whether your health and wellbeing benefit programs support the needs of a diverse mix of people, so they feel valued, treated fairly, and able to thrive. Use data analytics to uncover segments of your workforce that might be unconsciously overlooked or excluded and consider whether your benefits are affordable, accessible, and aligned to meet the physical, mental, and emotional wellbeing needs of all your employees.

For example, examine benefit plan design to eliminate unintentional inequities such as covering medically necessary care, essential services, and treatments for transgender individuals, or add inclusive family building benefits for all types of families.

Flexibility

Offering remote work can allow differently abled people to more easily join the workforce, as well as support semi-retired professionals and working parents. Enabling remote work opens possibilities for hiring specialized talent regardless of their physical address. Adding floating holidays to the time-off policy can support people from various cultural and religious backgrounds. Expanding time off and a generous paid parental leave policy can make a meaningful difference for working adults who are navigating child and/or elder-care needs.

Professional development

On-the-job training and development can allow an organization to attract candidates from different economic and educational backgrounds. Recognition of educational and professional experience gained outside the U.S., or through nontraditional means, can also broaden the pool of available candidates.

Consider developing peer or external review processes to eliminate unconscious bias and favoritism in recruitment and advancement opportunities. To foster advancement, explore implementing a formal mentorship or sponsorship program and pair employees with role models across the organization from a variety of diverse backgrounds and experience.

Data analytics and HR tech

Data analytics are also indispensable for tracking and measuring the impact of DEI practices on business performance. Workforce data can reveal a deeper and clearer picture your employees and the challenges some may face. For instance, company research might reveal that women make up half the workforce; but a deeper dive into analytics will show how many of them are in key senior positions or are at the low end of the wage scale.

Use data analytics to:

• identify and remove unconscious bias from hiring and promotion decisions
• Create greater equity in pay practices
• Track progress toward DEI goals
• Improve development and advancement opportunities for underrepresented employee groups
• Enhance communication efforts to ensure full understanding of the organization’s commitment as demonstrated through culture change and supportive programs and resources

Smart, successful workplaces

The most successful organizations in the world recognize that diversity and inclusion spur innovation, increase productivity, and create a healthy, respectful workplace. Greater diversity and inclusion enable organizations to leverage the range of perspectives needed to address today’s complex challenges. Targeted, meaningful, and effective DEI initiatives make workplaces smarter and more successful, while also contributing to increased job satisfaction, employee retention, and revenue.

In the end, companies must now acknowledge the true power of diversity and ensure that all individuals bring their true selves to work.