Best of the week: Employers want to close the workplace diversity gap

February 26, 2021 11:13 AM

Many organizations are taking strides to close the opportunity gap for BIPOC, women and other underserved employee groups.

Ninety-eight percent of organizations have a workplace diversity program, according to the Boston Consulting Group. But ensuring employees have access to programs and benefits that support them is a long-term effort for employers.

PwC is hoping to close the diversity gap in accounting with a masters degree program that will give Black and LatinX accountants an opportunity to pursue higher education while at work. Additionally, student loan benefits provider Goodly is partnering with healthcare tech company ConsejoSano to provide their workforce with debt assistance, as student debt is disproportionately held by underrepresented employees.

“Organizations need to create a safe place for employees to talk about all the bias that they face,” says Bonnie Marcus, an executive coach. “People who set workplace policies need to take an assessment, listen to their employees and make that a part of unconscious bias training.”

Read about how employers are addressing discrimination and diversity in the workplace in our top stories of the week:

PwC offers free masters degree for Black, LatinX accountants

Pursuing higher education is a barrier for many working professionals, but PwC’s latest program is helping diverse students earn a free master’s degree on the job.

The PwC program is also seeking to close the diversity gap in the accounting industry by choosing 40 Black and Latinx students from across the nation to participate in their free masters program. As an industry, accounting lacks diversity; of the 1.9 million accountants in the U.S., only less than 9% of them are Black, according to the Bureau of Labor Statistics.

PwC’s master degree program will start in July and last for one year. During the summer, students will focus on online coursework, then progressively shift to working with clients as the firm’s busy season approaches. PwC hopes to offer these students full-time employment with the firm once they complete the program.

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PwC offers free masters degree for Black, Latinx accountants

Student loan benefits highlight the workplace diversity gap

Student loan benefits can be a critical component to closing the diversity gap and helping marginalized workers meet major milestones in their lives.

Student debt is disproportionately held by underrepresented employees. Black graduates owe an average of $25,000 more in student loan debt than white college graduates, according to research from EducationData.org, a resource for information on the U.S. education system.

“Underrepresented employees are starting their careers with larger debts to repay, which delays their ability to achieve financial goals, including saving to buy a home, building retirement savings or otherwise accumulating wealth,” says Greg Poulin, CEO of student loan benefit provider Goodly.

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Student loan benefits highlights the workplace diversity gap

Yet another hurdle for women at work: Their age

Despite the growing prevalence of women in the workforce, age discrimination is on the rise. Sixty-four percent of women say they have experienced age discrimination in the workplace, compared to 59% of men, according to a study by AARP.

Ageism — prejudice or discrimination on the grounds of a person's age — is often subtle. Whether it’s being removed from projects, replaced by younger coworkers or not offered professional developmentopportunities, the impact on a woman’s career can be devastating.

“As women show visible signs of aging, they are viewed as less competent and less marketable,” says Bonnie Marcus, an executive coach. “They definitely feel isolated. They have all this expertise, but nobody values it anymore.”

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Yet another hurdle for women at work: their age

Why it isn’t enough for companies to recruit employees of color

An estimated 60% of black households are facing serious financial problems as a result of COVID-19’s economic fallout, according to a poll by NPR. To stem the bleeding and capture back some of the money the racial wealth gap costs us, we must look at corporate America.

Nearly all major U.S. companies — roughly 98% — have a diversity program, according to a report by Boston Consulting Group. However, these initiatives have largely failed to live up to their promise. A full quarter of the people of color at those companies reported no benefits at all. A separate McKinsey study found that one in three Black employees feel unappreciated at work, a reality that then leads them to quit at higher rates.

Fixing this problem requires greater accountability. Corporations with the resources should make an effort to both research and publicize differences in compensation based on race. Being transparent about the pay and benefits of your workers goes a long way toward leveling the playing field within your company and showing your commitment to meaningful equality.

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Why it isn’t enough for companies to recruit employees of color