In today’s dynamic work landscape, attracting and retaining top talent goes beyond competitive salaries. Flexible benefits aren’t just perks – they’re powerful tools to dismantle disparities, create opportunities, and cultivate a truly inclusive workplace.
As we celebrate Black History Month, we dedicate time to honor the achievements, resilience, and contributions of Black Americans throughout history. Just weeks later on March 8th, we recognize International Women’s Day, a global celebration of the social, economic, cultural, and political achievements of women. Together, these observances provide a timely opportunity to reflect on progress toward diversity, equity, and inclusion, and to reimagine a future free of bias, stereotypes, and discrimination.
Forward-thinking companies recognize the crucial role of the workplace in fostering equity. A powerful tool in this effort is LSAs – personalized benefits that encompass a holistic approach to employee well-being. LSAs break down barriers to health and address employees’ diverse needs. From childcare and family-forming benefits to mental health support programs and inclusive well-being options, LSAs affirm your organization’s commitment to creating parity and a more rewarding workplace for all.
In this article, we’ll discuss how LSAs can promote equity in the workplace—this month and beyond, especially for women and Black Americans.
Here’s what we’ll cover:
Workplaces are powerful catalysts for equity. By championing fair hiring practices, fostering an inclusive and respectful environment, and actively promoting inclusion, workplaces empower all employees to thrive.
Championing equity in the workplace
Driving inclusion means making sure that every employee is given the necessary support and tools to achieve their performance goals, perform at their highest level, and bring their whole selves to work. This is mission-critical in today’s workplace.
It’s important for inclusion efforts to prioritize outcomes, not activities. McKinsey’s latest research highlights the strong business case for diversity: companies in the top quartile for ethnic representation are 39% more likely to outperform financially. And the penalties for low diversity are intensifying. Companies with more than 30% women on executive teams significantly outperform those with fewer. Similarly, companies in our top quartile for ethnic diversity see an average 27% financial advantage.
Workplaces are powerful catalysts for equity. By championing fair hiring practices, fostering an inclusive and respectful environment, and actively promoting inclusion, workplaces empower all employees to thrive. Leading with empathy and a commitment to justice unlocks the full potential of your diverse workforce and enriches the experience of work for all.
5 Ways LSAs advance workplace equity
Here are some ways Lifestyle Spending Accounts (LSAs) can specifically promote equity and enrich employees’ lives:
1. Support Black and women-owned businesses
By consciously directing their LSA funds towards Black- and women-owned businesses, employees can contribute to the economic empowerment of these communities and foster a more equitable and inclusive local economy.
Funds can be utilized at restaurants, salons, bookstores, and cultural centers, or with Black and women entrepreneurs who are financial advisors, therapists, and life coaches. These local investments support jobs and economic opportunities.
By encouraging employees to volunteer and offering paid days of service during Black History Month and International Women’s Day, business leaders empower employees to support organizations advancing racial and gender equity directly. These opportunities foster a sense of community, inspire action, and demonstrate a tangible commitment to creating a more just and equitable society.
2. Promote education and empowerment
Lifestyle benefits empower individuals to invest in their professional growth. Valuable professional development courses, workshops, and certifications, equip individuals with in-demand skills that boost their potential. Tuition reimbursement supports higher education pursuits, enabling individuals to obtain degrees or certifications that open doors to new career opportunities and advancement.
LSAs also play a vital role in enhancing financial well-being. Employees can use funds for expert financial counseling services that guide individuals and families in developing sound strategies, reducing debt, and building a strong financial foundation.
3. Support health and well-being
Lifestyle benefits play a crucial role in enhancing the health and well-being of women and Black employees. By covering expenses for mental health services like therapy and counseling, employers can help address unique mental health challenges faced by these communities, such as stress and trauma, with culturally competent providers.
Support physical well-being with gym memberships and more, including fitness classes, and healthy food options, helping to combat health disparities within Black communities, including higher rates of chronic diseases.
For women, LSAs offer valuable support in accessing reproductive health services, family-forming support, prenatal care, and postpartum support. By providing financial support for these critical areas, organizations empower individuals to prioritize their mental and physical health, leading to improved overall well-being and a higher quality of life.
4. Build community and celebrate diversity
Lifestyle benefits are powerful tools for building community and celebrating diversity. Employees can use these funds to support local businesses owned by members of underrepresented groups, such as Black- and women-owned businesses, strengthening the local economy and fostering a sense of community and inclusivity.
Support cultural events, festivals, and community organizations that celebrate diversity. Attend art exhibits, concerts, and cultural performances, or donate to organizations that promote cultural understanding and appreciation. Employees can use LSAs to build stronger communities, celebrate diverse cultures, and contribute to a more inclusive and equitable society.
5. Support working parents and families
Lifestyle benefits can be used to support working parents and cover costs associated with childcare, including daycare, after-school programs, and summer camps. This allows parents, especially women who often bear the primary responsibility for childcare, to maintain their careers and financial stability.
LSAs can support the costs of elder care, enabling parents to balance work and family responsibilities while providing necessary support for aging loved ones. By alleviating these financial burdens, organizations can empower working parents to thrive personally and professionally.
Ensure Compliance with Confidence: Navigating ERISA compliance and medical travel benefits can be complex. Get expert legal insights to stay ahead. Connect with us at consultants@espresa.com for expert legal support.
Invest in your people, invest in the future
By empowering employees, organizations invest in their long-term success. Future-focused leaders support employee well-being in countless ways, from enhancing mental and physical health to facilitating work-life balance and fostering personal and professional growth, because they know making their people feel valued is their most important job. Celebrating holidays like International Women’s Day and Black History Month is mission-critical.
A holistic approach to employee support cultivates a thriving and engaged workforce, attracting and retaining top talent across all backgrounds. When employees feel valued, supported, and empowered, they contribute their best work, drive innovation, and propel the organization toward a brighter future. Bring this vision to life with Espresa—delivering inclusive, meaningful benefits that recognize, engage, and support every employee, every day.
How to Design a Lifestyle Spending Account Program: A Guide For Employers
