Discussions about diversity and inclusion in the workplace face significant challenges, particularly as some major organizations recently ended or scaled back initiatives. However, the need for fair and inclusive workplaces isn’t going away. Employees increasingly expect fair treatment across the employee experience, including their benefits.
As Tom Spann, Brightside CEO and co-founder recently told BenefitsPRO: “Benefits teams in particular have an opportunity to look at areas such as healthcare and financial health, where benefits are less utilized or less valuable to women and people of color.”
Here’s a closer look at why thinking beyond financial wellness benefits and retirement solutions can create a culture of deeper inclusion in the workplace, without a formal program or label.
Personalization and relevance matters
Conversations around money are personal and emotional. All employees – including women and people of color (who are also overrepresented in the frontline workforce) – must perceive a financial benefit as “for them” before they will use it, which extends to the person delivering the financial solution or service.
Suppose an employer offers its frontline employees a CFP-led financial planning benefit. A female warehouse worker may have high financial stress around how to keep up with rent, bills, and debt, but may never use the benefit due to assumptions that it will connect her with a man in a corporate suit who won’t understand her needs or who will judge her financial situation or choices.
Brightside’s Financial Assistants are a diverse team that includes bilingual speakers, people of color, and men and women of all ages and demographics, who provide one-on-one personalized support by phone or secure chat, ensuring every Brightside user is represented. This judgment-free, human-centered approach ensures employees feel understood, valued, and comfortable sharing the nuances of their financial lives, so we can help them address stated needs and the root causes of their financial strain.
Financial fragility is a barrier to retirement savings
Black and Hispanic families have far less saved for retirement than White families, and low-income frontline workers “contribute smaller portions of their incomes and are more likely to withdraw money early to cover financial emergencies than families with higher incomes,” according to The Urban Institute. Fewer than half of women in the workforce feel confident that they’re on track to have enough money saved for retirement, compared to 66% of men.
Further, 63% of Black households and 51% of Hispanic households had difficulty paying bills or expenses in 2024, compared to 38% of White households, according to the Consumer Financial Protection Bureau. Retirement benefits aren’t enough for employees struggling with day-to-day financial responsibilities. With benefits that help them overcome these challenges, they can progress and eventually focus on retirement.
That’s why Brightside Financial Care also helps employees navigate to other benefits, and employers see an 80% increase in employees contributing to their 401(k) on average, when they engage with Brightside.
In addition, Brightside works with employers to address signals of employee financial distress. For example, when a Fortune 10 company noticed increased 401(k) hardship withdrawals, Brightside stepped in with interventions that led to a 5% reduction in withdrawals, preserving retirement progress, reducing plan leakage, and addressing employees’ immediate financial needs.
Debt and credit disparities need to be addressed
Traditional benefits that only focus on financial education, planning, or long-term goals, ignore the debt and credit score challenges underrepresented employees grapple with, reinforcing inequities instead of addressing them. For example, the CFPB’s data revealed that in 2024, Black applicants were 21% more likely to be turned down for credit or loans compared to White peers.
Large amounts of high-interest debt and poor credit scores disproportionately impact people of color, limiting their options and keeping them financially ill. Brightside’s innovative platform includes paycheck-linked loans so employees can access affordable cash if they have a money emergency, personalized support, tools, and partnerships to help employees reduce debt, improve credit scores, and handle past-due debt in collections.
Fairness starts with Financial Care
Fairness and inclusion in the workplace isn’t about labels or programs—it’s about giving every employee the opportunity to succeed. When underrepresented employees don’t have benefits that are relevant to their financial needs, their financial stress can impact their physical and mental health, and make them less engaged, less productive, and feeling excluded from workplace culture.
Benefits leaders who rethink whether their financial benefits meet all employees where they are – particularly frontline workers – can create environments where employees feel valued, connected, and can contribute fully. Brightside Financial Care is leading the way with a proven model that addresses the financial challenges disproportionately impacting frontline workers, who are more likely to be women and people of color.
Ready to create a workplace where everyone thrives? Click here to learn more about how Brightside can drive inclusion and equity in your organization.
