Diversity and inclusion have been buzzwords for some time but have recently become widely adopted. As a benefit plan sponsor, you have the unique opportunity to support diversity and inclusivity through the benefits and retirement savings plans you provide to your employees. But what does that mean, exactly? This blog will explore why supporting diversity with group benefits and retirement plans matters and how you can do it.
First, let’s talk about why diversity matters. Diversity in the workplace means having a workforce of people from different backgrounds, cultures, and experiences. When an organization values, embraces and supports variety, it can increase creativity, innovative thinking, and better decision-making. A diverse workforce also allows companies to understand better and serve various clients and communities. Research shows that diverse teams are more profitable, with companies in the top quartile for racial and ethnic diversity 35% more likely to have financial returns above their respective national industry medians.1
Group benefits and retirement savings plans can significantly support diversity and inclusion in the workplace. When designing your plans, it’s essential to consider the needs and preferences of a diverse workforce.
Examples of group benefits coverage supporting a diverse group of employees include:
Although incorporating diversity, equity, and inclusion is more prevalent from a group benefits plan perspective, an example of a plan design feature that supports diversity and inclusivity in your retirement savings plan is:
By offering a variety of benefits, companies can create an environment where all employees feel valued and supported.
When it comes to supporting diversity with group benefits, some best practices can help. First, consider creating a benefits/retirement committee comprised of employees from diverse backgrounds to ensure the plans reflect the workforce’s needs. Avoid the assumption that all employees have the same requirements by offering a range of benefits and communication that is multicultural and multilingual, both in the words and images used. Finally, follow up on the benefits provided to gauge participation and satisfaction rates, continually re-evaluating the benefits offered to ensure their effectiveness.
Studies show that a diverse workforce can positively influence employee health and wellness. For example, a diverse work environment can reduce stress, build social networks, and provide support and understanding around mental and physical health issues. By cultivating a work culture that values and embraces diversity through group benefits and retirement savings plans, employees are likelier to feel a sense of community and connection, increasing job satisfaction and overall well-being.
Employers play a crucial role in supporting diversity and inclusion. By recognizing and accommodating the diverse needs of employees, companies can create a more innovative, healthy, and productive workforce.