Research indicates that there is a large pay disparity between employees and this disparity is based on their gender and race rather than on the size and quality of their work. This means women and people of color (minorities) are less likely to be paid equally as their other privileged colleagues. Even if they are paid the same, some impediments prevent the minorities from achieving financial freedom.
Over the years, this has caused dissatisfaction among the marginalized employees who feel cheated. And has led to both physical and psychological health problems for them. So, a few years ago the concept of EDI which stands for equity, diversity and inclusion was developed to bridge the pay gap between genders and people of color. The idea was to eliminate the discrimination against gender and communities of color when it comes to receiving payment for similar work. Diversity, equality, and inclusion ensured that every employee, regardless of race and gender, received equal pay for similar work done.
Diversity, Equity, and Inclusion were introduced to combat the prejudice and intolerance exhibited at the workplace against minority groups such as people of color. Diversity makes sure that both employees and employers recognize the varied background of the workforce and respect them. Equity also ensures the fair treatment of all employees. Equity is responsible for a fair workplace where every employee is given the requisite tools to thrive relative to his/her strengths and weaknesses.
Inclusion ensures that every employee is including in the running of the organization; from top management to the least-paid employee. Inclusion captures the thoughts and feelings of everyone, both employer and employee, and uses that to drive the organization forward. The main aim of equity, diversity and inclusion was to promote equality and respect and eliminate prejudice and bigotry at the workplace. Diversity equity and inclusion, when appropriately implemented, leads to high productivity, employee retention, and organizational growth.
According to research conducted by Morgan Stanley, 78% of employees that were surveyed had high levels of financial stress which negatively impacted their work. The research further revealed that 50% of employees were in debt caused by overspending, 37% of the employees were in crippling debts, and 41% had not saved enough to cover three months of living expenses should any misfortune befall them. So without wellbeing programs for employees in place, such employees are likely to be less productive due to financial stress. GuardianWealth financial wellness program has the requisite tools to equip your employees to be financially well.
Equity, diversity and inclusion have proven to be game-changers at workplaces as many organizations who have utilized them have reported a spike in their growth. Employees who used to skip work have now found the desire to not just be regular but punctual at work. Though equity, diversity and inclusion are all important in the workplace. The one thing that matters most to employees is equity.
In the years past, most employees used to push for equality, that is, equal treatment at the workplace. Though it sounded plausible, it was woefully inadequate as it didn’t help minorities to become financially free. For example, it was realize that women didn’t receive the same pay packet for similar work done. This was due to various hurdles that impeded their performance at the workplace. For example, a single mother with three kids struggle to be punctual at work. She could hardly concentrate on her work due to extreme worry and exhaustion and as a result, was less productive. Thus, she also receive less pay for her efforts. Other employees, especially male employees who didn’t have such impediments, were highly effective and receive more money. This was hugely unfair to the single mother as the playing field was heavily skew in favor of the male worker.
Equity, diversity and inclusion were, therefore, introduce to ensure that the hurdles were remove. And the playing field leveled so the disadvantaged employees could perform better, thus the workplace became equitable. It made sure the single mother, for example, could either work from home or have adjustable working hours that would maximize her productivity.
Equity, diversity and inclusion recognized the bottlenecks that plagued the single mother at the workplace, leveled the playing field by eliminating the bottlenecks. And included her opinions and valuable insights in the running of the organization.
Equity leads to a happier, energized, and highly productive employee which can, in turn, improve the fortunes of the organization. It brings the best out of every employee and leads to a strong employer-employee relationship. Equity, diversity and inclusion give every employee an equal footing. And the right environment for each employee to thrive and to contribute to the growth of the company. Equity, diversity and inclusion make every employee feel a part of the organization.
So what is Pay Equity?
Pay Equity means paying every employee who performs similar tasks equally regardless of experience, gender, and race. It ensures that every employee is adequately compensate for the work they have done. Pay Equity is an integral part of equity, diversity and inclusion. However, it is not enough to help minorities to achieve financial freedom.
Pay equity is making sure employees are getting pay equally for equal work done. It is an aspect of equity, diversity and inclusion that allows employees to be compensate equally when they perform the same or similar task. However, pay equity isn’t enough if the issue of equity is to be tackle holistically. Studies have shown that communities of color have certain impediments that prevent them from becoming financially free even if they receive the same salary as the whites. The whites, however, don’t have such impediments thus they can quickly and easily become financially free. To help people of color attain financial freedom, the employment field doesn’t only need equal pay, but equal opportunities and that is where equity, diversity and inclusion step in.
Take, for example, a woman who hails from a black community. She could be paid equally for performing the same tasks as her colleagues, but other externalities like paying back twice the loan amount as compare to her white colleagues could stand in her way of building wealth. Equity, diversity and inclusion not only promote pay equity but “career equity” as well. The idea is to find out the root causes of the impediments of people of color and other minorities and to help solve them so they can become financially free. This can only be achieve through equity, diversity and inclusion.
One of the root causes of impediments that plagues minorities. When it comes to recruitment and employment is the HR policies of certain organizations. These policies give an unfair advantage to privileged people to the detriment of the minorities. So, right from the get-go, the privileged have a headstart while the minorities struggle to get going. Equity, diversity and inclusion are therefore design to teach employers to appreciate the varying backgrounds of applicants and recruits and tailor their policies to suit them. It helps the employers to level the playing field. And be fair to all applicants and employees by providing an equitable playing field. Through equity, diversity and inclusion, minority groups like people of color can make enough money to start building wealth. With career equity, they can experience financial freedom, just like their privileged counterparts.
Implementing pay equity in equity, diversity and inclusion can be tricky. However, several tools can help navigate the tricky waters. One of the best on the market with a proven track record is the GuardianWealth all-in-one personal finance app which is custom-built to enable you to become financially free. Built on the principle of equity, diversity and inclusion. The app tackles barriers that hinder communities of color and minorities from building wealth. Some of the barriers that impede people of color and minorities include:
The GuardianWealth all-in-one personal finance app, operating on the principle of equity, diversity and inclusion, tackles these barriers by:
Our GuardianWealth all-in-one personal finance app is your sure way to achieve financial freedom through equity, diversity and inclusion. Why don’t you give it a try today?